Download Sample, Advanced Conveyor Systems Propel Dry Ice Manufacturing, Meeting Growing Industry Needs
The rise in preference for dry ice over traditional water-based ice is significantly driving market growth. Dry ice has a low temperature, making it ideal for chilling and preservation. Unlike water-based ice, dry ice sublimates directly into gas without leaving any residue, which is crucial for maintaining cleanliness in sensitive applications. Its non-combustible, non-toxic nature adds to its appeal, especially in sectors like food & beverages, where it’s used to enhance carbonated drinks and preserve freshness. Additionally, dry ice is cost-effective and highly valued in machine blast cleaning, pharmaceutical transport, and entertainment for its superior cooling properties. These distinct advantages are fostering increased demand and profitability across diverse industries.
Moreover, the growth of the global dry ice industry is significantly fuelled by advancements in production technology, demonstrated by recent innovations like those from Montech Conveyors Corp. For instance, in August 2024, Montech's deployment of innovative conveyor systems revolutionized dry ice manufacturing. Their tailored belt conveyors, including the TB40 and TB30 models, enhance production efficiency by automating processes and minimizing manual intervention. These conveyors are designed with flexibility in mind, featuring mobile, roller-equipped structures that streamline maintenance and adapt to varying production needs. This automation not only optimizes resource use but also facilitates precise height adjustments and improved machine accessibility. Such technological steps in dry ice production underscore the industry's shift toward more efficient, adaptable, and innovative manufacturing solutions.
However, the global dry ice market is experiencing prominent growth, particularly fuelled by the pharmaceutical industry's expansion. According to IQVIA MIDAS, in 2023, North America dominated pharmaceutical sales, accounting for 53.3% of the global market, while Europe held 22.7%. Especially, the United States has been a significant contributor, with 67.1% of new medicine sales during 2018-2023 occurring in the United States market. This sector’s growth is crucial for dry ice, given its role in transporting temperature-sensitive pharmaceuticals and vaccines. Additionally, despite a goods and services deficit increase to US$ 74.6 billion in April 2024, exports of pharmaceutical preparations saw a rise of US$ 1.1 billion, further driving demand for dry ice as per the United States Census Bureau and United States Bureau of Economic Analysis.
Moreover, the growth of the global dry ice industry is significantly fuelled by advancements in production technology, demonstrated by recent innovations like those from Montech Conveyors Corp. For instance, in August 2024, Montech's deployment of innovative conveyor systems revolutionized dry ice manufacturing. Their tailored belt conveyors, including the TB40 and TB30 models, enhance production efficiency by automating processes and minimizing manual intervention. These conveyors are designed with flexibility in mind, featuring mobile, roller-equipped structures that streamline maintenance and adapt to varying production needs. This automation not only optimizes resource use but also facilitates precise height adjustments and improved machine accessibility. Such technological steps in dry ice production underscore the industry's shift toward more efficient, adaptable, and innovative manufacturing solutions.
However, the global dry ice market is experiencing prominent growth, particularly fuelled by the pharmaceutical industry's expansion. According to IQVIA MIDAS, in 2023, North America dominated pharmaceutical sales, accounting for 53.3% of the global market, while Europe held 22.7%. Especially, the United States has been a significant contributor, with 67.1% of new medicine sales during 2018-2023 occurring in the United States market. This sector’s growth is crucial for dry ice, given its role in transporting temperature-sensitive pharmaceuticals and vaccines. Additionally, despite a goods and services deficit increase to US$ 74.6 billion in April 2024, exports of pharmaceutical preparations saw a rise of US$ 1.1 billion, further driving demand for dry ice as per the United States Census Bureau and United States Bureau of Economic Analysis.
Advanced Dry Ice Applications Raise Temperature Management Standards in Multiple Sectors
The dry ice pellets segment is expected to dominate the dry ice market due to its increasing adoption across multiple sectors. This segment’s expansion is driven by its pivotal role in handling temperature-sensitive shipments for industries such as healthcare, food and beverage, manufacturing, and logistics. Dry ice pellets are preferred for their ability to maintain consistent temperatures during transit, crucial for pharmaceuticals, vaccines, perishable foods, and industrial products. The segment’s growth is also supported by recent developments like Carbon Coatings’ April 2024 introduction of dry ice blasting in Southwest Florida and Miami. This innovative method highlights the versatility of dry ice pellets, used here to clean luxury vehicles and classic cars efficiently, underscoring their effectiveness in maintaining delicate surfaces without water or abrasives.
