Industrial Carbon Dioxide Market Set to Grow at 3.2% CAGR, Hitting US$6.9 Billion by 2032 - Persistence Market Research

The global industrial carbon dioxide market is witnessing consistent expansion due to its increasing utilization across multiple industries. Industrial carbon dioxide is a vital input in sectors such as food and beverage, oil and gas, chemicals, and healthcare.

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It serves various purposes including carbonation, enhanced oil recovery, refrigeration, and chemical synthesis. With rising emphasis on sustainable industrial operations and circular carbon usage, the demand for purified and reusable carbon dioxide is gaining significant traction. The steady development of carbon capture and utilization technologies further enhances the role of industrial CO2 as both a byproduct and a valuable raw material for industrial processes.

Market Size and Growth Outlook

According to Persistence Market Research, the global industrial carbon dioxide market size is likely to value at US$ 5.5 billion in 2025 and is projected to reach US$ 6.9 billion by 2032, growing at a CAGR of 3.2 percent between 2025 and 2032. The market is expanding due to rising demand across key sectors such as food and beverage for carbonation and oil and gas for enhanced oil recovery, supported by advancements in carbon capture and utilization technologies that transform CO2 into valuable products. This growth is underpinned by industrial processes generating CO2 as a byproduct from natural gas processing and ammonia production, which supply reliable volumes for purification and distribution.

This consistent growth highlights the maturity of the industrial CO2 market, with stable demand from established industries. However, emerging technologies related to carbon capture and conversion are expected to open new opportunities for innovation and expansion. Increasing environmental regulations and the push for net-zero emissions are further contributing to the utilization of CO2 in various circular economy initiatives.

Key Market Drivers

The industrial carbon dioxide market is primarily driven by expanding industrial applications and ongoing innovations in carbon management. Several major drivers are shaping the industry landscape.

Growing Demand in Food and Beverage Industry
The food and beverage sector is the largest consumer of industrial CO2. It is extensively used for carbonating soft drinks, beer, and sparkling water, and for preserving freshness in packaged foods. Carbon dioxide also plays a crucial role in freezing, chilling, and modified atmosphere packaging, helping extend the shelf life of perishable items. The rising global consumption of ready-to-drink beverages and processed food products is directly increasing the demand for CO2. In addition, the expansion of beverage production facilities in emerging economies is further boosting the market.

Enhanced Oil Recovery Applications
The oil and gas industry is another major contributor to the demand for industrial CO2. Enhanced oil recovery (EOR) uses CO2 injection to increase crude oil extraction from mature reservoirs. This method not only enhances recovery efficiency but also helps in the geological sequestration of CO2. With increasing global energy needs and declining conventional reserves, the adoption of CO2-based EOR is expected to remain strong in the coming years.

Technological Advancements in Carbon Capture and Utilization
Innovations in carbon capture, utilization, and storage technologies are transforming the way industries view CO2. Instead of treating it as waste, many companies are now investing in technologies that convert captured CO2 into fuels, polymers, and other valuable products. This shift toward circular carbon systems is creating new markets for purified industrial CO2. Advancements in chemical absorption, membrane separation, and cryogenic purification methods have made CO2 capture more cost-effective and efficient.

Industrial CO2 is commonly produced as a byproduct of processes such as ammonia production, ethanol fermentation, and natural gas processing. These sources provide steady and economically viable supplies of CO2 for purification and distribution. The growing global demand for fertilizers and biofuels ensures a continuous stream of byproduct CO2, stabilizing the industrial supply chain and supporting market growth.

Beyond traditional industries, CO2 is finding new applications in areas such as healthcare, metallurgy, water treatment, and greenhouse agriculture. In healthcare, it is used in medical-grade gas mixtures, cryotherapy, and laboratory equipment. In the metal fabrication industry, CO2 is utilized as a shielding gas for welding and cutting. Furthermore, its use in pH control for water and wastewater treatment and in controlled-environment agriculture for plant growth enhancement adds to its broad industrial relevance.

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Market Segmentation by Application

The global industrial CO2 market can be segmented based on its key end-use applications, each contributing uniquely to the overall market landscape.

Food and Beverage Segment
This segment holds the largest market share due to the widespread use of CO2 in beverage carbonation and food preservation. The increasing popularity of carbonated soft drinks, sparkling water, and alcoholic beverages is significantly boosting demand. Food processing companies also rely on CO2 for chilling, freezing, and packaging operations, which help maintain product quality and extend shelf life.

Oil and Gas Segment
Enhanced oil recovery operations depend heavily on large volumes of CO2 for injection into depleted reservoirs. The process improves extraction efficiency and simultaneously supports CO2 sequestration. The growing implementation of carbon capture systems near oil fields ensures a continuous supply of industrial CO2 for EOR projects.

