➤ Key Highlights
Packaging suppliers are doubling down on R&D to create alternative cold-chain solutions amid tight supply for dry ice, as well as safety and sustainability concerns.
Demand for dry ice is vastly outpacing production due to supply issues with its main component, carbon dioxide.
No short-term turnaround is on the horizon, resulting in some concern about a potential shortage emerging in 2026.
Single-use, salt-based options can be 15 to 20 times more expensive than dry ice, according to Frank Butch, director of cold chain solutions at Veritiv.
Dry ice production in the U.S. currently is about 4,600 tons per day, according to Maura Garvey, president of Intelligas Consulting.
California is losing a chunk of its CO2 capacity: Two plants are closing by the end of this year and one by the end of April 2026, equating to a loss of nearly 850 tons per day by early next year, Garvey said.
Intelligas projects dry ice applications will increase from about 20% of CO2 demand in the U.S. to 23% by 2030.
Packaging suppliers are increasing research and development to find alternatives to dry ice as supply tightens and demand grows. Dry ice production is not keeping pace with demand, partly due to constraints in carbon dioxide supply and upcoming plant closures, particularly in California. Analysts indicate that these trends could lead to shortages and higher costs for cold-chain logistics in the near future.
This event illustrates how limitations in essential supply inputs can trigger significant structural changes across logistics networks. When foundational resources become constrained, pressure mounts on supply infrastructure to adapt, often accelerating innovation in packaging, distribution, and sustainability practices. The situation demonstrates the necessity for stakeholders to anticipate and respond to evolving supply dynamics by reconfiguring networks and exploring alternative solutions. Such scenarios highlight the interplay between resource availability and the broader transformation of industry value chains.
⚠️ Why it matters now
For CRE professionals, evolving supply constraints force a reassessment of logistics infrastructure, development priorities, and risk management. Understanding how input shortages reshape innovation and operational planning is essential for those involved in logistics real estate, construction, and underwriting. The lens underscores the importance of resilient supply-side strategies to navigate shifting dynamics and maintain operational continuity.
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➤ TAKEAWAY
Stakeholders may observe ongoing adjustments to supply chain infrastructure as companies seek new solutions to input constraints. Continued investment in research and alternative technologies is likely as the logistics sector responds to evolving resource pressures. Monitoring these structural adaptations will be important for those tracking the transformation of logistics and cold-chain networks.
