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

The UK carbon dioxide market has seen steady growth in recent years, driven by the increasing demand for CO2 in various industries.

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

The United Kingdom (UK) carbon dioxide (CO2) market plays a crucial role in various industries, including food and beverage, pharmaceuticals, chemicals, and energy. As a by-product of industrial processes, CO2 has seen growing demand in applications such as carbonation, refrigeration, and as an inert atmosphere for manufacturing processes. The market reached a volume of 725.80 KMT in 2024 and is expected to witness a Compound Annual Growth Rate (CAGR) of 1.50% from 2025 to 2034, reaching 842.32 KMT by 2034.

This article explores the UK CO2 market's size, dynamics, trends, growth potential, and key players, offering insights into the opportunities and challenges shaping its future.

Overview of the United Kingdom Carbon Dioxide Market

The UK carbon dioxide market has seen steady growth in recent years, driven by the increasing demand for CO2 in various industries. CO2 is mainly produced from industrial processes like ammonia production, ethanol fermentation, and natural gas processing. This gas finds applications across sectors like food preservation, beverage carbonation, and industrial uses, including chemical manufacturing and water treatment.

The production of CO2 is also linked with environmental sustainability efforts, as its use in certain applications helps reduce waste emissions and promotes eco-friendly practices. The rise of the carbon capture, utilization, and storage (CCUS) technology has also paved the way for cleaner production methods, fostering the overall growth of the market.

The UK’s carbon dioxide market is supported by stringent government policies that aim to reduce carbon emissions and promote industrial efficiency. This has fueled the market's shift toward more sustainable and cleaner CO2 production methods.

Market Size & Share

In 2024, the UK carbon dioxide market attained a volume of 725.80 KMT. This was a result of a combination of factors including the stable demand from the food and beverage industry, growing use in industrial applications, and the development of new technologies aimed at reducing emissions.

The market is projected to grow at a CAGR of 1.50% from 2025 to 2034, with an expected volume of 842.32 KMT by 2034. This growth can be attributed to the increasing application of CO2 in several sectors, including:

  • Food and Beverage: CO2 is widely used in food preservation, carbonated beverages, and packaging.
  • Chemical Industry: CO2 is a key input in the production of chemicals such as urea and methanol.
  • Pharmaceuticals: The pharmaceutical industry uses CO2 in various applications like drug formulations and cryogenic processes.
  • Energy and Agriculture: CO2 is used in enhanced oil recovery, greenhouse agriculture, and carbon sequestration.

The key players in the UK CO2 market continue to invest in expanding their production capacities to cater to the growing demand from these diverse industries.

Market Dynamics & Trends

Increasing Demand for CO2 in Food and Beverage Industry

One of the primary drivers of the UK CO2 market is the food and beverage industry, where CO2 is used for carbonation, preservation, and packaging. With the growing consumption of carbonated drinks and an increase in demand for packaged foods, the need for CO2 continues to rise. Additionally, CO2 is used in modified atmosphere packaging (MAP), which helps prolong the shelf life of fresh produce and meats.

Environmental Regulations and Sustainability Efforts

Governments and regulatory bodies in the UK have been putting more pressure on industries to reduce their carbon footprints. As a result, industries are increasingly focusing on sustainable and eco-friendly practices, including utilizing CO2 for various industrial purposes. The growth of carbon capture, utilization, and storage (CCUS) technologies also plays a critical role in reducing emissions and improving the sustainability of CO2 production.

CO2 as a Greenhouse Gas

Despite its applications, CO2 remains a potent greenhouse gas. As the world moves toward decarbonization, efforts to capture and store CO2 are becoming more critical. This is leading to the rise of new technologies focused on reducing CO2 emissions in line with the UK's ambitious climate targets.

Growth in the Pharmaceutical and Chemical Industries

The demand for CO2 in the pharmaceutical sector, primarily for cryogenic processes and drug formulations, is expanding. Similarly, the chemical industry’s reliance on CO2 for production processes like urea manufacturing and methanol production continues to drive market demand.

Growth Drivers for the United Kingdom Carbon Dioxide Market

Strong Demand from Industrial Applications

CO2 has many industrial applications in sectors like metal production, water treatment, and oil recovery. As industries continue to expand and innovate, the demand for CO2 will remain high. The adoption of carbon capture and storage technologies is expected to enhance CO2 production, making it a valuable by-product in industrial applications.

