Carbon dioxide (CO2) applications are key to true market growth, despite how some gas companies have grown via acquiring business which competitors once enjoyed. Companies either bid to win, or keep the status quo, which has resulted in little more than price reductions and no real gain in the bottom lines of industry players.
Some observers felt the series of acquisitions and mergers, particularly of aggressive competitors, has led to more disciplined pricing, eventually leading to growth in market prices, and income for investment. Such fair pricing is necessary to provide a reasonable return to the national and multinational gas company leaders.
All of the above has occurred over and over again, throughout the history of the CO2 and other gases industries, which more than likely, will occur again throughout the ages. On the other hand, as mentioned before, applications for the product which are either new or upgraded, leading to increased consumption of product in the industry, will be the true means of significant market growth. This is hoping for levels beyond the usual 2-3%/annum organic growth, consistent with the overall economy and population found in the markets served.
Therefore, the industry is in constant need or new and improved applications for the product. Some of these applications are borne out of necessity, and out of true creativity. Many such applications are extensions of a smaller take on the same, such as greenhouse enrichment, and enrichment of plant growth in the field, for premium, expensive crops, such as today’s reintroduction to the cannabis industry…
…Read the rest of this article in gasworld US Edition’s April issue. New and developing CO2 applications will also be published online, available from 1st April to subscribers only.
Not a subscriber and want to take advantage of even more great insights and exclusives in industrial gases? Visit www.gasworld.com/subscribe to access all content and choose the right subscription for you.