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

The United Kingdom carbon dioxide market attained a volume of 725.8 KMT in 2024. The market is estimated to witness a CAGR of 1.5% during 2025-2034, reaching a volume of 840.5 KMT by 2034. This steady growth reflects the increasing importance of carbon dioxide in various industries such as food and beverages, medical applications, and metal fabrication. With advancements in carbon capture technologies and sustainable production methods, the United Kingdom carbon dioxide market is poised for long-term growth.

In this blog post, we explore the key segments of the United Kingdom carbon dioxide market, assess its production dynamics, and highlight the role of leading companies in shaping the future of this essential industry.

Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market

Ammonia

Ammonia production remains a major source of CO₂ in the United Kingdom carbon dioxide market. Carbon dioxide is produced as a by-product in ammonia plants, a critical source for industries relying on food-grade CO₂. Leading players like Yara International ASA and Tata Chemicals Europe Limited are continuously enhancing CO₂ recovery systems to improve efficiency and ensure a sustainable supply for various applications in the market.

Ethyl Alcohol

The fermentation process of ethyl alcohol, primarily used in the beverage industry, produces significant volumes of CO₂. This bio-based CO₂ is gaining popularity as an eco-friendly alternative to fossil-fuel-derived carbon dioxide. BioCarbonics Ltd. is at the forefront of leveraging bio-based production methods to supply CO₂ to meet the growing demand in the United Kingdom carbon dioxide market.

Substitute Natural Gas (SNG)

Substitute natural gas (SNG) processes also contribute to the United Kingdom carbon dioxide market. SNG is increasingly being used for industrial applications, with companies like BOC Limited (Linde) developing innovative solutions to capture CO₂ from SNG production while ensuring minimal environmental impact.

Market Segmentation by Production in the United Kingdom Carbon Dioxide Market

Biological Production

Biological methods, such as fermentation and anaerobic digestion, are gaining traction in the United Kingdom carbon dioxide market. These sustainable processes offer a lower environmental footprint compared to traditional production methods. Ensus UK Limited, a bioethanol producer, plays a key role in supplying bio-based CO₂ to meet industry demand in a more sustainable manner.

Combustion Production

Combustion remains a significant method for CO₂ production in industrial and energy sectors. However, with increasing pressure to reduce emissions, companies like Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to minimize environmental impact and enhance CO₂ recovery efficiency in the United Kingdom carbon dioxide market.

Key Market Segmentation by End Use in the United Kingdom Carbon Dioxide Market

Food and Beverages

The food and beverages industry is the largest consumer of CO₂ in the United Kingdom carbon dioxide market. Carbon dioxide is extensively used in the carbonation of soft drinks, food packaging, and preservation. As the UK's food and drink sector continues to expand, companies such as BOC Limited (Linde) and BioCarbonics Ltd. are focusing on sustainable CO₂ solutions to meet growing consumer demand.

Oil and Gas

In the oil and gas industry, CO₂ is crucial for enhanced oil recovery (EOR) processes. Despite the UK’s shift toward renewable energy, CO₂ remains essential for EOR. Companies such as Air Products PLC provide high-quality CO₂ to support these processes, helping the sector optimize production and extend the life of existing oil fields.

Medical Applications

The medical industry is another significant consumer of CO₂, used for surgeries, respiratory therapies, and anesthesia. As the healthcare sector expands in the UK, Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂, ensuring compliance with strict safety and quality standards.

Metal Fabrication

CO₂ plays an essential role in metal fabrication, particularly in welding and cutting processes. As industries like automotive and construction continue to grow, the United Kingdom carbon dioxide market is expected to experience rising demand from the metal fabrication sector. Companies such as Tata Chemicals Europe Limited are positioned to meet this demand through advanced CO₂ production technologies.

Other Applications

CO₂ also has various industrial applications, including in water treatment, fire suppression, and chemical production. These diverse uses ensure consistent demand for CO₂ across multiple sectors in the United Kingdom carbon dioxide market.

Market Dynamics

SWOT Analysis

Strengths

• Well-established infrastructure for CO₂ production and distribution in the United Kingdom carbon dioxide market.
• Strong industrial presence and diversified CO₂ applications.
• Continuous innovation and technological advancements from key market players.

Weaknesses

• Over-reliance on a few primary sources of CO₂, such as ammonia and ethyl alcohol.
• Environmental challenges associated with combustion-based production methods.

Opportunities

• Advancements in carbon capture and utilization technologies provide opportunities to improve sustainability.
• Growing interest in bio-based CO₂ production methods presents new market growth avenues.
• Increasing focus on sustainability and the circular economy supports the demand for environmentally friendly CO₂ production methods.

Threats

• Regulatory restrictions on emissions and CO₂ production methods could impact the industry.
• Potential supply chain disruptions due to geopolitical or economic factors.
• Competition from alternative gases and CO₂ substitutes may pose a long-term threat.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investment and regulatory requirements serve as barriers to entry in the United Kingdom carbon dioxide market.
• Bargaining Power of Suppliers: Suppliers have moderate power due to the limited number of CO₂ sources available in the market.
• Bargaining Power of Buyers: Buyers have access to multiple suppliers but expect high-quality and reliable CO₂ supply.
• Threat of Substitutes: New alternatives for CO₂, particularly in industrial applications, could affect the market in the long term.
• Industry Rivalry: Intense competition among existing players fosters innovation and price competitiveness within the United Kingdom carbon dioxide market.

Regional Insights

The demand for CO₂ is concentrated in urban areas like London, Birmingham, and Manchester, where industrial activities are robust. However, rural regions are witnessing increased growth as industrial development spreads beyond metropolitan centers. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are investing in optimized supply chains to ensure balanced demand and production across regions in the United Kingdom carbon dioxide market.

Competitive Landscape

Several key players dominate the United Kingdom carbon dioxide market, driving innovation and sustainability efforts. Major players include:

• Ensus UK Limited: A bioethanol producer, contributing to biological CO₂ production.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions for the food and beverage sector.
• Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for metal fabrication and other applications.
• Yara International ASA: Operates advanced CO₂ recovery systems in ammonia plants.
• Air Products PLC: A leader in carbon capture technologies and sustainable CO₂ production.
• BOC Limited (Linde): Offers diverse CO₂ solutions across industrial and medical sectors.
• Air Liquide UK Ltd: Focuses on sustainable CO₂ production and distribution.
• Nippon Gases: Supplies high-quality CO₂ for medical and industrial applications.
• Progases (UK) Ltd: Specializes in meeting specific CO₂ requirements across industries.