Technological Advancements in CO2 Production

Technological advancements in CO2 production, including the development of more efficient methods to capture and store CO2, will significantly contribute to market growth. These innovations are enabling companies to minimize their environmental impact while meeting increasing demand. Additionally, new technologies will allow industries to make use of CO2 as a feedstock for manufacturing chemicals, thus reducing reliance on traditional raw materials.

Energy Transition and Carbon Capture Technologies

As the UK works towards net-zero emissions by 2050, carbon capture, utilization, and storage (CCUS) technologies are expected to become a key enabler of CO2 production. These technologies will not only help reduce emissions but also provide a sustainable method of CO2 production for industrial use.

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Market Opportunities and Challenges

Opportunities

  • Expansion in Emerging Industries: New applications for CO2, such as in the energy and agricultural sectors, offer significant growth opportunities. CO2 is increasingly used in enhanced oil recovery (EOR), algae cultivation, and greenhouse farming.
  • Carbon Capture and Utilization (CCU): The development of CCU technologies presents a major opportunity for the CO2 market. By capturing excess CO2 from industrial processes and converting it into useful products like chemicals and biofuels, the market can become more sustainable and economically viable.
  • Increasing Demand for Sustainable Practices: As industries increasingly shift toward sustainable production methods, CO2 will play a key role in meeting these goals. Market players who invest in green technologies will be well-positioned for long-term growth.

Challenges

  • Regulatory and Environmental Pressure: CO2 emissions remain a significant environmental concern, with governments globally working to reduce greenhouse gas emissions. While the capture and storage of CO2 are seen as solutions, the ongoing pressure for industries to reduce their CO2 emissions may limit production capacity in the long term.
  • High Production Costs: The cost of producing and capturing CO2 is still relatively high, particularly when considering the energy-intensive processes involved. This may pose a challenge to companies trying to remain competitive while maintaining environmentally sustainable practices.
  • Competition from Alternative Gases: CO2 competes with other gases such as nitrogen, argon, and oxygen in various industrial applications. The availability of these alternatives may pose a challenge to the growth of the CO2 market, especially if they are perceived as more cost-effective or environmentally friendly.

Competitive Analysis in the United Kingdom Carbon Dioxide Market

The UK carbon dioxide market is characterized by the presence of several large multinational corporations as well as specialized companies. Some of the key players in the market include:

  • Ensus UK Limited: A leading player in the carbon dioxide market, Ensus focuses on the sustainable production of CO2 derived from renewable sources.
  • BioCarbonics Ltd.: This company specializes in the production and supply of industrial gases, including CO2, for a range of applications in food and beverage, healthcare, and manufacturing.
  • Tata Chemicals Europe Limited: A prominent player in the CO2 market, Tata Chemicals manufactures a wide variety of gases for industrial applications.
  • Yara International ASA: Known for its expertise in fertilizer production, Yara also plays a significant role in CO2 production, particularly for use in agriculture and chemical processes.
  • Air Products PLC: One of the world's largest suppliers of industrial gases, Air Products is a key player in the UK CO2 market, offering products for food processing, healthcare, and chemical manufacturing.
  • BOC Limited (Linde): BOC, part of the Linde Group, is a global leader in the supply of industrial gases and plays a major role in the UK CO2 market, serving a wide range of sectors.
  • Air Liquide UK Ltd.: As a leader in the supply of industrial gases, Air Liquide is a significant supplier of CO2 in the UK, catering to a broad spectrum of industries.
  • Nippon Gases: With a strong presence in the UK market, Nippon Gases supplies CO2 to industries such as food and beverage, healthcare, and chemicals.
  • Progases (UK) Ltd.: Specializing in industrial gas production, Progases offers CO2 solutions to industries across the UK.

These companies continue to invest in expanding their CO2 production capacities and diversifying their portfolios to meet the growing demand from various sectors.

The United Kingdom carbon dioxide market is set to grow steadily in the coming decade, with a projected volume of 842.32 KMT by 2034. While the market faces challenges such as environmental regulations and production costs, the growing demand from sectors like food and beverage, pharmaceuticals, and chemicals presents significant growth opportunities. Technological advancements, particularly in carbon capture and storage, are expected to play a key role in shaping the future of the market. Key players in the market are poised to benefit from these trends by investing in green technologies and expanding their production capacities to meet the evolving demands of industries across the UK.

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