United Kingdom Carbon Dioxide Market: Trends, Growth, and Forecast 2025-2034

The United Kingdom carbon dioxide market plays a vital role in supporting various industries, including food and beverage, healthcare, manufacturing, and chemical processing. As of 2024, the United Kingdom carbon dioxide market has attained a volume of 725.80 KMT (Kilotons), and it is projected to grow at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034. By 2034, the market is expected to reach a volume of 842.32 KMT. The increasing industrial demand, technological advancements, and the growing need for CO2 in various applications make the United Kingdom carbon dioxide market a critical sector of focus. In this article, we will provide a comprehensive analysis of the market’s size and share, dynamics and trends, growth potential, opportunities, challenges, and competitive landscape.

Overview of the United Kingdom Carbon Dioxide Market

The carbon dioxide (CO2) market in the United Kingdom is an essential segment of the industrial gases industry. CO2 is used in a wide range of applications, including carbonating beverages, food preservation, chemical manufacturing, healthcare treatments, and enhanced oil recovery. It is also used in industrial processes such as welding, refrigeration, and as dry ice for shipping perishable goods.

The United Kingdom’s carbon dioxide market reached a volume of 725.80 KMT in 2024, driven by a steady demand across multiple industries. The market's growth is expected to continue, with a forecasted CAGR of 1.50% from 2025 to 2034. This growth can be attributed to the increasing consumption of CO2 in industries like food and beverage, healthcare, and chemical manufacturing.

The market’s dynamics are heavily influenced by the technological advancements in carbon capture and storage (CCS) as well as the growing focus on sustainability. These factors, along with changing consumer behavior and regulatory pressures, play a significant role in shaping the market outlook.

Size & Share of the United Kingdom Carbon Dioxide Market

The size and share of the United Kingdom carbon dioxide market are determined by the consumption patterns of CO2 across various industries. As of 2024, the market volume of carbon dioxide is 725.80 KMT. The market share of different industry segments can help provide a clearer understanding of CO2 demand within the country.

Market Share by Industry

1. Food and Beverage Industry: This sector is the largest consumer of CO2 in the UK, as carbon dioxide is widely used for carbonation, food preservation, and in packaging processes. CO2 is used in Modified Atmosphere Packaging (MAP) to extend the shelf life of food products.

2. Chemical Manufacturing: CO2 is a key raw material in the chemical industry for producing methanol, urea, and other chemicals. As the chemical sector grows, so does the demand for CO2, driving market expansion.

3. Healthcare: CO2 is used in various healthcare applications, such as medical imaging, respiratory therapy, and as an insufflation gas during surgeries. The healthcare industry’s growing demand for medical-grade CO2 contributes significantly to the market.

4. Industrial Applications: CO2 is used in applications such as welding, as a refrigerant, in enhanced oil recovery (EOR) projects, and in the production of dry ice for shipping perishable goods. These applications ensure stable demand for CO2 across different industrial sectors.

By 2034, the market is expected to reach a volume of 842.32 KMT, with the food and beverage sector continuing to dominate, followed by the chemical and healthcare industries.

Market Dynamics & Trends

The United Kingdom carbon dioxide market is influenced by several key dynamics and emerging trends. These factors are pivotal in driving the market's evolution, impacting both demand and supply.

1. Technological Advancements in Carbon Capture :One of the most significant trends in the CO2 market is the development and adoption of carbon capture and storage (CCS) technologies. These technologies capture carbon dioxide emissions from industrial processes and store them underground or repurpose them for industrial use. CCS is a critical component of the global effort to reduce carbon emissions and mitigate the effects of climate change. In the United Kingdom, CCS technologies are expected to reduce emissions while increasing the availability of CO2 for industrial use. This presents a long-term growth opportunity for the market.

2. Sustainability and Environmental Regulations :The UK government has set ambitious targets for reducing carbon emissions and promoting sustainability. Environmental regulations are becoming stricter, and businesses are under pressure to minimize their carbon footprint. As a result, CO2 producers are shifting toward cleaner and more sustainable production methods, such as renewable energy-powered CO2 generation. Furthermore, CO2 is also being used in carbon capture and utilization (CCU) projects, where it is converted into valuable products like synthetic fuels and chemicals. These trends align with the increasing focus on sustainable industrial practices.

3. Growing Demand from Emerging Industries :New industries are also contributing to the growing demand for CO2. For example, greenhouse agriculture is expanding, with CO2 being used to enhance plant growth. Similarly, the aquaculture sector is adopting CO2 to maintain water quality and improve fish farming conditions. These emerging applications represent a growing portion of the CO2 market and will continue to drive its expansion.

