Global Oxygen Scavenger Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Global Oxygen Scavenger Market Analysis

Global oxygen scavenger market is expected to reach US$ 3.5 Bn by 2030, from US$ 2.4 Bn in 2023, exhibiting a CAGR of 5.4% during the forecast period. Oxygen scavengers are chemical agents that bind and remove oxygen from closed systems to inhibit oxidation and spoilage. These are used across industries such as food & beverage, pharmaceutical, power, oil & gas, and chemical for their oxygen absorption properties. The market growth is driven by rising demand for packaged foods, increasing focus on food wastage reduction, and growth of healthcare industry.

Oxygen scavengers or oxygen absorbers are added to enclosed packaging to help remove or decrease the level of oxygen in the package. They are used to help maintain product safety and extend shelf life. There are many types of oxygen absorbers available to cover a wide array of applications.

Global Oxygen Scavenger Market- Drivers

• High requirement for oxygen scavengers from pharmaceutical industry: The pharmaceutical industry widely uses oxygen scavengers to protect sensitive pharmaceutical preparations and medical devices from degradation. Oxygen scavenger sachets are integrated into bottle and jar lids or added to bulk containers to maintain product stability and increase shelf life of drugs.
• Expansion of retail chains: The expansion of retail chains such as supermarkets, hypermarkets and convenience stores in developing regions is contributing to rising demand for packaged and sealed food products. Retail chains require packaging with high barrier properties to prevent spoilage during transportation and storage. This is expected to boost adoption of oxygen scavengers across the retail sector.
• Increasing product launch: Increasing product launch by the key players in the market is expected to drive the market growth market over the forecast period. For instance, in July 2021, Clariant, a Switzerland-based specialty chemical company, announced that it had expanded its line of oxygen scavenger products with the launch of a new masterbatch solution.
• Increasing crude oil production: With the growth in crude oil production, especially shale oil, there has been increasing focus on preservation of oil pipelines from corrosion. Oxygen scavengers are being increasingly utilized in oil pipelines to remove oxygen and moisture. The rising global crude oil production is expected to boost demand for oxygen scavengers in the oil and gas industry during the forecast period.

Global Oxygen Scavenger Market- Opportunities

• Growing food processing industry in developing nations: Food processing industry in developing nations such as China, India, Brazil and ASEAN countries is rapidly growing due to population growth, rising incomes and changing lifestyles. This presents significant opportunities for oxygen scavenger manufacturers owing to high usage in food packaging applications. Investments in expanding production capacities in these high potential markets is a key growth strategy.
• Sustainability concerns driving green oxygen scavengers: Due to increasing environmental concerns, the development of eco-friendly biodegradable oxygen scavengers derived from natural fibers or starch is an important opportunity. These can replace conventional scavengers and align with the sustainability goals of brands targeting environmentally conscious consumers.
• Increasing technological advancement: Increasing technological advancement by the key players in the market is expected to drive the growth of the market over the forecast period.  For instance, on February 7, 2020, Aptar CSP Technologies, a provider of material science and active packaging systems that are designed to ensure product protection, extended shelf life, and improved user experiences, announced the launch of its combination oxygen scavenging and moisture adsorption active packaging system. This technology is meant to utilize the company’s patented 3-phase Activ-Polymer platform within its Activ-Film product configuration.
• Increasing initiatives by the key players: Increasing initiatives by the key players is expected to drive the growth of the market over the forecast period. For instance, in April 2021, Airnov Healthcare Packaging, a creator of controlled atmosphere packaging, launched products that allow manufacturers of pharmaceutical and nutraceutical products to optimize their product development cycles through a series of oxygen protection and simulation solutions: Oxynov Barrier Bottles and Pharmakeep. Oxynov barrier bottles utilize extrusion-blow-molding (EBM) technology, creating a 6-layer bottle with ethylene vinyl alcohol (EVOH) that offers the highest barrier to oxygen and moisture available on the market within this packaging category, according to the company. Further, the rigid bottles do not shrink when using oxygen absorbers.