The food and beverage industry is the leading segment in the dry ice market. Dry ice has been crucial in holding perishable supplies cold and fresh and is indeed far better than its equivalent, traditional ice. With such perishable products as frozen foods, seafood, and even tender fruits, the quality of which needs to be preserved while they are being transported and stored requires extreme preservation. The demand for high-quality cold chain solutions has risen as a result of the growth of online grocery shopping and food delivery services, where dry ice is often used during handling, storage, and delivery. Additionally, strict regulations in the food sector require trustworthy temperature management, a task efficiently carried out by dry ice. Innovations in dry ice technology have also enhanced its performance, reinforcing its dominance in this sector.
Moreover, with the growth in e-commerce, particularly in the food and pharmaceutical industries, dry ice is in higher demand to prevent possible degradation of merchandise in transit. Retailers are steadily adopting advanced cold chain solutions, with temperature-controlled packaging expected to generate US$ 26.2 billion by 2030. This trend underscores the rising need for dry ice in food preservation and quality control, particularly for premium products. Apart from this, the pharmaceutical industry is using dry ice largely in transporting vaccines and biologics. Besides, dry ice blasting is also on the rise due to its cleaning capability without harming the environment in every sector, coupled with the increasing demand for new production and packaging technologies to invade different markets.
The food and beverage industry is the leading segment in the dry ice market. Dry ice has been crucial in holding perishable supplies cold and fresh and is indeed far better than its equivalent, traditional ice. With such perishable products as frozen foods, seafood, and even tender fruits, the quality of which needs to be preserved while they are being transported and stored requires extreme preservation. The demand for high-quality cold chain solutions has risen as a result of the growth of online grocery shopping and food delivery services, where dry ice is often used during handling, storage, and delivery. Additionally, strict regulations in the food sector require trustworthy temperature management, a task efficiently carried out by dry ice. Innovations in dry ice technology have also enhanced its performance, reinforcing its dominance in this sector.
Moreover, with the growth in e-commerce, particularly in the food and pharmaceutical industries, dry ice is in higher demand to prevent possible degradation of merchandise in transit. Retailers are steadily adopting advanced cold chain solutions, with temperature-controlled packaging expected to generate US$ 26.2 billion by 2030. This trend underscores the rising need for dry ice in food preservation and quality control, particularly for premium products. Apart from this, the pharmaceutical industry is using dry ice largely in transporting vaccines and biologics. Besides, dry ice blasting is also on the rise due to its cleaning capability without harming the environment in every sector, coupled with the increasing demand for new production and packaging technologies to invade different markets.
Recent Trends in the Dry Ice Industry
- The healthcare sector drives a surge in dry ice demand for temperature-sensitive vaccine distribution.
- Innovations in production technology enhance efficiency and cost-effectiveness, with automation reducing energy use.
- The rising focus on sustainability drives the dry ice industry to reduce emissions and reuse CO2.
- Dry ice expands into manufacturing and cleaning with eco-friendly industrial blasting applications.
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Complex Storage and Regulatory Hurdles Increase Operational Costs for Dry Ice Suppliers
The dry ice industry faces significant restraint factors influenced by several key challenges. Fluctuations in the cost of CO₂, a primary raw material, contribute to price volatility and can drive up production expenses. The variability in CO₂ prices is directly linked to broader industrial supply chain dynamics and can strain profit margins. Additionally, the inherent nature of dry ice necessitates specialized storage and transport solutions, which often translates to raised shipping costs, particularly for remote or international deliveries. Compounding these issues is the seasonal variability in demand. Dry ice usage is closely tied to temperature changes and specific industry needs, such as medical and food preservation, leading to unpredictable inventory requirements and production planning complexities.
Furthermore, according to United States Customs and Border Protection, dry ice, used to maintain temperatures for biological materials, is subject to stringent import regulations. This includes proper documentation, labeling, and adherence to safety standards for hazardous materials. Handling dry ice poses health risks, such as respiratory issues and physical injury from its extreme cold temperatures, necessitating specialized training and equipment. Additionally, its storage and transportation require strict safety measures to prevent CO₂ build-up, which can lead to asphyxiation or severe health complications. These complexities increase operational costs and regulatory compliance burdens, potentially hindering market growth.
