Natural Refrigerants Market – By Type, By Application, By End User and Forecast, 2025 - 2034

Natural Refrigerants Market Size

The global natural refrigerants market was valued at USD 1.6 billion in 2024 and is estimated to grow at a CAGR of over 6.1% from 2025 to 2034.
 

Rising demand for eco-friendly refrigerants is a significant driver in the natural refrigerants industry, as industries and consumers increasingly prioritize sustainable solutions to reduce environmental impact. Natural refrigerants like ammonia, carbon dioxide, and hydrocarbons offer low Global Warming Potential (GWP) and zero or near-zero Ozone Depletion Potential (ODP), making them appealing alternatives to synthetic refrigerants such as HFCs and CFCs. This shift is further encouraged by government policies and international agreements like the Kigali Amendment to the Montreal Protocol, which mandates the phasedown of high-GWP refrigerants.
 

Industries such as food processing, cold storage, and retail have started integrating natural refrigerants to align with sustainability goals, reduce carbon footprint, and achieve regulatory compliance. Consumers are also becoming more aware of eco-friendly refrigerants, fueling demand for greener air conditioning and refrigeration systems. This trend is expected to drive market growth, with natural refrigerants becoming a preferred choice across various sectors.
 

Natural Refrigerants Market Trends

Growing adoption of natural refrigerants in industrial applications is a key driver in the market, as industries across sectors like food processing, pharmaceuticals, and manufacturing increasingly seek sustainable and efficient cooling solutions. Industrial applications have high energy demands for refrigeration and air conditioning, and natural refrigerants such as ammonia, carbon dioxide, and hydrocarbons are emerging as preferable choices due to their low Global Warming Potential (GWP) and near-zero Ozone Depletion Potential (ODP). These refrigerants offer a robust alternative to synthetic refrigerants, meeting both operational and environmental needs in energy-intensive settings.
 

The shift to natural refrigerants in industrial sectors is propelled by strict regulatory frameworks aimed at reducing greenhouse gas emissions, as well as by industry initiatives focused on corporate sustainability goals. Many large industrial players are opting for natural refrigerants to reduce carbon footprints and enhance operational efficiency, as these refrigerants often require less energy than traditional synthetic options. For instance, ammonia is highly efficient in large-scale cooling systems, particularly in food storage and processing facilities, where maintaining optimal temperatures is critical.
 

The industrial adoption of natural refrigerants is also supported by advancements in technology, including improved system designs and safety measures that mitigate the risks associated with flammable or toxic refrigerants. As industries continue to invest in greener solutions, the demand for natural refrigerants in industrial applications is expected to grow, establishing them as a central component of sustainable industrial cooling systems.
 

Natural Refrigerants Market Analysis

Competition from synthetic refrigerants presents a significant restraint in the natural refrigerants industry. Synthetic refrigerants, including Hydrofluorocarbons (HFCs) and Hydrochlorofluorocarbons (HCFCs), have long been dominant in refrigeration and air conditioning due to their high efficiency, availability, and ease of use. These synthetic options are often less expensive than natural refrigerants and require lower initial investment, making them attractive for cost-sensitive industries and consumers.
 

Despite environmental concerns surrounding synthetic refrigerants due to their high Global Warming Potential (GWP), they remain popular in many markets, especially where regulatory frameworks are less stringent. Synthetic refrigerants also often come with fewer safety challenges than natural alternatives, as natural refrigerants can be flammable (hydrocarbons) or toxic (ammonia). This safety aspect makes synthetics an appealing option in settings where safety regulations and insurance costs might pose barriers to adopting natural refrigerants.
 

Based on type, the market is segmented into ammonia, carbon dioxide, hydrocarbon and others. Ammonia dominate the market by generating USD 706.7 million revenue in the year 2024. Ammonia is a prominent natural refrigerant in the market due to its high energy efficiency and low environmental impact. As a non-ozone-depleting and low-global-warming-potential substance, it is widely used in industrial refrigeration systems, especially in large-scale applications like food processing and cold storage. Its adoption is driven by stringent environmental regulations and the shift toward sustainable refrigerants. However, ammonia's toxicity and flammability require careful handling and system design.
 

Based on application, the natural refrigerants market is segmented into cold storage, freezers, food processing, air conditioners and others. Cold storage hold a dominant market share of 30.6% in the market. Cold storage facilities are increasingly adopting environmentally friendly refrigerants like ammonia, CO₂, and hydrocarbons. These refrigerants offer low global warming potential and high energy efficiency, aligning with stricter environmental regulations and sustainability goals. Cold storage operators benefit from reduced energy costs and compliance with green standards, though the shift may require investment in updated, safer refrigeration technologies to manage any potential risks associated with natural refrigerants.
 

