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Oxygen Scavenger Market
Market Overview
The Global Oxygen Scavenger Market is estimated to reach at a high CAGR of 4.7% during the forecast period (2021-2028).
Oxygen scavenger, also known as oxygen absorber is a combination of reactive compounds, used to reduce or remove oxygen, by combining one or more reactive compounds oxygen in an enclosed packaging or fluids. The purpose of an oxygen scavenger is to minimize the amount of oxygen available for deteriorative reactions, which leads to the reduced functionality of many types of products such as foods, pharmaceuticals, metals. Moreover, an oxygen scavenger is used as a corrosion inhibitor in applications like oil and gas production installations and seawater systems, thus increasing their service life.
Increasing demand for active packaging across various industries such as foods and pharmaceuticals to preserve the quality of products for a more extended period is expected to increase the market of oxygen scavengers.
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Market Dynamics
Reducing food wastage and increasing food security is expected to drive the market of oxygen scavenger.
As per the Food and Agriculture Organization of the United Nations, one-third of food produced for human consumption is wasted globally, which accounts for approximately 1.3 billion tons per year. Also, as per United Nations Environment Programme, in the United States, 30 per cent of all food, worth US$48.3 billion, is thrown away each year, and United Kingdom households waste around 6.7 million tons of food every year. Hence, wastage of food is a primary concern in developed countries.
In this situation, oxygen scavenger has emerged as a boon for the food industry as it aids in maintaining freshness in packaged foods such as processed and dried meats, meals ready to eat (MRE's), packaged coffee and teas. Moreover, the shelf life of packaged foods can be increased by avoiding food degradation due to oxygen which can lead to the growth of microorganisms. Foods with unsaturated fats and oils also benefit due to their high susceptibility to oxidation.
Henceforth, reducing food wastage and food security is anticipated to drive the oxygen scavenger market since they are an actual product for preserving food to reduce food wastage.
Consumer objection over the insertion of a packet is expected to hinder the oxygen scavenger market
Consumer objection over a packet inserted inside the package that could become loose and rupture accidental cause ingestion by a child or pet leading to fatalities. However, the incorporation of scavengers in packaging films has resolved the problem. Scavengers may either be embedded into a solid, dispersed in the plastic, or introduced into various package layers, including adhesive, lacquer or enamel layers.
Segment Analysis
On the basis of end-user, the oxygen scavenger market is segmented into food & beverages, pharmaceuticals, power, chemicals, oil & gas, pulp& paper and others.
The food & beverages sector is expected to dominate the global oxygen scavenger market
Oxygen scavengers are used to maintain the biological efficacy of food products. They protect food products against oxygen deterioration, thus increasing shelf life, customer acceptability and food safety. Oxygen scavengers in packaging eliminate the need for preservatives, subsequently improving the product's quality. According to Wageningen Economic Research and United Nations Industrial Development Organization (UNIDO), Europe is the world's largest food & beverage industry, followed by China and the U.S. in turnover. As per the Economist Intelligence Unit, there will be an increase of 60% in global demand for food by 2050. With the increasing growth of the food & beverage industry, the development of oxygen scavengers will increase during the forecast period.
Geographical Analysis
North America is expected to be the largest market for oxygen scavengers
North America is the largest consumer of packaged food and pharmaceutical products. As per the Association for Packaging and Processing Technologies, the USA's beverage industry is expected to generate sales of 45.5 billion U.S. dollars by 2028. Moreover, a large industrial base and high disposable income and high standard of living of the region's population are expected to fuel the growth of the oxygen scavengers market in North America.
Besides, the Asia-Pacific is witnessing strong growth, owing to the increasing demand from countries like India and China. The Chinese food and beverage industry is huge and plays a vital role in the country’s economy. According to the Chain Store & Franchise Association, China’s food and beverage sector reached around 595 billion dollars in 2019, a 7.8 per cent increase over 2018. The industry is projected to register continuous growth due to the increasing population, more purchasing power, and growing attention on food safety and food quality.
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Competitive Landscape
The oxygen scavenger market is moderately competitive with the presence of local as well as global companies. Some of the key players contributing to the growth of the market include Clariant Ltd., Mitsubishi Gas Chemical Company, BASF SE, Ecolab Inc., Kemira OYJ, Hydrite Chemical Co., Arkema Group, Accepta Ltd., Thermax Ltd, MCC Chemicals, Inc. among others. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the growth of the oxygen scavenger market globally.
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DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year we have secured more than 100 unique customers from established organizations all over the world.
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