Furthermore, according to United States Customs and Border Protection, dry ice, used to maintain temperatures for biological materials, is subject to stringent import regulations. This includes proper documentation, labeling, and adherence to safety standards for hazardous materials. Handling dry ice poses health risks, such as respiratory issues and physical injury from its extreme cold temperatures, necessitating specialized training and equipment. Additionally, its storage and transportation require strict safety measures to prevent CO₂ build-up, which can lead to asphyxiation or severe health complications. These complexities increase operational costs and regulatory compliance burdens, potentially hindering market growth.
Biofuel Producer Enhances CO2 Capture and Expands Dry Ice Production for Sustainable Solutions
Major market leaders employ marketing tactics focused on introducing new products, merging with other companies, and acquiring new businesses to grow their customer base and enhance their range of products. In June 2024, Cold Jet launched its advanced dry ice cleaning technology at JEC World, targeting the composite industry. The new i3 MicroClean 2® system was highlighted for its ability to efficiently clean tooling and prepare composite surfaces while maintaining high quality and environmental responsibility. The technology proved effective in removing contaminants such as release agents and polymers without causing damage or excessive wear to molds. Cold Jet’s solution demonstrated up to 75% reduction in cleaning time and integrated seamlessly into automated systems, reflecting advancements in LEAN manufacturing practices.
Moreover, in April 2024, Reliant Processing, Ltd., in collaboration with Show Me Ethanol LLC, initiated a new Liquid CO2 and Dry Ice Plant in Carrollton, Missouri. This facility, a testament to Reliant Holdings' dedication to innovation and sustainability, enhances supply reliability and supports growing customer demands. The plant, which produces Liquid CO2 and facilitates Reliant Dry Ice operations, adheres to rigorous safety and environmental standards. The opening of this plant not only supports Reliant’s market position but also boosts local employment and community engagement.
However, in May 2023, Holston Gases finalized its acquisition of Superior Dry Ice, based in Cartersville, Georgia. This strategic move expanded Holston's reach, leveraging Superior Dry Ice's established customer base and production capabilities to enhance its dry ice distribution across central and South Georgia. The integration promised to strengthen service quality for both companies' clients by combining expertise and resources. Holston Gases, a veteran in the industrial and medical gases sector with over 65 years in operation, now operates 43 locations across several southeastern states.
Moreover, In March 2023, Peli BioThermal significantly expanded its Crēdo Cube Dry Ice shipper lineup to address critical shortages affecting the pharmaceutical logistics sector. The newly introduced products, optimized for deep frozen applications, reduce dry ice usage while maintaining superior thermal performance. The expanded range supports payloads from 1.8 to 55 liters and provides temperature stability between -60°C and -80°C for up to 144 hours. By utilizing modern Vacuum Insulation Panel (VIP) technology, the improved Crēdo Cube line addresses dry ice supply problems and guarantees secure transportation of temperature-sensitive biologics and cell and gene therapies. Additionally, POET, the top biofuels producer worldwide, started expansions at its Lake Crystal, Minn., and Laddonia, Mo., sites in January 2023.
Moreover, in April 2024, Reliant Processing, Ltd., in collaboration with Show Me Ethanol LLC, initiated a new Liquid CO2 and Dry Ice Plant in Carrollton, Missouri. This facility, a testament to Reliant Holdings' dedication to innovation and sustainability, enhances supply reliability and supports growing customer demands. The plant, which produces Liquid CO2 and facilitates Reliant Dry Ice operations, adheres to rigorous safety and environmental standards. The opening of this plant not only supports Reliant’s market position but also boosts local employment and community engagement.
However, in May 2023, Holston Gases finalized its acquisition of Superior Dry Ice, based in Cartersville, Georgia. This strategic move expanded Holston's reach, leveraging Superior Dry Ice's established customer base and production capabilities to enhance its dry ice distribution across central and South Georgia. The integration promised to strengthen service quality for both companies' clients by combining expertise and resources. Holston Gases, a veteran in the industrial and medical gases sector with over 65 years in operation, now operates 43 locations across several southeastern states.
