The global carbon-neutral refrigerant market is projected to grow from USD 4.74 billion in 2025 to USD 12.96 billion by 2033, expanding at a compound annual growth rate (CAGR) of 13.43% between 2026 and 2033, according to a report by SNS Insider.
The growth is driven by increasing environmental regulations restricting high global warming potential (GWP) refrigerants and by the demand for low-GWP, energy-efficient cooling systems. Rising adoption of hydrofluoroolefins (HFOs), natural refrigerants, and blends across industrial, commercial, and residential applications continues to support market expansion. Government programs promoting sustainable technologies and corporate initiatives toward energy efficiency further contribute to the trend.
Natural refrigerants are expected to hold a 37.65% market share in 2025 due to their low GWP characteristics and broad use in residential and commercial systems. HFOs represent the fastest-growing product segment, projected to grow at a 10.50% CAGR during 2026–2033, supported by stricter environmental standards and their increasing use in next-generation air conditioning.
By application, residential refrigeration will lead with a 34.13% share in 2025 as households adopt energy-efficient and eco-friendly cooling systems. Air conditioning is the fastest-growing application, registering a 9.80% CAGR, driven by urbanization, rising temperatures, and government incentives for low-GWP refrigerants.
Among end-users, the food and beverage industry will account for 35.27% of market share in 2025 due to its need for reliable and sustainable cold storage and transport. The pharmaceutical segment is projected to expand at a CAGR of 11.53%, reflecting the growing demand for temperature-controlled storage for vaccines and medicines.
In terms of distribution, direct sales will represent 44.90% of market share in 2025 as industrial and commercial users maintain long-term supplier partnerships. Online sales are expected to grow at a 10.60% CAGR, supported by increasing e-commerce activity and easier access to environmentally friendly refrigerants.
Regionally, Europe is forecast to lead with a 39.54% market share in 2025 due to stringent EU regulations on refrigerant emissions. The Asia-Pacific region is projected to grow fastest, at a CAGR of 14.15% over 2026–2033, supported by industrial expansion and rapid urbanization.
Major companies profiled in the report include Honeywell International Inc., Daikin Industries Ltd., The Chemours Company, Arkema S.A., Linde plc, Air Liquide S.A., Mitsubishi Electric Corporation, Johnson Controls International plc, Emerson Electric Co., and Danfoss A/S.