The United Kingdom carbon dioxide (CO2) market is an essential part of various industries, from manufacturing and healthcare to food and beverages. As of 2024, the market attained a volume of 725.8 KMT (thousand metric tons) and is projected to witness steady growth in the coming years. The market is estimated to grow at a compound annual growth rate (CAGR) of 1.5% between 2025 and 2034, reaching a volume of 840.5 KMT by 2034. In this blog post, we will delve into the United Kingdom carbon dioxide market's current status, size, trends, growth drivers, market analysis, forecast, and competitive landscape.

United Kingdom Carbon Dioxide Market Overview

The United Kingdom carbon dioxide market is driven by the demand for CO2 across various sectors, including the food and beverage industry, chemical production, healthcare, and enhanced oil recovery. CO2 is used in applications ranging from carbonation in beverages to refrigerants and in medical applications such as anesthesia and respiratory treatments. Additionally, industries such as metal production and food processing rely on CO2 for various processes.

The CO2 market in the UK has seen steady demand due to consistent industrial applications. The need for sustainable and eco-friendly production methods is gaining momentum, with increased focus on carbon capture and utilization technologies. As environmental regulations become stricter, the demand for CO2, produced through more sustainable means, will continue to increase.

United Kingdom Carbon Dioxide Market Size

In 2024, the United Kingdom carbon dioxide market reached a volume of 725.8 KMT. The market's steady growth is reflective of the diverse sectors that rely on CO2, including food production, medical use, and manufacturing processes. CO2's versatile applications across industries continue to make it a critical commodity in the UK's economy.

Looking ahead, the market is projected to grow at a CAGR of 1.5% from 2025 to 2034. By 2034, the market volume is expected to reach 840.5 KMT. While the growth rate might seem moderate, it reflects a stable demand for CO2, particularly in sectors that continue to expand in response to both regulatory pressures and consumer needs. The adoption of CO2 production technologies such as carbon capture and storage (CCS) will likely play a major role in increasing market efficiency and sustainability.

United Kingdom Carbon Dioxide Market Trends

The carbon dioxide market in the United Kingdom is evolving with several key trends shaping its future:

Rising Demand in the Food and Beverage Sector: CO2 is widely used for carbonation in soft drinks, beer, and other beverages. With consumers’ increasing preference for carbonated drinks, the demand for CO2 in the food and beverage industry is projected to continue growing.

Healthcare Applications: The medical industry requires high-purity CO2 for a variety of applications, including respiratory treatments and surgeries. As healthcare services continue to expand, the demand for CO2 in medical applications will remain strong.

Sustainability Initiatives: Environmental regulations and sustainability trends are pushing industries to find greener ways to produce and utilize CO2. Carbon capture and utilization (CCU) technologies, which capture CO2 from industrial emissions and convert it into usable products, are gaining traction in the UK market.

Cross-Industry Applications: Besides food, beverage, and healthcare, CO2 is used in a wide range of industries, including chemical production, water treatment, and metal production. These diverse applications make CO2 a crucial commodity for many different sectors.

Technological Advancements: New technologies, such as bio-based CO2 production and enhanced CO2 recovery processes, are expected to shape the market. These innovations will help reduce production costs and carbon emissions, making CO2 production more efficient and sustainable.

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United Kingdom Carbon Dioxide Market Segmentation

Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU

Production:
Biological
Combustion

End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others

United Kingdom Carbon Dioxide Market Growth

The United Kingdom carbon dioxide market is expected to experience moderate growth over the next decade. Key growth drivers include:

Increasing Demand for Carbonated Products: As consumer preferences shift towards carbonated beverages, there will be a growing need for CO2 in the food and beverage industry. The ongoing popularity of sodas and sparkling water, particularly in the UK, is expected to support market expansion.

Growing Healthcare Industry: The expanding healthcare sector will further drive demand for medical-grade CO2 for use in anesthesia, respiratory therapy, and other medical applications.

Industrial and Chemical Applications: The chemical industry continues to rely heavily on CO2 for manufacturing processes. The market’s growth is also bolstered by CO2’s role in industrial applications such as cooling and cleaning in the metal production and glass manufacturing sectors.

Sustainability and Environmental Concerns: The UK's commitment to reducing carbon emissions and meeting international environmental goals will stimulate innovation in CO2 production technologies, such as carbon capture and storage (CCS). These technologies will drive future growth in the CO2 market by offering a more sustainable supply.

Expanding Industrial Use: CO2 is used in several other industrial processes, including enhanced oil recovery, metal production, and water treatment. As these industries grow, so will the demand for CO2.

United Kingdom Carbon Dioxide Market Analysis

The carbon dioxide market in the United Kingdom is highly competitive and segmented by industry application. While the demand for CO2 is relatively stable, the market faces challenges such as supply chain issues, environmental regulations, and production costs. Key factors influencing the market include:

• Environmental Regulations: The UK government is increasingly focused on sustainability, which puts pressure on industries to adopt more sustainable CO2 production practices. This has led to increased investment in carbon capture technologies and renewable energy sources for CO2 production.

• Competitive Pricing and Supply Chain Disruptions: CO2 production can be impacted by supply chain disruptions, particularly in the food and beverage industry. Suppliers that can offer reliable and cost-effective solutions will have a competitive advantage in the market.

• Innovation in CO2 Production: Companies that invest in research and development for innovative CO2 production methods, such as bio-based and captured CO2, are likely to remain ahead of the curve. Technological advancements are key to enhancing market efficiency and reducing environmental impact.

United Kingdom Carbon Dioxide Market Forecast

The UK carbon dioxide market is projected to see gradual growth over the next decade, driven by steady demand from key industries like food and beverage, healthcare, and manufacturing. With a CAGR of 1.5% from 2025 to 2034, the market is expected to reach 840.5 KMT by 2034.

The market's future growth will be shaped by continued demand from existing sectors, such as food and beverage carbonation, and by the development of sustainable CO2 production technologies. As carbon capture and utilization methods gain momentum and new applications for CO2 are explored, the market will see further expansion opportunities.

Competitor Analysis

Ensus UK Limited: A prominent player in the bioethanol industry, Ensus produces CO2 as a byproduct, making it a key supplier for sectors like food processing and beverage carbonation.

BioCarbonics Ltd.: Known for its focus on environmentally sustainable CO2 production, BioCarbonics supplies CO2 to various industries, including food and beverage, healthcare, and chemical manufacturing.

Tata Chemicals Europe Limited: Part of the global Tata Chemicals group, Tata Chemicals Europe supplies high-quality CO2 for industrial applications, including food production and water treatment.

Yara International ASA: A leading chemical company that supplies CO2 for agricultural applications, Yara has a strong presence in the UK market, providing CO2 for various sectors.

Air Products PLC: Air Products is one of the largest suppliers of industrial gases, including CO2, in the UK. It serves a wide range of industries, from healthcare to food processing.

BOC Limited (Linde): As part of Linde Group, BOC is a dominant player in the UK carbon dioxide market, offering CO2 for applications ranging from medical use to industrial cooling.

Progases (UK) Ltd.: Specializing in the supply of CO2 for the food and beverage sector, Progases provides sustainable solutions for beverage carbonation and food preservation.

Others: Smaller, regional players also contribute to the market by offering specialized CO2 solutions tailored to specific industries.