United Kingdom Carbon Dioxide Market Size, Share, Growth and Report | 2034

United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size attained a value of volume of 725.80 KMT in 2024. Aided by the increasing demand for carbon dioxide across various industries, including food and beverages, healthcare, and manufacturing, the market is projected to grow at a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034, reaching a volume of 842.32 KMT by 2034.

Carbon dioxide (CO₂), a naturally occurring gas, is a crucial component in numerous industrial applications. It is widely used as a refrigerant, preservative, and chemical feedstock. Additionally, its role in carbonation processes and enhanced oil recovery underscores its industrial significance. With a range of applications in sectors such as food processing, medical therapy, welding, and water treatment, the demand for carbon dioxide is closely tied to the growth of these industries.

Key Drivers of Market Growth

The robust expansion of the food and beverage sector in the United Kingdom is a primary factor driving the growth of the United Kingdom carbon dioxide market. CO₂ is extensively used in the carbonation of beverages, ensuring the desired fizzy texture in sodas, beers, and sparkling water. Additionally, its application as a preservative in packaged foods helps extend shelf life, meeting the rising consumer demand for convenient and long-lasting food products.

Another significant driver is the increasing reliance on carbon dioxide in the healthcare sector. CO₂ is essential in medical procedures such as minimally invasive surgeries, where it serves as an insufflation gas. Its role in respiratory therapy and blood gas analysis further underscores its importance in healthcare, as advancements in medical technologies continue to create new applications for this versatile gas.

In the manufacturing industry, carbon dioxide is a key input in welding and cutting processes, which are essential for fabricating metal components. The resurgence of industrial activity and infrastructure development across the United Kingdom has led to an increased demand for welding-grade CO₂, bolstering market growth.

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Applications in Emerging Technologies

The application of United Kingdom carbon dioxide market in emerging technologies also contributes to market expansion. In enhanced oil recovery (EOR), CO₂ injection helps boost oil extraction from mature wells, offering a sustainable solution to maximize resource utilization. Furthermore, the development of carbon capture and utilization (CCU) technologies has increased interest in carbon dioxide as a feedstock for producing fuels, chemicals, and materials, aligning with the United Kingdom's sustainability goals.

The adoption of CO₂ in vertical farming and greenhouse agriculture is another promising trend. CO₂ enrichment in controlled environments enhances plant growth and productivity, addressing the growing need for sustainable food production. This trend is particularly relevant in urban areas, where vertical farming initiatives are gaining traction to reduce dependency on imported produce.

United Kingdom Carbon Dioxide Market Market Segmentation

The market can be divided based on source, production and End use.

• 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 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

Market Challenges

Despite its widespread applications, the United Kingdom carbon dioxide market faces several challenges. The reliance on fossil fuels for CO₂ production raises environmental concerns and contributes to greenhouse gas emissions. As a result, there is growing pressure on industries to adopt sustainable production methods, such as sourcing CO₂ from bio-based processes or waste streams.

Fluctuations in the availability and pricing of carbon dioxide also pose challenges. For instance, supply disruptions caused by reduced ammonia production—a primary source of CO₂—can affect downstream industries reliant on consistent CO₂ availability. Addressing these supply chain vulnerabilities requires diversifying production sources and enhancing storage capabilities.

Future Prospects

The United Kingdom carbon dioxide market is poised for significant growth, driven by the increasing demand from key end-use industries and the rising focus on sustainability. Innovations in CCUS technologies and bio-based CO₂ production methods are expected to reshape the market landscape, offering environmentally friendly solutions to meet the growing demand for carbon dioxide.

Moreover, the integration of CO₂ into the circular economy presents new opportunities for market expansion. By converting captured CO₂ into valuable products such as synthetic fuels, chemicals, and construction materials, industries can reduce waste and create additional revenue streams.

The role of carbon dioxide in addressing global challenges such as food security and energy transition further underscores its importance. As the adoption of CO₂ in applications such as vertical farming, renewable energy storage, and advanced manufacturing continues to grow, the market is likely to witness sustained demand.

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