At a time when 70% of total US demand for Carbon Dioxide (CO2) in the merchant market originates from the food and beverage industries, few topics create more potential angst in the supply chain than the prospect of extended CO2 supply shortages. Yet current market dynamics and associated CO2 supply/demand trends indicate that future supply shortages remain an imminent reality, compelling US food processors and beverage producers to seek innovative solutions to ensure reliability for their customers.
The nationwide CO2 supply crisis of 2015 reinforced the importance of continency planning and effective partnership between suppliers and customers to shore up supply chain reliability. We’ve learned a lot since 2015, and we have listened to what food and beverage producers need to remain reliable and competitive for their customers when shortages occur. As a result, new supply capabilities and technology solutions exist today to address the challenge of growing uncertainty around CO2 supply.
At the start of 2019, the CO2 market remained tight in countries throughout the world, including the US. Since then, demand for CO2 has continued to grow, spurred by a combination of regulatory policies, consumer preferences, and even the ripple effects of the African Swine Fever epidemic in Asia.
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