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Growth of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is expected to grow at a CAGR of 1.50% from 2025 to 2034. This growth can be attributed to the continued demand from existing industries and the rising importance of emerging applications.

Growth Drivers

1. Food and Beverage Demand: The food and beverage industry remains the dominant sector for CO2 consumption. The increasing preference for carbonated drinks, packaged foods, and the growth of convenience food segments is expected to keep demand for CO2 high.

2. Healthcare Expansion: The increasing number of medical procedures requiring CO2 for respiratory treatments, imaging, and surgeries supports market growth. With a growing healthcare sector, the demand for medical-grade CO2 will continue to rise.

3. Sustainability Initiatives: CO2 is being used in sustainable applications like carbon capture and utilization (CCU) and renewable energy-powered CO2 production. These developments align with the UK's commitment to reducing carbon emissions and provide new avenues for market growth.

4. Technological Advancements: Advancements in CCS and CCU technologies will increase the availability of CO2, contributing to market growth. Additionally, innovations in CO2 applications in industries like agriculture and aquaculture present new opportunities.

Growth Potential in Emerging Applications

While the food and beverage industry will remain the largest contributor to CO2 demand, the emerging applications of CO2 in agriculture, aquaculture, and renewable energy are expected to become significant drivers of market growth. CO2’s role in enhancing agricultural productivity and promoting sustainable practices presents a significant opportunity for market expansion.

Market Opportunities and Challenges

The United Kingdom carbon dioxide market offers numerous opportunities for growth, but it also faces several challenges that need to be addressed to maintain a sustainable growth trajectory.

Opportunities

1. Sustainable CO2 Production: The transition to renewable energy sources and sustainable production methods for CO2 offers significant market opportunities. As businesses seek to align with sustainability goals, the demand for eco-friendly CO2 is likely to rise.

2. Carbon Capture and Utilization (CCU): The ability to repurpose CO2 into useful products, such as synthetic fuels, chemicals, and even building materials, creates new market opportunities. As CCU technologies become more widespread, CO2 will become a more valuable commodity.

3. Expansion of Greenhouse Agriculture: The agricultural sector's adoption of CO2 for enhanced crop production is an emerging market opportunity. As controlled-environment agriculture grows, CO2 demand in this sector is expected to increase.

4. Increasing Healthcare Demand: The expanding healthcare sector offers significant potential for CO2 use in medical treatments. As the healthcare industry grows, the demand for medical-grade CO2 will rise, providing a stable revenue stream for CO2 producers.

Challenges

1. Regulatory Pressure: The CO2 industry faces increasing regulatory pressure to reduce emissions and adopt cleaner technologies. Compliance with these regulations can be costly, and failure to meet environmental standards could result in penalties.

2. Supply Chain and Logistics: Transporting and storing CO2 can be challenging, especially during peak demand periods. Disruptions in the supply chain, such as transportation delays or storage issues, can affect the availability and pricing of CO2.

3. Volatile Raw Material Costs: The price of raw materials needed to produce CO2, such as natural gas, can fluctuate, which impacts CO2 production costs. This price volatility may result in increased costs for businesses relying on CO2.

Competitive Analysis

The competitive landscape of the United Kingdom carbon dioxide market is highly fragmented, with several established players dominating the sector. These companies provide CO2 to various industries, ranging from food and beverage to healthcare and chemical manufacturing.

1. BOC Limited (Linde): BOC Limited, part of Linde Group, is one of the largest CO2 suppliers in the UK. The company provides CO2 for a wide range of applications, including food and beverage carbonation, healthcare, and industrial processes. BOC's extensive infrastructure and technological innovations make it a leading player in the market.

2. Air Liquide UK Ltd: Air Liquide is a global leader in industrial gases, with a strong presence in the United Kingdom. The company offers CO2 for various sectors, including the food and beverage, healthcare, and chemical industries. Air Liquide’s commitment to sustainability and technological innovation strengthens its position in the market.

3. Nippon Gases: Nippon Gases, a subsidiary of Nippon Sanso Holdings, is another key player in the UK carbon dioxide market. The company supplies CO2 for a variety of industries, including industrial, food, beverage, and healthcare applications. Nippon Gases is known for its innovative solutions and strong focus on customer service.

4. Progases (UK) Ltd: Progases (UK) Ltd is a regional supplier of industrial gases, including CO2, serving multiple industries in the UK. The company focuses on providing reliable CO2 solutions for sectors like food, beverage, and healthcare.

5. Others: Besides these key players, several other smaller regional players supply CO2 in the UK. These companies cater to niche markets or specific regional needs, further increasing the competitiveness of the carbon dioxide market.

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