Moreover, In March 2023, Peli BioThermal significantly expanded its Crēdo Cube Dry Ice shipper lineup to address critical shortages affecting the pharmaceutical logistics sector. The newly introduced products, optimized for deep frozen applications, reduce dry ice usage while maintaining superior thermal performance. The expanded range supports payloads from 1.8 to 55 liters and provides temperature stability between -60°C and -80°C for up to 144 hours. By utilizing modern Vacuum Insulation Panel (VIP) technology, the improved Crēdo Cube line addresses dry ice supply problems and guarantees secure transportation of temperature-sensitive biologics and cell and gene therapies. Additionally, POET, the top biofuels producer worldwide, started expansions at its Lake Crystal, Minn., and Laddonia, Mo., sites in January 2023.
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Asia Pacific Leads Industrial Growth with Rising Need for Reliable Cooling Solutions
The Asia Pacific region, spearheaded by nations like China, India, and Japan, stands out as the dominant market for dry ice. According to the International Monetary Fund, this regional growth picked up to 5.0% in late 2023, exceeding projections. However, the Economic and Social Commission for Asia and the Pacific declares that 2024 and 2025 are most likely to grow by 4.4% on average. Based on its indication, economic growth triggers industrial activities, building projects, and consumer spending, respectively raising the demand for dry ice. Meanwhile, the food and beverage sector, which is expected to continue growing in the region, relies on drying ice because it makes sure that seafood, meat, and fruits will be fresh and brought to the destination. This growing sector further amplifies the need for dry ice, positioning the Asia-Pacific market as a significant area of opportunity.
Europe and North America are emerging as the fastest-growing regions in the dry ice market. Europe’s growth is driven by heightened demand in the healthcare sector, particularly for transporting temperature-sensitive pharmaceuticals and vaccines. Moreover, the rise in growth is supported by the food and beverages industries, which have an increased demand for extended shelf life and better storage. The increase in North America can be traced to a steady rise within the e-commerce sectors, where companies are now searching for effective cooling solutions to cater to their perishable goods. Aside from these, the event and entertainment industries' use of dry ice for special effects is a key reason for growth. Advancements in technology in the said sectors are production and automation, which make its operation efficient. Regulatory frameworks in Europe and environmental sustainability efforts in North America are also pivotal in shaping market dynamics.
Europe and North America are emerging as the fastest-growing regions in the dry ice market. Europe’s growth is driven by heightened demand in the healthcare sector, particularly for transporting temperature-sensitive pharmaceuticals and vaccines. Moreover, the rise in growth is supported by the food and beverages industries, which have an increased demand for extended shelf life and better storage. The increase in North America can be traced to a steady rise within the e-commerce sectors, where companies are now searching for effective cooling solutions to cater to their perishable goods. Aside from these, the event and entertainment industries' use of dry ice for special effects is a key reason for growth. Advancements in technology in the said sectors are production and automation, which make its operation efficient. Regulatory frameworks in Europe and environmental sustainability efforts in North America are also pivotal in shaping market dynamics.
The report provides a detailed overview of the dry ice market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for the dry ice market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the dry ice market. These Y-o-Y projections on regional and country-level markets brighten the political, economic,c and business environment outlook, which are anticipated to have a substantial impact on the growth of the dry ice market. Some key country and region included in the dry ice market report as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Dry Ice Market Research Report Covers In-depth Analysis on:
- Dry ice market detailed segments and segment-wise market breakdown
- Dry ice market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in dry ice industry)
- Current, historical, and forthcoming 10 years market valuation in terms of dry ice market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Dry ice market demand analysis
- Dry ice market pricing analysis over the forecast period (by key segment and by region)
- Dry ice market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the dry ice market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the dry ice market
- Dry ice market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on dry ice market forecast by countries
- Mergers and acquisitions in the dry ice market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the dry ice market?
The dry ice market is driven by increased demand from industries such as food preservation, medical transportation, and cleaning due to its cooling properties and eco-friendly nature.
Which regions have the highest demand for dry ice?
Regions with significant industrial activity, cold-chain logistics, and healthcare facilities exhibit higher demand for dry ice, particularly in areas with established supply chain infrastructure.
What challenges are affecting the dry ice market?
Challenges include high production costs, limited raw material availability, and safety concerns related to its handling and storage.