Based on end user, the market is segmented into industrial, commercial and residential. Industrial hold a dominant market share of 53.2% in the market. The industrial sector is a key driver in the natural refrigerants industry, utilizing options like ammonia, CO₂, and hydrocarbons for applications requiring large-scale, efficient cooling solutions. Natural refrigerants are favored in industries such as food and beverage processing, pharmaceuticals, and chemical manufacturing due to their low global warming potential and high energy efficiency. This shift is bolstered by stringent environmental regulations, leading companies to phase out synthetic refrigerants in favor of sustainable alternatives despite the need for specialized handling and safety measures.

The U.S. natural refrigerants market was valued at USD 255 million in 2024. In the U.S., the market is expanding rapidly as industries move toward environmentally sustainable solutions to meet regulatory standards and reduce carbon emissions. Ammonia, CO₂, and hydrocarbons are increasingly used across sectors like food processing, pharmaceuticals, and cold storage, benefiting from high energy efficiency and lower environmental impact. The U.S. regulatory environment, including the Environmental Protection Agency’s (EPA) guidelines, encourages the adoption of natural refrigerants, further promoting the shift away from synthetic refrigerants with high global warming potential.

In North America, the natural refrigerants industry is also witnessing significant growth as Canada and Mexico join the U.S. in transitioning to sustainable cooling technologies. Regional initiatives, along with increasing investments in energy-efficient refrigeration, support natural refrigerants' adoption across industries. North America's market benefits from governmental policies, consumer demand for eco-friendly products, and industry innovations aimed at enhancing safety and performance in natural refrigerant systems.
 

Natural Refrigerants Market Share

A-Gas International, AGC, Air Liquide, Danfoss, engas Australasia collectively dominate the natural refrigerants industry with their extensive industry experience, innovative product offerings, and widespread global presence.  A-Gas International specializes in refrigerant lifecycle management, providing natural refrigerants like CO₂ and hydrocarbons to support the industry’s shift to eco-friendly cooling solutions. They focus on sustainable practices, including recovery and reclamation services, helping companies transition from synthetic to natural refrigerants. AGC offers innovative glass and chemical solutions and is engaged in developing environmentally friendly refrigerant technologies. They invest in research to enhance the performance and safety of natural refrigerants, addressing the global demand for sustainable cooling options.

Air Liquide supplies gases and technologies, including CO₂ and ammonia for refrigeration systems, with a strong focus on sustainability. Their expertise in gas management and storage makes them a vital player in the market, especially for industrial applications seeking to reduce environmental impact.

Danfoss provides advanced refrigeration components and systems designed for natural refrigerants such as CO₂ and ammonia. Known for its energy-efficient technology, Danfoss helps businesses optimize cooling solutions, meeting environmental regulations and improving system performance with natural refrigerants. engas Australasia specializes in hydrocarbon refrigerants and offers natural refrigerant solutions tailored for industrial and commercial refrigeration. Their products cater to the growing demand for low-GWP alternatives in Australia and surrounding regions, emphasizing eco-friendly and energy-efficient refrigerant options.

Natural Refrigerants Market Companies

Major players operating in the natural refrigerants industry are: 

• A-Gas International
• AGC
• Air Liquide
• Danfoss
• engas Australasia
• HyChill Australia
• Linde plc
• Puyang Zhongwei Fine Chemical
• Shandong Yuean Chemical Industry
• Tazzetti S.p.A.
   

Natural Refrigerants Industry News

• In March 2023, Danfoss announced that it acquired BOCK GmbH, a carbon dioxide and low-GWP compressor manufacturer. BOCK GmbH has one of the largest portfolios of compressors for natural refrigerants such as hydrocarbons, CO2 (R744), and other low-GWP refrigerants. The deal will accelerate energy efficiency and the global transition to natural and low-GWP refrigerants.
   
• In February 2023, Linde signed a long-term agreement and invested around USD 1.8 billion to supply clean hydrogen and nitrogen to OCI’s new world-scale blue ammonia plant located in Beaumont, Texas. The Beaumont facility aims to build and strengthen the world-leading blue ammonia and clean fuels platform.
   

The natural refrigerants market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Type

• Ammonia
• Carbon dioxide
• Hydrocarbon
• Others (chlorofluorocarbon and hydrochlorofluorocarbon)

Market, By Application

• Cold storage
• Freezers
• Food processing
• Air conditioners
• Others (heat pumps, data centers)

Market, By End User

• Industrial
• Commercial
• Residential

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa