United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size reached a volume of 725.80 KMT in 2024. With growing demand across various sectors such as food and beverages, healthcare, and industrial applications, the market is projected to grow at a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034, eventually reaching a market volume of 842.32 KMT by 2034.

Carbon dioxide is a versatile gas with a range of applications across diverse industries. It is used as a refrigerant, in the production of carbonated beverages, in fire extinguishers, and in medical applications such as enhanced recovery techniques. As demand increases across sectors, the CO2 market in the UK is poised to expand, with particular growth driven by the food and beverage sector, environmental sustainability trends, and advancements in industrial processes.

Growth Drivers of the CO2 Market in the United Kingdom

Several key factors are fueling the growth of the United Kingdom carbon dioxide market. These include the expanding use of CO2 in food and beverage production, the increasing focus on reducing carbon emissions through capture technologies, and the growing applications in other industries such as healthcare, manufacturing, and agriculture.

• Food and Beverage Industry Demand The United Kingdom’s food and beverage sector is one of the primary consumers of carbon dioxide. CO2 is widely used in carbonated drinks, including sodas, sparkling waters, and beers, as well as in food packaging to extend shelf life. The increasing demand for ready-to-eat meals, packaged foods, and carbonated beverages is driving the CO2 market.

  The rise of convenience foods and changing consumer preferences for packaged and bottled beverages have led to a higher consumption of CO2 in food production. Furthermore, advancements in food packaging techniques, such as modified atmosphere packaging (MAP), where CO2 is used to control microbial growth and extend freshness, are contributing to the growth in demand.

  The United Kingdom’s increasing consumption of premium and specialty beverages, including craft sodas and carbonated alcoholic drinks, is also expected to further boost CO2 demand. The growing trend of home consumption, especially with the popularity of at-home cocktail kits and carbonation devices, is expected to provide additional growth opportunities for CO2 suppliers.

• Healthcare and Medical Applications Carbon dioxide plays an important role in medical applications, such as in respiratory care, medical imaging, and for certain types of surgeries. It is used for insufflation during laparoscopic procedures, as it provides a safe, controlled way to expand the abdominal cavity to allow surgeons to operate with greater precision.

  As the healthcare sector in the UK continues to expand, the demand for medical-grade CO2 is also on the rise. In addition, CO2 is used in cryotherapy and in certain types of diagnostic imaging procedures. With the increasing number of minimally invasive surgeries and advanced medical procedures, the demand for CO2 in medical applications is expected to witness steady growth.

• Industrial Applications and Carbon Capture The industrial use of CO2 has expanded significantly in recent years. The gas is employed in a wide range of applications, including welding, fire suppression, and oil recovery, which are vital to various manufacturing industries. CO2 is used as a shielding gas in welding processes, preventing contamination of metal during production.

  The demand for CO2 in these applications is projected to grow as industrial activities continue to ramp up in the UK. With a focus on reducing environmental impacts, CO2 is also being utilized in the process of carbon capture and storage (CCS). This technology captures CO2 emissions from power plants and industrial processes and stores them underground, which plays a crucial role in mitigating climate change. The growing emphasis on sustainability and climate action in the UK is driving investments into CCS technologies, further boosting demand for United Kingdom carbon dioxide market.

  Additionally, CO2 is utilized in the production of chemicals, including urea, and for stimulating oil recovery in enhanced oil recovery (EOR) processes, where it is injected into wells to increase pressure and facilitate the extraction of oil. As industrial growth continues and the focus on carbon reduction intensifies, the need for CO2 in industrial applications will continue to rise.

• Environmental Sustainability and the Role of CO2 Capture The increasing emphasis on environmental sustainability in the UK is driving the growth of carbon dioxide markets. Carbon capture and storage (CCS) technologies are becoming more prevalent as industries look for ways to reduce their carbon footprint and comply with stricter environmental regulations. In addition to traditional CO2 applications, the market is witnessing significant investment in technologies that capture and utilize CO2 as a resource, such as in the production of synthetic fuels and chemicals.

  These innovations present significant opportunities for the United Kingdom carbon dioxide market, as businesses and governments alike seek to reduce emissions and develop more sustainable energy and industrial systems. The demand for CO2 capture technologies is set to grow as businesses seek to meet the UK's ambitious emissions reduction targets, and as global trends shift towards carbon neutrality.

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United Kingdom Carbon Dioxide Market Segmentation

The market can be divided based on source, production and End use.

Breakup by Source

• Ammonia
• Ethyl Alcohol
• Substitute Natural Gas and CCU

Breakup by Production

• Biological
• Combustion

Breakup by End Use

• Food and Beverages
• Oil and Gas
• Medical
• Metal Fabrication
• Others

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Ensus UK Limited
• BioCarbonics Ltd.
• Tata Chemicals Europe Limited
• Yara International ASA
• Air Products PLC
• BOC Limited (Linde)
• Air Liquide UK Ltd
• Nippon Gases
• Progases (UK) Ltd
• Others

Challenges in the UK CO2 Market

While the market for United Kingdom carbon dioxide market is growing, several challenges could affect its progress. The first of these challenges is the supply and demand balance of CO2. Carbon dioxide is primarily produced as a byproduct of other industrial processes, such as ammonia production and hydrogen generation. This means that CO2 supply can be volatile, particularly when production facilities experience downtime due to maintenance or other disruptions.

In addition, there are concerns surrounding the environmental impact of increased CO2 production. While CO2 is an essential gas for numerous industries, excessive emissions and reliance on fossil fuel-derived CO2 contribute to greenhouse gas accumulation. The market will need to manage these concerns, particularly as the UK seeks to reduce its carbon footprint and achieve net-zero emissions by 2050.

Another challenge for the United Kingdom carbon dioxide market is the potential for price fluctuations. Since CO2 is largely a byproduct of other industries, its cost structure can be affected by fluctuations in the prices of natural gas, ammonia, and other raw materials, which can have downstream effects on CO2 supply and pricing.

Opportunities for Growth in the UK CO2 Market

Despite these challenges, there are numerous opportunities for growth in the United Kingdom carbon dioxide market. Technological advancements, particularly in CO2 capture and utilization, offer significant growth potential. The development of carbon capture and storage technologies, alongside CO2 conversion technologies, will not only increase the efficiency of CO2 use but also open new markets for CO2 as a resource.

Additionally, as the demand for sustainable products increases, CO2 can be used as a resource in the creation of synthetic fuels and chemicals, such as plastics, which can drive the growth of new industries. The move towards greener technologies in the energy, transportation, and manufacturing sectors presents new avenues for CO2 market expansion.