Global Oxygen Scavenger Market- Restraints

• High development costs: The synthesis and processing costs involved in developing high performance oxygen scavenger formulations limits widespread commercialization. The complex chemical processes result in high R&D and manufacturing costs, making them expensive compared to traditional preservatives. This can restrain market growth to some extent.
• Limited oxygen absorption capacity: While oxygen scavengers effectively reduce oxygen levels, these have limited absorption capacity based on their composition. Once saturation levels are reached, the scavenging reaction stops which affects long term preservation ability. This creates the need for higher scavenger concentrations or alternate solutions.
• Stringent regulatory policies: The stringent regulatory policies surrounding use of chemical preservatives in food contact materials poses challenges for oxygen scavenger adoption. Lengthy approval procedures and lack of clarity on regulations in some regions hinders growth and progress. Manufacturers have to reformulate products to meet different regional regulations.

Analyst’s View on Global Oxygen Scavenger Market:

Global oxygen scavenger market is expected to experience steady growth in the near future. The growing packaged food and beverage industry is a key driver as oxygen scavengers help to increase the shelf life of products. Adoption of oxygen scavenger in the pharmaceutical industry is also increasing due to stringent regulations regarding oxidation protection. North America currently dominates the market owing to well-established food and pharma sectors in the region. However, Asia Pacific is expected to be the fastest growing regional market.

Stringent U.S. FDA regulations capping acceptable oxidation levels could restrain the market to some extent. Volatility in raw material prices is another challenge for market players. Companies may look to develop innovative solutions to overcome these restraints. Increasing demand for extended shelf life and quality products across industries presents significant opportunities. Investment in R&D for new product formulations tailored to specific applications will be crucial for companies.

Transition towards sustainable packaging is another trend, prompting development of bio-based and recyclable oxygen scavenger variants. Players integrating digital technologies may have an edge through precision measurements, remote monitoring and predictive maintenance capabilities. Collaboration with packaging converters and brand owners remains important for market reach and feedback on product performance. While North America and Europe dominate currently, emerging markets in Asia and Latin America with fast economic growth present lucrative expansion opportunities

Global Oxygen Scavenger Market Trends

• Active packaging with oxygen scavenging properties: Active packaging with oxygen scavenging properties long read sequencing technologies like nanopore and PacBio allow sequencing of full length 16S rRNA genes and even complete bacterial and archeal genomes from metagenomic samples. This provides finer resolution and accurate taxonomic classification as compared to short reads. Long reads also aid better genome assembly and annotation from complex metagenomes. With improving accuracy and throughput, long read sequencing usage is increasing for metagenomics.
• Rising demand from cosmetics industry: Oxygen scavengers are finding growing usage in cosmetics packaging to preserve ingredients prone to oxidation such as oils and vitamins. Scavengers protect cosmetic products from degradation and performance issues. The cosmetics industry is expected to be an important end-use segment.
• Rising popularity of active oxygen scavengers: The popularity of active oxygen scavengers is growing rapidly in the global packaging industry. Active oxygen scavengers continuously absorb oxygen from the headspace of packaging and prevent oxidation of contents. These scavengers work throughout the shelf life of products and ensure long term freshness. These are being increasingly used in food, pharmaceutical and beverage packaging where protection from oxygen is crucial. Several consumer goods manufacturers have started incorporating active oxygen scavengers in their products due to rising consumer demand for extended freshness.

Global Oxygen Scavenger Market- Regional Insights

• North America- North America dominates the global oxygen scavenger market during the forecast period. The region accounts for over 41.3% of the total market share owing to strong presence of end-use industries such as food and beverage packaging in countries like the U.S. and Canada. These countries are the largest producers as well as consumers of packaged foods and drinks globally. Stringent packaging regulations regarding oxygen scavengers usage in North America has further boosted the regional market.
• Europe is expected to be the second-largest market for oxygen scavenger, accounted 28.7% of the market share in 2022. The growth of the market in Europe is due to increasing healthcare & pharmaceutical applications of oxygen scavengers in the region.
• Asia Pacific is expected to be the fastest-growing market for oxygen scavenger, with a CAGR of over 22.6% during the forecast period. Asia Pacific region has emerged as the fastest growing market for oxygen scavengers globally. Rapid industrialization and urbanization along with improving economic conditions have fueled the growth of Asia Pacific's food packaging industry significantly over the past decade. Countries such as China, India and Japan are now the manufacturing and exporting hubs for packaged foods and beverages not only in Asia Pacific but globally as well. This has boosted the regional demand for oxygen scavengers as their usage becomes a necessary part of packaging in these countries.

Figure 1. Global Oxygen Scavenger Market Share (%), By Region, 2023

Recent Developments in Global Oxygen Scavenger Market

Global Oxygen Scavenger Market Segmentation