United Kingdom Carbon Dioxide Market Trends, Size, Share and Industry Report | 2034

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. Driven by the increasing demand for CO2 in various industries, such as food and beverage, healthcare, and industrial applications, the market is expected to grow at a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034, reaching a volume of 842.32 KMT by 2034.

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Carbon dioxide (CO2) is a colorless, odorless gas that is widely used across several industries due to its versatile properties. It is primarily utilized in the food and beverage sector for carbonating drinks, in healthcare for medical treatments like insufflation in surgeries, and in various industrial processes, including oil recovery and fire extinguishing. The increasing focus on sustainability, evolving technologies, and growing end-use applications are all expected to contribute to the market's growth in the coming decade.

Key Drivers of Growth

The growth of the United Kingdom carbon dioxide market is being influenced by several key factors, including the increasing demand from the food and beverage sector, advancements in industrial applications, and heightened interest in sustainable practices.

Growth in the Food and Beverage Sector: The food and beverage industry is the largest consumer of carbon dioxide in the United Kingdom, with its primary use being in the carbonation of soft drinks, beer, and other beverages. Carbon dioxide is also used as a preservative in modified atmosphere packaging (MAP) to extend the shelf life of food products by inhibiting the growth of bacteria and molds.

As consumer preferences shift towards carbonated beverages and the demand for convenience foods rises, the consumption of CO2 in the food and beverage sector is expected to increase significantly. Additionally, the expansion of the craft beer market and the growing popularity of fizzy, flavored water drinks are contributing to the rise in CO2 consumption in this sector.

Moreover, the shift towards plant-based and sustainable foods has also opened new opportunities for United Kingdom carbon dioxide market, particularly in the production of plant-based dairy alternatives and frozen foods.

Medical and Healthcare Applications: In the healthcare industry, carbon dioxide is used in a variety of medical procedures, including as a respiratory stimulant in certain medical treatments and as a cooling agent in cryotherapy. It is also used for insufflation in laparoscopic surgeries, where CO2 is introduced into the body cavity to create a working space for surgical instruments.

The aging population in the United Kingdom is expected to drive the demand for healthcare-related CO2 applications. As the number of surgical procedures and the demand for medical treatments rise, the use of carbon dioxide in the medical field is anticipated to grow.

Industrial Applications and Technological Advancements: Carbon dioxide plays a crucial role in various industrial applications, including its use in oil and gas recovery, metal fabrication, and chemical processing. In the oil and gas industry, CO2 is injected into reservoirs to enhance oil recovery. Additionally, CO2 is used in the production of chemicals like urea and methanol, as well as in water treatment processes.

Technological advancements, such as the development of new methods for capturing and storing CO2 (carbon capture and storage, or CCS), have gained traction as part of the United Kingdom's efforts to reduce its carbon footprint and achieve net-zero emissions by 2050. This emphasis on sustainability and the potential use of CO2 in a circular economy is expected to drive further innovation and demand in industrial sectors.

Sustainability and Environmental Concerns: As part of the United Kingdom's commitment to reducing greenhouse gas emissions, there is an increasing focus on the sustainable production and use of carbon dioxide. Carbon capture and storage (CCS) technologies are expected to play a significant role in mitigating the environmental impact of CO2 emissions. The ability to capture CO2 from industrial processes and store it underground or repurpose it for other uses presents an opportunity for the carbon dioxide market to contribute to climate change mitigation efforts.

Furthermore, the development of carbon dioxide utilization technologies (CO2U), such as the conversion of CO2 into valuable chemicals or fuels, is gaining momentum. These innovations are expected to drive the demand for CO2 in a more sustainable and environmentally friendly manner.

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United Kingdom Carbon Dioxide Market 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 and Opportunities

While the United Kingdom carbon dioxide market presents significant growth potential, it also faces certain challenges that need to be addressed.

Supply Chain Constraints and Costs: One of the primary challenges facing the United Kingdom carbon dioxide market is the potential for supply chain disruptions. Carbon dioxide production relies on the availability of natural gas, as CO2 is often a byproduct of natural gas processing. Any disruptions in natural gas supply or production can lead to CO2 shortages, which may affect industries reliant on a steady supply of the gas. Furthermore, fluctuating CO2 prices can impact market dynamics, as industries may face cost challenges in securing CO2 at competitive rates.

Regulatory Pressures and Sustainability Goals: The United Kingdom's ambitious sustainability and net-zero carbon goals may create regulatory challenges for the carbon dioxide market. Stricter environmental regulations and increased scrutiny of CO2 emissions from industries may lead to additional costs for businesses. However, these challenges can also present opportunities for market players to invest in sustainable CO2 production technologies, such as carbon capture and utilization (CCU) systems, and gain a competitive edge in the market.

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