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

The United Kingdom carbon dioxide market is a key player in the industrial gases sector, supporting a wide range of industries such as food and beverage, healthcare, manufacturing, and chemicals. The market, valued at 725.80 KMT in 2024, is forecasted to grow at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034. By the year 2034, it is expected to reach a volume of 842.32 KMT. This steady growth is driven by various factors, including technological advancements, increased industrialization, and demand from new sectors. This article provides an in-depth analysis of the United Kingdom carbon dioxide market, covering its size, trends, growth, challenges, and competitive landscape.

Overview of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market plays an essential role in various industries, with CO2 being utilized in diverse applications such as carbonating beverages, food preservation, industrial processes, and healthcare. Carbon dioxide is essential in the production of dry ice, the chemical industry, and as a refrigerant in several processes.

The market attained a volume of 725.80 KMT in 2024, driven by increased demand across several applications. The United Kingdom carbon dioxide market is projected to witness a CAGR of 1.50% from 2025 to 2034, ultimately reaching a market volume of 842.32 KMT by 2034. The market's growth is supported by the continued industrial demand for CO2 in food and beverage, healthcare, and manufacturing sectors.

Carbon dioxide production in the UK has been increasingly influenced by both environmental policies and technological advancements. Companies are focusing on carbon capture and storage (CCS) technologies to reduce carbon footprints while ensuring that CO2 is available for industrial use.

Size & Share of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is segmented based on application and industry. The food and beverage sector remains the largest consumer of CO2 in the country, followed by the chemical manufacturing and healthcare sectors.

In 2024, the market volume reached 725.80 KMT, and this volume is expected to expand steadily in the coming years. By 2034, the United Kingdom carbon dioxide market is projected to attain a volume of 842.32 KMT, driven by consistent growth in the demand for CO2. This steady growth is attributed to:

1. Rising demand from the food and beverage industry: The food sector, particularly in carbonated beverages, utilizes CO2 extensively for carbonation and preservation.

2. Increased demand from healthcare: CO2 is widely used in the medical sector for respiratory treatments, surgeries, and medical imaging.

3. Growth in chemical manufacturing: CO2 is a crucial feedstock in the production of chemicals like methanol, urea, and other industrial gases.

Market Share by Application

1. Food and Beverage: The food and beverage sector dominates the CO2 market in the UK. CO2 is widely used for carbonation, food preservation, and extending product shelf life.

2. Healthcare: The healthcare sector's demand for CO2, including its use in medical imaging and respiratory therapy, has witnessed growth in recent years.

3. Chemical Manufacturing: CO2 is an important raw material in the production of chemicals such as methanol and urea.

4. Industrial Applications: In welding, refrigeration, and enhanced oil recovery (EOR), CO2 plays a significant role in various industrial applications.

Get a Free Sample Report with a Table of Contents:
https://www.expertmarketresearch.com/reports/united-kingdom-carbon-dioxide-market/requestsample

Market Dynamics & Trends

The United Kingdom carbon dioxide market is characterized by several key dynamics and trends that shape its growth trajectory. These trends play a critical role in influencing CO2 demand and the overall market outlook.

1. Technological Advancements in Carbon Capture :One of the most prominent trends in the CO2 market is the development of carbon capture and storage (CCS) technologies. These innovations allow for the capture of CO2 emissions from industrial processes and the storage or repurposing of CO2 into useful products. The United Kingdom’s push for sustainability and decarbonization is driving the adoption of CCS technologies, which will likely boost the supply of CO2 for various industrial applications.

2. Sustainability and Environmental Regulations :With the UK government’s focus on achieving net-zero emissions by 2050, stringent regulations have been introduced to limit CO2 emissions from various sectors. The emphasis on sustainability has increased the demand for clean and green technologies. In the CO2 market, this shift is prompting producers to adopt low-carbon production methods, invest in renewable energy sources, and develop solutions for carbon capture and utilization (CCU).

3. Emerging Applications and Sectors :The United Kingdom carbon dioxide market is also benefiting from the expansion of emerging applications in sectors like greenhouse agriculture and aquaculture. CO2 is increasingly being used in greenhouse environments to enhance plant growth. In aquaculture, CO2 helps in maintaining water quality and improving the conditions for fish farming.

Growth of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is set to experience steady growth over the next decade. This growth is supported by several key factors, including increased demand from existing industries, technological advancements, and the emergence of new applications.