Chemicals and Manufacturing Segment
Industrial CO2 is a critical raw material for producing urea, methanol, and other chemical compounds. It is also used as a process gas in various manufacturing activities such as casting, molding, and metal fabrication. The increasing demand for fertilizers and basic chemicals across industrial economies continues to support this segment.

Healthcare and Cryogenics Segment
In healthcare, CO2 finds use in medical-grade gas mixtures for surgical procedures and respiratory therapies. Solid CO2, commonly known as dry ice, is extensively used for cold storage, biological specimen preservation, and vaccine transport. The global expansion of healthcare infrastructure and biopharmaceutical production facilities is driving this segment's growth.

Agriculture and Environmental Applications
CO2 enrichment in greenhouses improves crop yields and accelerates plant growth. As controlled-environment agriculture and hydroponic systems gain popularity, the need for pure CO2 supply in agricultural applications is expected to rise. Additionally, environmental applications such as wastewater treatment and emission control also contribute to the demand.

Regional Insights

The industrial carbon dioxide market exhibits distinctive regional trends driven by industrialization levels, infrastructure development, and technological advancements.

North America
North America holds a dominant position in the global market, supported by strong demand from the food and beverage sector and well-established oil and gas operations. The presence of leading industrial gas manufacturers and advanced carbon capture projects strengthens the regional market. The United States is a major producer and consumer of industrial CO2, with enhanced oil recovery and beverage carbonation leading its application segments.

Europe
Europe's industrial CO2 market is influenced by stringent environmental regulations and growing emphasis on sustainability. The region's robust food processing and beverage industries remain key consumers of CO2. At the same time, ongoing investments in carbon capture, utilization, and storage technologies are creating opportunities for sustainable CO2 production and use. Countries such as Germany, the United Kingdom, and the Netherlands are at the forefront of developing circular carbon initiatives.

Asia Pacific
Asia Pacific is emerging as the fastest-growing regional market. Rapid industrialization, increasing consumption of processed food and beverages, and expanding chemical and manufacturing sectors are major growth contributors. China, India, Japan, and South Korea are key markets, with significant investments in industrial gas infrastructure and CCU technologies. Growing awareness of environmental sustainability is also promoting CO2 recovery and reuse in the region.

Latin America, Middle East, and Africa
These regions are witnessing gradual growth in industrial CO2 consumption, primarily driven by oil and gas operations, food processing, and agricultural expansion. Countries in the Middle East are adopting CO2-based EOR techniques, while Latin American nations such as Brazil and Mexico are expanding beverage production capacities. The presence of natural gas processing facilities ensures a reliable CO2 supply base for industrial usage.

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Competitive Landscape

The industrial carbon dioxide market is characterized by the presence of major multinational corporations and regional suppliers. Leading players include Air Liquide, Linde plc, Messer Group, and Taiyo Nippon Sanso. These companies dominate the market through extensive distribution networks, strong production capabilities, and technological innovations.

Most of these companies are focusing on the following strategic priorities:
• Expanding CO2 recovery and purification facilities to strengthen supply reliability
• Investing in infrastructure for liquefaction, transport, and storage
• Collaborating with oil and gas companies for EOR projects and CCU initiatives
• Introducing high-purity and specialty CO2 grades for emerging industries
• Expanding into high-growth regions such as Asia Pacific and Latin America
Strategic mergers, acquisitions, and partnerships are also common, enabling companies to enhance their global presence and optimize their production capacity.

Future Outlook

The industrial carbon dioxide market is expected to maintain steady growth through 2032, supported by continuous demand from established industries and the emergence of new applications. The increasing adoption of carbon capture and utilization technologies will redefine the market's role in sustainable industrial development. While mature markets in North America and Europe will see stable growth, the highest potential lies in rapidly industrializing regions such as Asia Pacific and Latin America.

Future growth will also depend on innovations in CO2 conversion and storage technologies, the development of efficient transportation networks, and favorable policy frameworks that promote circular carbon practices. Companies that adapt to evolving environmental regulations and invest in sustainability-driven technologies will be well-positioned to capitalize on emerging opportunities.

Conclusion

The global industrial carbon dioxide market represents a vital link between traditional manufacturing and the emerging low-carbon economy. With an estimated value of US$ 5.5 billion in 2025 and expected to reach US$ 6.9 billion by 2032, the market's growth trajectory is steady and promising. Strong demand from the food and beverage and oil and gas sectors, along with the rapid advancement of carbon capture and utilization technologies, will continue to shape the industry's evolution. As the world transitions toward more sustainable industrial practices, the role of industrial CO2 will expand beyond its traditional uses, transforming into a key enabler of the circular economy.

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