United Kingdom Carbon Dioxide Market Size, Share & Growth 2025-2034

The United Kingdom carbon dioxide market is a vital component of the industrial gas sector, contributing significantly to various industries including food and beverage, chemicals, agriculture, and more. With a market volume of 725.8 KMT (kilotons) in 2024, the UK carbon dioxide market is poised for steady growth, driven by rising demand across key sectors and technological advancements in CO2 production. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 1.5% during the forecast period of 2025-2034, reaching a volume of 840.5 KMT by 2034. This blog explores the UK carbon dioxide market’s size, growth, trends, forecasts, and the competitive landscape.

United Kingdom Carbon Dioxide Market Overview

The carbon dioxide market in the United Kingdom has experienced steady demand growth due to its wide application across various industries. CO2 is essential for industries like food processing, beverage production, chemical manufacturing, and even agriculture, where it plays a role in enhancing plant growth through controlled environment agriculture (CEA). As the UK transitions toward a more sustainable economy, the carbon dioxide market is expected to see increased adoption due to both industrial needs and innovations in CO2 utilization.

The increasing demand for CO2 in the food and beverage sector, particularly for carbonated drinks, and the rising need for CO2 in healthcare for medical applications, are key drivers of this market. Additionally, industries like oil and gas and the power generation sector use CO2 for enhanced oil recovery (EOR) and as part of carbon capture and storage (CCS) technologies.

United Kingdom Carbon Dioxide Market Size

In 2024, the UK carbon dioxide market is valued at 725.8 KMT. This volume reflects the growing consumption of CO2 across multiple industries. As the demand continues to expand, this market is expected to see a positive growth trajectory, with an estimated volume of 840.5 KMT by 2034. The market’s growth is primarily driven by industrial sectors, increasing urbanization, and rising awareness about the environmental impact of CO2 emissions.

The industrial demand for CO2 is largely concentrated in sectors like food and beverage production, where it is used for carbonation, refrigeration, and in packaging to extend shelf life. Other significant sectors include chemicals (for production of ammonia and urea) and healthcare, where CO2 is used for medical purposes like respiratory treatments and in procedures like laparoscopic surgeries.

United Kingdom Carbon Dioxide Market Trends

Several key trends are shaping the UK carbon dioxide market. These trends highlight a shift towards sustainability, efficiency, and technological advancements:

Increased Demand from Food & Beverage Sector: As consumer demand for carbonated drinks rises and the food packaging industry grows, the demand for CO2 in this sector continues to increase.

Sustainability Initiatives: The growing focus on reducing greenhouse gas emissions and adopting carbon capture technologies is pushing the adoption of CO2 in industries like enhanced oil recovery and greenhouse cultivation.

Medical Use Expansion: Carbon dioxide’s role in medical technologies, including its use in anesthetics and medical equipment sterilization, is gaining traction. This is particularly important in the post-pandemic era as healthcare services focus on efficiency.

Technological Advancements in Production: New methods of CO2 production, such as direct air capture (DAC) and bio-based CO2 from renewable sources, are helping reduce costs and improve environmental sustainability.

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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 UK carbon dioxide market is expected to grow steadily over the forecast period (2025-2034). The market’s CAGR of 1.5% reflects a consistent increase in demand driven by both industrial applications and technological developments. Growth is anticipated in sectors like food and beverage, healthcare, and chemical manufacturing, where CO2 plays an essential role in production processes.

Moreover, the UK’s ongoing commitment to reducing its carbon footprint and reliance on fossil fuels is expected to increase the adoption of CO2 in new applications, including in carbon capture and storage initiatives. Over the next decade, government policies aimed at decarbonizing industry and improving sustainability will provide a further boost to the market.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is influenced by several factors, including supply chain challenges, demand from various industries, and technological innovations. CO2 supply is primarily sourced from natural gas extraction, but other methods such as capturing CO2 from industrial processes are becoming increasingly important.

The demand for CO2 is likely to increase as industries like food and beverage manufacturing, where carbonation and preservation are key, continue to expand. Moreover, the agricultural sector’s use of CO2 for enhanced plant growth is expected to grow, as controlled-environment agriculture becomes more mainstream in the UK.

However, the market also faces challenges, including fluctuating natural gas prices, which could affect CO2 production costs, and regulatory hurdles related to environmental impacts. These factors need to be monitored closely by market participants.

United Kingdom Carbon Dioxide Market Forecast

The UK carbon dioxide market is expected to reach a volume of 840.5 KMT by 2034, growing at a CAGR of 1.5% during the forecast period. This growth will be fueled by rising industrial demand, particularly in the food and beverage, chemical, and healthcare sectors. Innovations in CO2 production methods and carbon capture technologies will likely reduce costs, creating new opportunities for CO2 use in industrial and environmental applications.

By 2034, the market will likely see a shift toward more sustainable practices, with increased adoption of CO2 from renewable sources and more widespread use in carbon capture and storage initiatives.

Competitor Analysis in the United Kingdom Carbon Dioxide Market

The UK carbon dioxide market is competitive, with several key players actively involved in CO2 production and distribution. Some of the leading companies in the market include:

Ensus UK Limited: A major player in the UK’s CO2 market, Ensus produces and supplies high-quality CO2 for various industrial applications, including food and beverage and industrial gas markets.

BioCarbonics Ltd.: A leader in the UK CO2 market, BioCarbonics is focused on producing CO2 from renewable sources, with a strong emphasis on sustainability and reducing environmental impact.

Tata Chemicals Europe Limited: Part of Tata Group, this company is a key supplier of CO2 and other industrial gases in the UK. Their expertise in chemical manufacturing gives them a significant market presence.

Yara International ASA: Known for its involvement in agricultural and industrial gases, Yara’s CO2 production is vital for applications in both agriculture and food processing.

Air Products PLC: A global leader in the supply of industrial gases, Air Products is a major supplier of CO2 in the UK, serving sectors like food, healthcare, and chemical manufacturing.

BOC Limited (Linde): A division of Linde Group, BOC Limited provides a range of industrial gases, including CO2, to numerous sectors, with a focus on industrial, healthcare, and food processing applications.

Others: Other companies compete not only on the volume of CO2 supplied but also on technological innovations and sustainability initiatives. Many of them are investing in new CO2 production methods to reduce costs and improve environmental performance.