Growth Drivers

1. Increased Demand from the Food and Beverage Sector: The food and beverage industry remains the dominant driver of CO2 consumption in the UK. The rising popularity of carbonated beverages, packaged foods, and the growing demand for convenient food options are expected to fuel the demand for CO2 in the coming years.

2. Technological Innovation in Carbon Capture: The development of CCS and CCU technologies is expected to ensure a steady and sustainable supply of CO2 for industrial use, while reducing environmental impact.

3. Expanding Healthcare Industry: The healthcare sector's increasing reliance on CO2 for medical imaging, respiratory therapy, and surgeries will continue to contribute to market growth. The UK’s aging population and the expansion of healthcare services will further increase CO2 demand.

4. Sustainability Initiatives: Sustainability is a key focus across industries, and the growing trend of recycling CO2 for use in food and beverage applications aligns with the push for eco-friendly practices. Businesses adopting carbon capture methods or renewable energy-powered CO2 production will benefit from market growth.

Growth Potential in New Industries

In addition to the traditional sectors, new industries such as controlled-environment agriculture and the growing demand for CO2 in aquaculture provide significant growth potential. CO2’s role in enhancing agricultural productivity and promoting sustainable farming practices is expected to boost market demand.

Market Opportunities and Challenges

While the United Kingdom carbon dioxide market offers substantial growth opportunities, it also faces various challenges. Addressing these challenges is essential for maintaining sustainable market growth.

Opportunities

1. Carbon Capture and Utilization (CCU): The development of CCU technologies presents a significant opportunity to convert CO2 into valuable products like synthetic fuels, chemicals, and building materials. As industries adopt CCU solutions, CO2 will become a more versatile and valuable resource.

2. Emerging Applications in Agriculture and Aquaculture: The agricultural sector’s increasing use of CO2 to enhance crop yield and improve plant growth, as well as its use in aquaculture to optimize water quality, offers significant market opportunities.

3. Sustainability and Green Technologies: The growing interest in sustainability and the adoption of green production technologies presents an opportunity for CO2 suppliers to cater to industries looking to reduce their environmental footprint.

Challenges

1. Regulatory Pressure: As the UK works toward achieving its carbon reduction goals, the CO2 industry faces increasing regulatory scrutiny. Compliance with stricter environmental regulations may increase operational costs for CO2 producers and suppliers.

2. Supply Chain and Logistics Issues: Transporting and storing CO2 presents challenges, especially when demand surges or during transportation disruptions. Maintaining a stable supply chain is essential for ensuring CO2 availability.

3. Fluctuating Raw Material Prices: The price volatility of raw materials, particularly natural gas used in CO2 production, can affect the cost structure of CO2 producers. This fluctuation may lead to price hikes and affect the overall market dynamics.

Competitive Analysis

The United Kingdom carbon dioxide market is competitive, with several major players leading the industry. These players provide CO2 for various applications across industries such as food and beverage, healthcare, and industrial processes.

1. BOC Limited (Linde): BOC Limited, part of the Linde Group, is one of the largest players in the UK carbon dioxide market. With its extensive infrastructure and technological expertise, BOC provides CO2 for a wide range of applications, including food and beverage carbonation, healthcare, and industrial uses.

2. Air Liquide UK Ltd: Air Liquide is a global leader in the industrial gases sector, with a strong presence in the United Kingdom. The company supplies CO2 for the food, beverage, healthcare, and chemical industries. Air Liquide’s emphasis on sustainability and technological innovation positions it as a key competitor in the market.

3. Nippon Gases: Nippon Gases, a subsidiary of Nippon Sanso Holdings, is a major supplier of CO2 in the UK. The company serves several sectors, including industrial, food and beverage, and healthcare. Its focus on customer satisfaction and innovative solutions helps maintain a strong market presence.

4. Progases (UK) Ltd: Progases (UK) Ltd is a regional supplier of industrial gases, including CO2, for various industries in the UK. The company specializes in offering reliable CO2 solutions to sectors such as food, beverage, and healthcare.

5. Others: Besides these major players, the UK carbon dioxide market includes several smaller regional suppliers who serve niche applications and regional needs. These players contribute to the overall competitiveness of the market.

Explore our trending Blogs and Reports :
Toy manufacturers
HVAC Variable Frequency Drive Market