Carbon Dioxide (CO₂) — Summer Heat Drives Dry Ice Demand as Market Enters Sustained Tightness Phase
THe industrialcarbon dioxidemarket is entering a new phase of supply-demand dynamics in 2026, with the arrival of summer driving increased demand for dry ice refrigeration and beverage carbonation, while global production capacity faces structural Constraints. As of May 26, 2026, the national averageCO₂ price stood at 319 yuan per metric ton, representing a 0.63 percent daily increase and the continuation of an upward price trend. Market participants report generally active trading activity, with daily transaction volumes holding at elevated levels and spot availability tightening across multiple regions.
The price movement is driven by multiple seasonal and structural factors. As temperatures rise across the northern hemisphere, dry ice demand for cold chain logistics and transportation of temperature-sensitive goods has increased substantially. Carbon dioxide is the primary raw material for dry ice production, and this seasonal demand surge is tightening spot availability. In Northeast China, injection well demand for enhanced oil recovery has also increased, providing additional consumption support. Large-scale chemical industry users continue to maintain stable operations, and the large chemical segment is performing well, with market transactions remaining steady.
According to Chyxx industry research, China's carbon dioxide industry has evolved beyond a single industrial gas branch into what analysts describe as a "carbon circulation hub" connecting energy, chemical, environmental protection, and multiple industrial sectors, with circular economy applications and CCUS (carbon capture, utilization, and storage) technologies emerging as new growth frontiers. At the end of 2025, China's CO₂ market price was 308 yuan per ton, representing a year-on-year increase of 1.32 percent.
Pricing currently varies significantly by product grade. In Shandong province, industrial grade CO₂ mainstream ex-factory prices range from 183 to 295 yuan per ton, while food grade CO₂ ranges from 300 to 360 yuan per ton. Food grade CO₂, which requires higher purity (typically 99.9 percent or higher) and stricter impurity controls, commands a premium over industrial grade due to its use in beverage carbonation and food processing applications.
Global market data reveals a broader tightening trend. According to gasworld analysis, global CO₂ production capacity is expected to decline from 35.7 kilotons per day in 2025 to 34.9 kilotons per day by the end of 2026, while demand continues to grow at approximately 2 percent annually, pushing the market into a period of sustained tightness. Meanwhile, the global industrial CO₂ market is projected to expand from 5.6 billion USD in 2025 to 5.96 billion USD in 2026, representing a CAGR of 6.5 percent, driven by industrial manufacturing expansion, beverage carbonation demand, oil and gas extraction operations, increased ammonia production, and rising metal processing requirements.
Looking ahead, the CO₂ market faces a mix of seasonal and structural factors. Summer peak demand for dry ice will likely continue to support prices in the near term, while the decline in global production capacity points to sustained tightness through the remainder of 2026. For end users searching for “food grade CO₂ price per ton”, “industrial carbon dioxide gas supplier”, or “beverage-grade carbon dioxide for carbonation”, the procurement environment suggests that forward contracting and supply diversification may offer advantages over spot purchases.
Sources: Mysteel CO₂ Daily Price Reports, May 2026; gasworld Global CO₂ Capacity Analysis, April 2026; GII Global Industrial CO₂ Market Report, January 2026; Chyxx China CO₂ Industry Analysis, May 2026