The United Kingdom carbon dioxide (CO2) market has witnessed significant growth in recent years. In 2024, the market reached a volume of 725.8 KMT (kilotons), and this growth trajectory is expected to continue. The UK’s CO2 market is estimated to grow at a compound annual growth rate (CAGR) of 1.5% during the forecast period of 2025-2034. By 2034, the market is anticipated to reach a volume of 840.5 KMT. Several factors, including industrial demand, technological advancements, and government regulations aimed at reducing carbon emissions, are contributing to the market’s expansion.
United Kingdom Carbon Dioxide Market Size
In 2024, the UK carbon dioxide market reached a volume of 725.8 KMT. This sizeable volume reflects the essential role CO2 plays in industries such as food and beverage, healthcare, and manufacturing. CO2 is extensively used in the carbonation of beverages, food preservation, medical applications, and various industrial processes. These applications have made CO2 a critical industrial gas, fostering consistent demand across multiple sectors.
United Kingdom Carbon Dioxide Market Trends
Several key trends are shaping the UK carbon dioxide market and influencing its future outlook:
Sustainability and Green CO2 Production: As part of its commitment to achieving net-zero emissions by 2050, the UK government is focusing on sustainable CO2 production methods. This includes the use of carbon capture and storage (CCS) technologies and renewable CO2 sources, which are driving a shift towards cleaner production methods in the market.
Increased Demand in Food & Beverage: The food and beverage industry remains the largest consumer of CO2, particularly for carbonation, food preservation, and packaging. With the rise in demand for packaged and carbonated beverages, this sector will continue to drive growth in the CO2 market.
Industrial Applications: CO2 is used extensively in various industrial processes, including oil recovery, chemical production, and refrigeration. As industrial activities grow, demand for CO2 in these sectors will continue to rise, further contributing to market expansion.
Technological Advancements: The development of more efficient and sustainable CO2 production technologies, including CO2 recycling and advanced carbon capture methods, is a key trend. These innovations will improve the environmental sustainability of CO2 production while meeting the growing demand across industries.
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United Kingdom Carbon Dioxide Market Segmentation
Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU
Production:
Biological
Combustion
End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others
Carbon Dioxide Market Growth
The UK carbon dioxide market is set for continued growth, fueled by several key factors:
Rising Demand Across Key Sectors: Demand for CO2 will continue to rise, particularly in the food and beverage sector, where CO2 is used for beverage carbonation, food packaging, and preservation. Additionally, CO2 is crucial in industrial applications such as refrigeration, chemical manufacturing, and oil recovery.
Technological Innovation: New technologies in CO2 production, such as CCS and CO2 recycling, will support market growth. These technologies will reduce the carbon footprint of CO2 production, making it more sustainable and helping industries meet environmental regulations.
Government Regulations and Sustainability Efforts: With the UK’s goal of becoming net-zero by 2050, industries are under pressure to reduce their carbon emissions. This shift is likely to fuel demand for cleaner, more sustainable CO2 production methods, which will drive market growth.
Increasing Investment in Infrastructure: Continued investment in CO2 production infrastructure, including new CO2 capture plants and renewable energy sources, will enable the market to meet the growing demand for CO2 in both traditional and emerging applications.
United Kingdom Carbon Dioxide Market Analysis
The UK carbon dioxide market is diverse and spans multiple sectors, each with distinct needs and growth drivers. The food and beverage sector is by far the largest consumer of CO2, primarily due to its role in beverage carbonation, food preservation, and packaging. Other important industries include healthcare, where CO2 is used in medical applications such as respiratory treatments, and manufacturing, where CO2 is used in various industrial processes, including refrigeration and chemical production.
The market is undergoing a transformation as sustainability becomes more of a focus. Technologies such as carbon capture and storage (CCS), CO2 recycling, and renewable CO2 production are gaining traction. These technologies will reduce the environmental impact of CO2 production, making it a more sustainable option for industries that rely on this vital gas.
United Kingdom Carbon Dioxide Market Forecast
The forecast for the UK carbon dioxide market is positive, with an estimated CAGR of 1.5% from 2025 to 2034. By the end of the forecast period, the market is expected to reach 840.5 KMT. This growth will be driven by:
Sustained Demand from Key Industries: As industries such as food and beverage, healthcare, and manufacturing continue to grow, the demand for CO2 will rise. In particular, the food and beverage industry’s demand for carbonation, packaging, and preservation will remain a key market driver.
Technological Advancements in CO2 Production: Sustainable production technologies, including carbon capture and CO2 recycling, will become more mainstream, reducing the carbon footprint of CO2 production while ensuring the supply of CO2 meets growing demand.
Regulatory Support: With the UK’s focus on achieving net-zero emissions, there will be increasing regulatory support for cleaner CO2 production technologies, which will further drive market growth. Industries that comply with these regulations will help ensure the continued expansion of the CO2 market.
Competitor Analysis
The UK carbon dioxide market is competitive, with several key players involved in the production and supply of CO2. These companies play a crucial role in meeting the growing demand across various industries while pushing for sustainability in CO2 production.
Tata Chemicals Europe Limited: Tata Chemicals is a significant player in the UK CO2 market, providing CO2 for food and beverage carbonation, industrial processes, and more. The company focuses on reducing the environmental impact of CO2 production through sustainable practices.
Yara International ASA: Yara International supplies CO2 to various industries, including agriculture, chemicals, and food. Yara emphasizes sustainability and strives to reduce the carbon emissions associated with CO2 production.
Air Products PLC: Air Products is one of the global leaders in industrial gases, offering CO2 solutions to healthcare, food and beverage, and industrial markets. The company is focused on sustainable CO2 production and works to meet the growing demand across sectors.
BOC Limited (Linde): BOC, part of the Linde Group, is one of the largest suppliers of CO2 in the UK. The company serves a wide range of industries, including food and beverage, healthcare, and manufacturing, and focuses on innovation and sustainability.
Air Liquide UK Ltd.: Air Liquide is another prominent player in the UK CO2 market, providing CO2 solutions to healthcare, food and beverage, and industrial sectors. The company places a strong emphasis on sustainability and reducing its carbon footprint.
Nippon Gases: Nippon Gases is a major supplier of CO2 to industries in the UK, offering solutions for food and beverage, chemical manufacturing, and more. The company’s commitment to sustainability is a key differentiator in the market.
Progases (UK) Ltd.: Progases supplies CO2 solutions to a range of industries, including food and beverage and industrial processes. The company is focused on meeting the increasing demand for CO2 while ensuring environmentally responsible production.
Other Competitors: Several smaller players also operate in the UK CO2 market, offering niche CO2 solutions for specific industries and applications
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