United Kingdom Carbon Dioxide Market Outlook
According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market reached a value of 725.80 KMT in 2024. Driven by the increasing demand for CO2 in various industries, including food and beverage, healthcare, and industrial applications, the market is projected to grow at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a market value of 842.32 KMT by 2034.
Carbon dioxide (CO2) plays a crucial role in multiple sectors, from beverage carbonation to its utilization in healthcare, energy, and industrial applications. The demand for CO2 in the UK is influenced by growing consumption in the food and beverage industry, alongside increasing interest in carbon capture technologies aimed at reducing the carbon footprint of industrial processes. As sustainability initiatives continue to take precedence and environmental regulations tighten, CO2 usage will increasingly be guided by innovative technologies focused on reducing emissions while maximizing its potential in new applications.
Market Drivers
Food and Beverage Industry: The food and beverage industry remains the largest consumer of carbon dioxide in the United Kingdom. CO2 is extensively used in the carbonation of soft drinks, sparkling water, and alcoholic beverages such as beer and soda. This segment is bolstered by a consistent consumer preference for carbonated beverages, with demand rising for both traditional and new-age fizzy drinks. CO2’s essential role in beverage carbonation makes it a fundamental ingredient, and as consumer interest in low-sugar and non-alcoholic beverages continues to grow, CO2 demand within this sector will remain robust.
Additionally, CO2 is widely used in modified atmosphere packaging (MAP) for food preservation, particularly for fresh produce, meat, and baked goods. By replacing oxygen with CO2 in packaging, MAP extends the shelf life of products, reducing waste and ensuring freshness. The increasing popularity of packaged food products and the growing demand for convenience foods are expected to drive further demand for CO2 in this sector.
Healthcare Sector: The healthcare sector is another significant contributor to the United Kingdom’s CO2 market. Carbon dioxide is employed in a variety of medical applications, such as in laparoscopic surgeries, where it is used as an insufflation gas to inflate the abdomen, providing more space for surgical instruments. This minimally invasive approach is gaining traction as it offers patients a quicker recovery time, making CO2 a valuable component in modern medical procedures.
Additionally, CO2 is utilized in medical gas mixtures for anesthesia and respiratory care. With an aging population and a rise in respiratory diseases, the demand for CO2 in medical treatments is expected to continue expanding. The healthcare industry’s increasing reliance on CO2 for these essential applications will continue to drive its market growth.
Carbon Capture and Utilization (CCU) Technologies: As part of the United Kingdom’s commitment to achieving net-zero carbon emissions by 2050, the development and adoption of carbon capture and utilization (CCU) technologies have gained significant momentum. CCU technologies involve capturing carbon dioxide emissions from industrial processes, power generation, or other sources, and repurposing it for valuable uses.
Captured CO2 can be utilized in a range of applications, including the production of synthetic fuels, chemicals, and even construction materials like carbonates. The government’s focus on decarbonization and the push for low-carbon technologies has led to investments in CCU infrastructure. These technologies not only help reduce greenhouse gas emissions but also create new revenue streams from CO2, increasing its demand in the UK market.
Industrial Applications: CO2 has widespread industrial applications, from chemical production to welding and metalworking. It is used in chemical manufacturing, such as the production of urea, methanol, and other industrial chemicals. The increasing demand for chemicals in various industries, including automotive, electronics, and pharmaceuticals, is expected to keep CO2 in high demand as a raw material.
In welding, CO2 serves as a shielding gas, preventing oxidation and improving weld quality. As the manufacturing sector continues to evolve with the growth of advanced technologies, CO2 will remain an integral part of industrial processes, particularly in sectors like construction, automotive, and electronics manufacturing.
Energy Sector: The energy sector is increasingly recognizing CO2’s potential role in enhancing oil recovery. CO2 is injected into oil reservoirs in a process known as enhanced oil recovery (EOR), where it helps extract additional oil from mature fields. As the demand for energy remains high, particularly in transportation and industrial applications, CO2 will continue to play a crucial role in maximizing oil recovery, which, in turn, will drive demand for CO2 in the energy sector.
Furthermore, there is growing interest in using CO2 in the production of biofuels. Research into algae-based biofuels, which use CO2 as a feedstock, holds promise for reducing the reliance on traditional fossil fuels. As the UK moves towards renewable energy sources, the role of CO2 in energy production is set to increase.
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United Kingdom Carbon Dioxide Market Segmentation
The United Kingdom carbon dioxide market can be divided based on source, production, 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 key 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 Market
Supply Chain Volatility: The supply of CO2 in the United Kingdom is vulnerable to fluctuations in the industrial processes from which it is derived. CO2 is often produced as a by-product in industries such as ammonia and hydrogen production, and any disruptions in these processes—due to maintenance, supply chain issues, or unanticipated shutdowns—can lead to temporary shortages.
For example, if a large-scale ammonia plant experiences an unplanned closure, it could have a significant impact on CO2 availability in the market. This, in turn, could lead to price volatility or disruptions in sectors such as beverage production and healthcare, which rely on a steady supply of CO2.
Environmental Regulations and Sustainability Concerns: While CO2 is essential in various industrial processes, its role in climate change has raised environmental concerns. The United Kingdom Carbon Dioxide Market ambitious environmental regulations, including the goal of achieving net-zero emissions by 2050, are placing additional pressure on industries to reduce CO2 emissions. In response, industries are increasingly adopting carbon capture and storage (CCS) technologies, which involve capturing CO2 emissions from industrial activities and storing them underground or repurposing them for other uses.
This focus on sustainability means that CO2 producers and users must navigate a complex regulatory landscape to ensure compliance. Although carbon capture and utilization technologies present a growth opportunity for the CO2 market, the costs associated with implementing these technologies may act as a challenge for industries looking to transition to low-carbon solutions.
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