United Kingdom Carbon Dioxide Market Size, Share, Trends & Growth | 2034

Since CO2 is a critical component in sectors like food and beverage production and healthcare, any supply disruptions could result in production halts or delays in medical procedures.

United Kingdom Carbon Dioxide Market Size, Share, Trends & Growth | 2034

United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size achieved a value of 725.80 KMT in 2024. Fueled by increasing demand across various sectors such as 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 value of 842.32 KMT by 2034.

Carbon dioxide is an essential industrial gas with a broad range of applications, including carbonation in beverages, food preservation, medical uses, and industrial manufacturing. The market is driven by the growing need for CO2 in the food and beverage sector, technological advancements in CO2 capture and utilization, and the healthcare industry's increasing demand for medical-grade CO2. Additionally, with the United Kingdom's commitment to reducing carbon emissions, the development of carbon capture and storage (CCS) technologies and the transition to a low-carbon economy is expected to play a significant role in shaping the future of the CO2 market.

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Key Drivers of Market Growth

Surging Demand in the Food and Beverage Industry: The food and beverage industry is one of the largest consumers of carbon dioxide in the United Kingdom. CO2 is widely used for the carbonation of soft drinks, beer, and sparkling water, creating the effervescent bubbles consumers enjoy. The rising popularity of carbonated beverages, coupled with the increased demand for low-sugar and low-calorie drinks, is driving significant growth in the CO2 market.

In addition to carbonation, CO2 plays a crucial role in food preservation. Modified atmosphere packaging (MAP) is a technology that extends the shelf life of perishable goods such as fruits, vegetables, meats, and ready-to-eat meals. By displacing oxygen and creating an environment rich in CO2, MAP inhibits the growth of microorganisms that cause spoilage. As consumer demand for fresh and longer-lasting foods continues to rise, CO2 is becoming an indispensable component in food packaging and preservation.

The ongoing trend toward healthier diets, including plant-based products and functional beverages, is expected to further drive the demand for CO2 in the food and beverage industry, solidifying its role as a key growth driver in the market.

Medical and Healthcare Applications: The healthcare industry is another significant contributor to the demand for carbon dioxide in the United Kingdom. CO2 has vital medical applications, especially in surgeries and treatments. It is commonly used in laparoscopy (minimally invasive surgery) as an insufflation gas to inflate the abdomen, creating space for the surgeon to operate more effectively. Similarly, CO2 is used in certain endoscopic procedures.

In addition to its role in medical procedures, CO2 is used in the production of medical-grade aerosols, such as inhalers and respiratory medications. As the UK’s aging population continues to grow, and the prevalence of respiratory diseases increases, the demand for medical-grade CO2 is expected to rise. This will further drive the market's growth, especially as the healthcare industry increasingly relies on CO2 for patient care and treatment.

Industrial Applications and Enhanced Oil Recovery: Carbon dioxide’s industrial applications are diverse, ranging from chemical production to refrigeration. CO2 is used extensively in the production of chemicals such as methanol and urea, which are vital in the manufacture of fertilizers, plastics, and other industrial products. The UK’s strong chemical manufacturing sector continues to drive demand for CO2 in this area.

One of the key industrial applications of CO2 is in enhanced oil recovery (EOR). In this process, CO2 is injected into oil reservoirs to increase pressure, improving oil extraction efficiency. Although the UK’s oil and gas industry has seen fluctuations, the role of CO2 in boosting production remains significant, and demand for CO2 in EOR is expected to continue as companies look to maximize extraction from mature oil fields.

Furthermore, CO2 is utilized in refrigeration systems for both commercial and industrial purposes. Its efficiency in cooling makes it a critical component in industries such as food processing, pharmaceuticals, and manufacturing. As industries continue to expand and modernize, the demand for CO2 in refrigeration systems will likely continue to grow.

Technological Advancements and Carbon Capture Utilization: The growing emphasis on environmental sustainability and the United Kingdom's commitment to achieving net-zero emissions by 2050 is having a profound impact on the CO2 market. The development of carbon capture and utilization (CCU) technologies is a key part of the country’s decarbonization efforts.

Carbon capture and storage (CCS) technologies capture CO2 emissions from industrial processes and store them underground, preventing them from entering the atmosphere. Additionally, CCU technologies are focused on converting captured CO2 into useful products such as chemicals, biofuels, and building materials. The UK government is providing substantial support for the development of CCS and CCU technologies, and this is expected to play a crucial role in reducing the carbon footprint of industries that rely on CO2.

With these advancements, CO2 is expected to be viewed not just as a waste product, but as a valuable resource for creating a circular economy. The ongoing research and implementation of CCU technologies will likely provide new market opportunities, helping to drive growth in the CO2 sector in the United Kingdom.

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

Despite its promising growth outlook, the United Kingdom carbon dioxide market faces several challenges. One of the primary concerns is the dependence on traditional CO2 production methods, which are linked to fossil fuel consumption. The industrial production of CO2, particularly from natural gas or other hydrocarbons, contributes to the overall environmental impact, complicating efforts to achieve net-zero emissions.

Furthermore, disruptions in the supply chain, such as shortages in CO2 production or transportation issues, could have significant consequences across industries. Since CO2 is a critical component in sectors like food and beverage production and healthcare, any supply disruptions could result in production halts or delays in medical procedures.

Investments in infrastructure, including CO2 production, storage, and transportation systems, will be necessary to address these challenges and ensure a stable and sustainable supply of CO2 across industries.

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