GCC Liquid Carbon Dioxide (CO2) Market to Reach USD US$564.52 million by 2032 | Strong 10.6% CAGR | Saudi Arabia Leads with 40% Share | Key Players: Air Products, Gulf Cryo, Linde, SABIC, NIGP

GCC Liquid Carbon Dioxide (CO2) Market Overview

The GCC liquid carbon dioxide (CO2) market reached a value of US$ 253.7 million in 2024 and is projected to grow to US$ 564.52 million by 2032, expanding at a CAGR of 10.6% during the forecast period 2025-2032. The market is experiencing steady growth, driven by rapid industrialization, low-carbon initiatives, and economic diversification strategies across the Gulf Cooperation Council (GCC) countries. Rising demand from the food & beverage, healthcare, chemicals, and logistics sectors, coupled with expanding carbon capture and utilization (CCU) activities, is significantly boosting the requirement for high-purity liquid CO2 in the region.

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Under Saudi Arabia's Vision 2030, large-scale investments in petrochemical clusters and industrial hubs such as Jubail Industrial City are propelling demand. These zones host refineries, fertilizer plants, and steel industries that both generate and consume CO2, leading to the increased installation of CO2 liquefaction units and distribution pipelines to support on-site utilization and regional supply networks. In a notable development, Gulf Cryo inaugurated the first carbon capture plant for the merchant market in Saudi Arabia's Western Region in 2024. Located at Petro Rabigh's MEG plant, this facility was established under a 20-year agreement with the Saudi Aramco-Sumitomo joint venture. Equipped with two advanced compressors, it produces 300 metric tons of liquid CO2 per day, cutting approximately 100,000 metric tons of CO2 emissions annually. This project marks a significant milestone in advancing the region's carbon circular economy and sustainable industrial operations.

Recent Developments:

✅ October 2025: The UAE inaugurated its first high-purity CO2 capture plant in Ras Al Khaimah, where Gulf Cryo began capturing emissions from RAK Ceramics to supply industrial-grade CO2 across multiple sectors, strengthening regional CO2 supply infrastructure.

✅ September 2025: Gulf countries, including Saudi Arabia, the UAE, and Qatar, announced expanded CCUS (Carbon Capture, Utilization, and Storage) programs aimed at capturing millions of tons of CO2 annually by 2030. These initiatives are designed to support industrial decarbonization and ensure a stable supply of liquid CO2 for industrial use.

✅ June 2025: Saudi Arabia launched new CCUS infrastructure projects within the Jubail Industrial Hub, targeting the capture and storage of up to 9 million tons of CO2 annually by 2027. The initiative supports industrial emissions reduction while enhancing liquid CO2 availability for petrochemical and manufacturing sectors.

Mergers & Acquisitions:

✅ November 2025: Gulf Cryo acquired a majority stake in a regional industrial gas distributor in the UAE to expand its CO2 capture, purification, and distribution network. The acquisition strengthens Gulf Cryo's logistics capabilities and enhances its reach in the food, healthcare, and industrial sectors.

✅ September 2025: Saudi Aramco and Sumitomo Chemical deepened their partnership under the Petro Rabigh expansion phase, integrating carbon capture and liquefaction technology into existing petrochemical operations to boost regional CO2 utilization and sustainability targets.

✅ July 2025: Air Products Middle East announced the acquisition of a local CO2 recovery firm in Oman, enhancing its access to captured CO2 from ammonia and methanol plants for downstream applications such as food processing and enhanced oil recovery (EOR).

✅ May 2025: Linde PLC entered a strategic partnership with QatarEnergy to co-develop advanced CO2 purification and liquefaction systems at Ras Laffan Industrial City. This collaboration supports Qatar's industrial decarbonization initiatives and expands Linde's merchant liquid CO2 capacity in the GCC.

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Key Players:
Air Products and Chemicals | Gulf Cryo | Arabia Gas Company | National Industrial Gas Plants (NIGP) | Sharjah Oxygen Company | SABIC | Linde Plc | Buzwair Industrial Gases

Key Highlights:

• Air Products and Chemicals - Holds an estimated 18.5% share, driven by large-scale CO2 capture, purification, and liquefaction projects across Saudi Arabia and the UAE. The company's integration of carbon management technologies with hydrogen production facilities enhances its sustainability and industrial gas portfolio.

• Gulf Cryo - Holds an estimated 16.8% share, leading in carbon capture, purification, and merchant CO2 supply. The company's new carbon capture plant at Petro Rabigh and expanded GCC operations position it as a regional frontrunner in sustainable CO2 solutions.

• Arabia Gas Company - Holds an estimated 13.4% share, specializing in bulk CO2 distribution and supply to food, beverage, and manufacturing industries. The company's investments in cryogenic storage and logistics networks strengthen regional availability.

• National Industrial Gas Plants (NIGP) - Holds an estimated 12.1% share, with operations focused on high-purity CO2 and industrial gases for refineries, petrochemical facilities, and food-grade applications.

• Sharjah Oxygen Company (SOC) - Holds an estimated 10.6% share, recognized for its diversified gas portfolio and growing CO2 production capacity for healthcare and food-processing industries across the UAE.

• SABIC - Holds an estimated 9.8% share, integrating CO2 recovery and reuse technologies within petrochemical complexes. SABIC's sustainability initiatives align with Saudi Arabia's Vision 2030 goals to lower carbon intensity in industrial production.

• Linde Plc - Holds an estimated 9.2% share, supported by advanced cryogenic and liquefaction technologies. Strategic partnerships with regional oil & gas players enable Linde to expand its CO2 purification and supply capabilities.

• Buzwair Industrial Gases - Holds an estimated 9.6% share, with strong presence in Qatar and the broader GCC, focusing on the production, storage, and distribution of food- and industrial-grade liquid CO2 for end users in manufacturing and energy sectors.

Market Segmentation:

By Application:
➥ Food & Beverage - Dominates the market with a 35% share, driven by extensive use of liquid CO2 for carbonation, chilling, freezing, and modified atmosphere packaging (MAP). Rising demand for carbonated beverages, frozen foods, and food preservation in Saudi Arabia, the UAE, and Qatar continues to fuel this segment's growth.

➥ Healthcare and Pharmaceuticals - Holds an 18% share, supported by the use of high-purity CO2 in cryotherapy, medical device sterilization, and laboratory applications. The expansion of healthcare infrastructure and medical gas supply networks across GCC nations is driving this segment.

➥ Welding and Metal Fabrication - Accounts for 15% of the market, as liquid CO2 serves as a shielding gas in metal cutting, welding, and fabrication industries. Growing construction, shipbuilding, and industrial manufacturing sectors in the region are boosting demand.

➥ Agriculture - Represents 10% of the market, where CO2 is used to enhance greenhouse plant growth and crop yields. The adoption of CO2-enriched cultivation systems in arid GCC environments supports controlled-environment agriculture initiatives.

➥ Chemical Industry - Holds a 12% share, with CO2 used as a feedstock for urea, methanol, and other chemical synthesis processes. Expanding petrochemical and fertilizer industries-particularly in Saudi Arabia and Qatar-are key contributors.

➥ Cement Industry - Contributes 10% to the market, leveraging CO2 in carbonation curing processes and carbon utilization for sustainable cement production. Increasing focus on reducing carbon footprints in heavy industries is accelerating adoption.

Regional Insights:

Saudi Arabia - Leads the GCC liquid CO2 market with an estimated 40% share, driven by expanding industrial hubs such as Jubail Industrial City and Yanbu, where large-scale CO2 capture, utilization, and storage (CCUS) projects are integrated into refineries, petrochemical, and fertilizer plants. Government initiatives under Vision 2030, emphasizing carbon circular economy and sustainable manufacturing, are accelerating investments in CO2 liquefaction and distribution infrastructure.

United Arab Emirates (UAE) - Holds around 25% share, supported by growing adoption of carbon capture projects and demand from food, beverage, and healthcare sectors. The UAE's first merchant CO2 capture plant in Ras Al Khaimah and ongoing sustainability programs under the UAE Net Zero 2050 initiative are expanding the domestic CO2 supply network.

Qatar - Accounts for 15% of the market, anchored by its strong petrochemical and natural gas industries. The Ras Laffan Industrial Complex serves as a major hub for CO2 recovery and utilization in enhanced oil recovery (EOR) and chemical production. Qatar's investments in CCUS infrastructure are driving new liquefaction capacities and export opportunities.

Oman - Represents approximately 10% share, driven by growing CO2 recovery from ammonia and methanol plants and increasing use in food processing and industrial applications. The government's Oman Vision 2040 is promoting low-carbon industries, spurring investment in CO2 purification technologies.

Kuwait and Bahrain - Together contribute around 10% of the GCC liquid CO2 market. In Kuwait, rising demand from the food & beverage and welding industries is supporting market growth, while Bahrain is witnessing increased CO2 bottling and regional export activity through cross-border industrial gas partnerships.

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Market Dynamics:

Surging Demand from the Food & Beverage Industry
The GCC liquid CO2 market is experiencing strong momentum due to the growing demand from the food and beverage industry, which increasingly relies on liquid CO2 for carbonation, chilling, freezing, and modified atmosphere packaging (MAP). Regional governments are intensifying efforts to enhance domestic food production, ensure food security, and strengthen cold chain logistics, all of which are contributing to the expansion of CO2 utilization infrastructure.

In the UAE, where only about 0.7% of land is arable and over 85% of food is imported, the government is addressing food security challenges through strategic initiatives and public-private collaborations. The National Food Security Strategy 2051 emphasizes sustainable local production driven by innovation and technology to build resilient food systems.

A major initiative supporting this goal is the Food Tech Valley, launched in 2023 as a global hub for agriculture and food technology. The project integrates the entire food ecosystem linking farmers, researchers, entrepreneurs, and businesses with state-of-the-art infrastructure, research facilities, and innovation programs. These initiatives are increasing domestic demand for high-purity liquid CO2 used in food processing, preservation, and packaging, making the food and beverage sector one of the key growth drivers in the GCC liquid CO2 market.

Fluctuating Feedstock Supply and Quality
Despite the positive outlook, the GCC liquid CO2 market faces challenges related to feedstock volatility and inconsistent quality. Liquid CO2 production in the region largely depends on by-products from hydrocarbon-intensive industries such as petrochemicals, ammonia, ethanol, and hydrogen production. Any disruptions or fluctuations in these upstream sectors-caused by maintenance shutdowns, technical outages, or production adjustmentscan directly affect CO2 availability, purity, and consistency.

In Saudi Arabia, for example, temporary halts in natural gas processing and oil refining operations have been known to reduce CO2 recovery rates. Since CO2 is a secondary by-product, its collection is deprioritized during such events, leading to supply shortages for downstream users. In 2022, several plant maintenance periods in the Eastern Province resulted in reduced liquid CO2 supply to food and beverage processors, causing delays and operational inefficiencies.

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