The beverage industry is evolving all the time. Breweries, wineries and distilleries face increasing pressures from fluctuating costs of inputs and especially for essential resources such as carbon dioxide. According to the Producer Price Index (PPI) for Industrial Gas Manufacturing: Carbon Dioxide from the Federal Reserve Economic Data (FRED), the price to purchase CO2 has increased significantly in recent years in the US. Starting at the base level of 100 in 1981, the index rose to levels around 450 in early 2020. However, over the past five years, the brewing industry has seen enormous increase in CO2 prices. This is reflected in the PPI with the index climbing to a peak of over 778 by August 2025, reflecting a 72% increase of price of carbon dioxide since 2020. This increase has already had fatal consequences for breweries worldwide, where CO2 is vital for carbonation, purging, and packaging.
DALUM Beverage Equipment is a leader in CO2 recovery systems for breweries and help breweries and other beverage producers reduce costs and risk through DALUM CO2 Recovery Plants. DALUM Beverage Equipment has already helped 85+ breweries, wineries, distilleries and carbon capture innovators achieve CO2 independence, reducing reliance on external suppliers while lowering their carbon footprint. In this article, we’ll explore how these rising costs highlight the need for CO2 recovery systems and how DALUM’s solutions drive sustainable brewing technology forward.
For many years the beverage industry has depended on CO2 suppliers. From when the PPI data began in 1981until 2006, the price of CO2 has been relatively stable and predictable for breweries. However, since the price has been subject to fluctuations and rapid increases. The FRED PPI series for Carbon Dioxide tracks producer prices with a base of June 1981=100. Historical trends show a steady climb, with notable spikes tied to global events like the 2022 CO2 shortages caused by fertilizer plant shutdowns and energy crises. By 2025, the index reached highs of 778.7 in August, up from approximately 450 levels in 2020. This is a yearly over year increase in CO2 price of 11.56% from 2020. Meanwhile the general consumer prices has increased by 3.55x in this period, meaning CO2 prices have risen more than twice as much as overall consumer prices since 1981.
As for breweries, this is a direct increase in input costs. CO2 is a significant operational expense in carbonating beer, but also wine and spirits. It is also used in tank purging and for packaging lines. Craft Beer Professionals reports the UK brewing industry facing at least 300% in price increase in CO2 during 2020 and 2021, forcing some operations to halt production. CBP also reports that in some the supply chain failures was so severe that producers were unable to meet the demand for CO2, forcing breweries to either temporarily suspend production, or fully close. Craft breweries, who often has a thin margin already are particularly vulnerable to these price spikes. In addition, sustainability experts that industrially produced CO2, which many breweries still purchase from also amplifies climate impact, as industrial CO2 production is energy-intensive and releases significant amounts of CO2 into the atmosphere. The reality of the CO2 market has spotlighted CO2 Recovery as a practical response, and by implementing DALUM CO2 Recovery Plants, breweries can collect, purify, liquefy, store, and make CO2 ready to be used in all steps of beer production. This approach both hedges against price volatility and aligns with breweries’ sustainability goals.
CO2 recovery systems can capture the gas emitted during fermentation, purify it, and liquefy it for storage and reuse. Economically, with PPI trends showing ongoing increases, recovery can offset expenses equivalent to hundreds of thousands of dollars annually for mid-sized operations. However, even though cost reduction is a major incentive for CO2 Recovery, the benefits extend way beyond. There are also large environmentally incentives associated with CO2 Recovery. A study at the University of Winnipeg showed that capturing one ton of CO2 reduces emissions by up to two tons when accounting for avoided industrial production.
DALUM’s systems has patented designs that integrate seamlessly into existing workflows. Features like automatic controls, remote monitoring, and high recovery rates ensure reliability and minimal maintenance.
Read more about CO2 Recovery Plants in this article: “What is a CO2 Recovery Plant”
Learn how CO2 Recovery can help your brewery: “Why Should My Brewery Implement CO2 Recovery?”
DALUM is a pioneer in small-scale CO2 recovery, offering financially feasible solutions tailored craft breweries. DALUM was founded by Kim Dalum a CO2 recovery expert who has 25 years in executive positions with distinct global engineering firms. DALIUM Beverage Equipment’s technology also enables sales of excess CO2, turning byproduct CO2 from fermentation into a revenue stream with the DALUM Cylinder Filler.
As the PPI for carbon dioxide continues to increase, breweries, wineries and distilleries must find new strategies to remain competitive. DALUM CO2 Recovery Systems offer a proven way to mitigate risks, decrease costs and enhance sustainability. DALUM Beverage Equipment is an industry leader, proven in delivering world class engineered CO2 recovery plants. With more than 85 installations and customer successes worldwide, DALUM is a trustworthy supplier of equipment. Contact DALUM today to explore CO2 solutions tailored for your operation.
The price of CO₂ has increased more than 70% since 2020, according to U.S. Producer Price Index data. Supply shortages, fertilizer plant shutdowns, and energy crises have made CO₂ more expensive and less reliable for breweries, wineries, and distilleries.
CO₂ recovery captures the gas released during fermentation, purifies it, and makes it ready for reuse. This eliminates or reduces the need to buy industrial CO₂, saving mid-sized breweries up to hundreds of thousands of dollars per year while ensuring a stable supply.
Recovering one ton of CO₂ prevents up to two tons of new emissions by avoiding the industrial production of CO₂. This supports breweries’ sustainability goals and helps reduce their overall carbon footprint.
During fermentation, CO₂ is captured, purified, liquefied, and stored for reuse in carbonation, purging, and packaging. DALUM systems automate this process with smart controls and remote monitoring to ensure high efficiency and reliability.
