GCC Liquid Carbon Dioxide Market - 2023-2030

GCC Liquid Carbon Dioxide Market - 2023-2030

GCC liquid carbon di-oxide market reached US$ 28.1 million in 2022 and is expected to reach US$ 43.5 mllion by 2030, growing with a CAGR of 5.6% during the forecast period 2023-2030.

Due to the region's rapid industrial and economic development, the GCC (Gulf Cooperation Council) liquid carbon dioxide (CO2) market has experienced tremendous expansion in recent years. Liquid CO2 is widely used in a variety of industries, including food and beverage, oil and gas, fire suppression, chemicals, and more, owing to its adaptability and accessibility.

Liquid CO2 of the food-grade variety is frequently utilised in the carbonation of drinks including soda, sparkling water, and beer. Due to shifting consumer preferences and an expanding beverage industry, the demand for carbonated beverages is increasing in the GCC region. The proper quantity of carbonation is ensured by food-grade liquid CO2, which also aids in maintaining product quality and consistency. The GCC liquid CO2 market is expanding as a result of its accessibility and suitability for use in carbonation.

For instance, beverage producers in the GCC use food-grade liquid CO2 to create a variety of carbonated soft beverages that are well-liked by consumers in the region. Therefore, food grade liquid c arbon di-oxide holds more than 1/3rd of the segmental market shares.

Market Dynamics
Growing Food and Beverage Industry
In the food industry, liquid CO2 is used for a variety of processing and preservation activities. To preserve the quality and texture of food items, liquid CO2 is employed as a cryogenic agent in the production of frozen foods. In the process of processing food, liquid CO2 also functions as a cooling agent, extending the shelf life of perishable goods. The need for liquid CO2 as a processing and preservation aid grows as the GCC region's food processing industry develops to fulfill the region's expanding demand for processed and convenience foods.

Beverage dispensing systems are in high demand in the GCC hospitality industry, which includes hotels, eateries, and cafes. These systems frequently use liquid CO2 to add carbonation to a variety of beverages, such as post-mix cocktails, draught beer, and soda fountain sodas. The need for liquid CO2 in beverage dispensing systems rises as the hospitality sector expands and consumers seek out such companies.

Environmental Concerns and Regulations
The GCC nations are committed to decreasing their carbon emissions and diversifying their industries to pursue more environmentally friendly alternatives. These commitments include Saudi Arabia's pledge to diversify its energy mix and raise the proportion of renewable energy sources, as well as the United Arab Emirates (UAE) pledge to reduce carbon emissions by 23.5% by 2030. In order to meet these goals, sustainable solutions must be put in place, and liquid CO2 can help many businesses reduce their emissions.

Fluctuating Crude Oil Prices
The order in which investments and resources are prioritized within the energy sector can be impacted by fluctuating oil prices. Governments and businesses may concentrate on reducing the impact on their main oil and gas activities during periods of low oil prices, potentially giving less time and energy to the expansion of ancillary industries like the liquid CO2 market.

COVID-19 Impact Analysis
Due to decreased global demand and falling oil prices, the oil and gas industry saw changes during the pandemic. This had an influence on oil and gas project investment, which in turn had an impact on the demand for liquid CO2 in applications for well stimulation and enhanced oil recovery (EOR). Uncertainty spurred by fluctuating oil prices prevented the GCC's liquid CO2 market from expanding.

The liquid CO2 supply chain was impacted by Covid-19-related limitations and difficulties in logistics and shipping. The timely delivery of liquid CO2 to industries in the GCC region was hindered by shipping delays, border closures, and travel restrictions. Businesses that depend on liquid CO2 faced difficulties due to this interrupted supply chain, which had an impact on market expansion.

Segment Analysis
The GCC liquid carbon di-oxide market is segmented based on grade, application and region.

Growing Demand for Liquid CO2 in Offshore Oil Well Drilling Operations Drives Market Expansion
Due to the falling output of onshore oil wells, there has been a trend in recent years toward offshore drilling operations. Well-stimulation techniques must be used during offshore drilling operations to efficiently extract oil and gas. In order to fracture the rock formation and make extraction easier, liquid CO2 is poured into wells. Growing offshore drilling demand increases the demand for liquid CO2, which propels market expansion. Therefore, the oil and gas segment is expected to register the highest growth rate during the forecasted period.

Geographical Analysis
Saudi Arabia's Extensive Oil and Gas Industry Drives the Market Growth
Saudi Arabia has unveiled its ‘Vision 2030’ program to transform the country through the nurturing and growth of new industries. The National Transformation Program (NTP) adopted by the Saudi government under the Vision 2030 plan is focused on the identification of the problems and challenges faced by Saudi industries, including the pharmaceutical industry.

The Saudi Industrial Development Fund (SIDF) has disbursed mid and long-term loans of more than 17 billion SAR (US$ 4.5 billion) for the development of the local pharmaceutical industry. Liquid CO2 is used within the pharmaceutical industry as a supercritical fluid which acts a replacement for organic solvents in extraction processes. The development of Saudi Arabia’s domestic pharmaceutical industry will further augment demand for liquid CO2 in the country.

Competitive Landscape
The major global players include Linde plc, Hunan Kaimeite Gases, Continental Carbonic Products, Inc, Taiyo Nippon Sanso Corporation, SOL Group, Ras Gas, Gulf Cryo, Kuwait Oxygen and Acetylene Company (KOAC) , Dubai Industrial Gases (DIG) and Buzwair Industrial Gases.

Why Purchase the Report?
• To visualize the GCC liquid carbon di-oxide market segmentation based on grade, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of GCC liquid carbon di-oxide market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The GCC liquid carbon di-oxide market report would provide approximately 39 tables, 26 figures and 180 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies