As consumers trend away from soda and other carbonated beverages, demand could plummet
Los Angeles, CA (PRWEB) September 18, 2014
Companies in the Carbon Dioxide Production industry manufacture and refine carbon dioxide, selling it to downstream industries in either gas, liquid or solid forms. The largest markets for carbon dioxide are food and beverage manufacturers. Food producers use carbon dioxide to quick freeze products, such as fruits, vegetables or pizzas. The gas is also used as a packaging preservative and additive. Beverage manufacturers use the compound to carbonate soft drinks, beer and other beverages. According to IBISWorld Industry Analyst Stephen Morea, “From 2009 to 2014, demand from these vital markets fizzled because of increased health concerns and shifting consumer preferences.” Consequently, industry revenue is expected to decline marginally at an average annual rate of 0.3% to $591.4 million in the five years to 2014.
Carbon dioxide (CO2) also has a variety of industrial applications. As an inert gas, carbon dioxide prevents oxidation and controls pH levels. In its solid state, CO2 is used as a noncombustible fire retardant, an industrial cleanser and a cold source to help preserve chemicals, fluids and organic tissue. Increasing US industrial production in the five years to 2014, caused demand from the manufacturing, construction, chemical and medical markets to rise during this period. Moreover, carbon dioxide has emerging applications in the oil and gas industry, as injecting the gas into depleted oil wells can help recover trapped oil. “Strong demand from the industrial and oil markets is expected to lead to a 2.4% increase in Carbon Dioxide Production industry revenue in 2014,” says Morea.
IBISWorld projects a slight turnaround for the Carbon Dioxide Production industry over the five years to 2019, supported by an anticipated expansion in industrial production, rising demand from medical markets due to a progressively aging US population and increased domestic oil drilling activity propelled by persistently high global crude prices. However, a continuation of shifting consumer preferences away from carbonated soft drinks and frozen fruits and vegetables will temper industry expansion during this period. Nevertheless, higher projected disposable incomes and consumer spending will keep the declines in these key downstream markets to a minimum. As a result, industry revenue is expected to increase in the five years to 2019.
For more information, visit IBISWorld’s Carbon Dioxide Production in the US industry report page.
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IBISWorld industry Report Key Topics
The Carbon Dioxide industry manufactures carbon dioxide in compressed and solid forms. Firms then supply the carbon dioxide to a diverse range of customers, including industrial, medical and specialized users.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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