United Kingdom Carbon Dioxide Market Size, Share & Forecast 2025-2034

The United Kingdom’s carbon dioxide (CO2) market has witnessed steady growth over the past years, driven by industrial demand, environmental regulations, and technological advancements. In 2024, the UK CO2 market reached a volume of 725.8 KMT, marking a significant milestone. The market is estimated to grow at a compound annual growth rate (CAGR) of 1.5% from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. This blog will explore the UK’s CO2 market in detail, including its overview, market size, trends, growth factors, analysis, forecast, and key competitors.

United Kingdom Carbon Dioxide Market Overview

The United Kingdom CO2 market is an essential component of various industries, including food and beverage, healthcare, manufacturing, and agriculture. CO2 is used for a wide range of applications, from carbonation in soft drinks to medical procedures and industrial applications like welding and water treatment. The UK’s commitment to sustainability, coupled with technological advancements in CO2 production and carbon capture, has influenced the market’s dynamics.

With environmental goals focused on reducing carbon emissions, the demand for CO2 has shifted toward more sustainable methods of production. The market’s current volume of 725.8 KMT in 2024 reflects the ongoing reliance on CO2 across multiple sectors, while projections indicate continued growth as industries look for sustainable, cost-effective sources of CO2.

United Kingdom Carbon Dioxide Market Size

As of 2024, the United Kingdom carbon dioxide market is valued at 725.8 KMT. The market’s size is influenced by multiple factors such as industrial demand, environmental regulations, and the production capabilities of key companies. The food and beverage sector, including carbonation and food preservation, is one of the primary consumers of CO2, contributing significantly to the market volume. Additionally, CO2 is also essential in healthcare for medical procedures and pharmaceuticals.

With a steady increase in industrial CO2 applications, the market is expected to grow at a CAGR of 1.5% from 2025 to 2034. By 2034, the market volume is forecasted to reach 840.5 KMT, signaling positive growth driven by expanding demand across key industries.

United Kingdom Carbon Dioxide Market Trends

The United Kingdom carbon dioxide market is influenced by several key trends that are shaping its future:

Carbon Capture and Utilization (CCU) Technologies: As the world continues to focus on reducing greenhouse gas emissions, carbon capture technologies have become more advanced. These technologies allow CO2 to be captured from industrial processes and repurposed for commercial applications, making CO2 production more sustainable.

Sustainability and Green CO2 Production: With the UK government’s emphasis on sustainability, there is a growing trend of using renewable energy sources to produce CO2. Green CO2 production methods, such as capturing CO2 from bioenergy or waste-to-energy processes, are gaining traction in the market.

Demand in Emerging Sectors: CO2 is finding increasing applications in emerging sectors, including enhanced oil recovery, agriculture (for crop enhancement), and specialized chemical production. These trends are fueling the demand for CO2 and contributing to market growth.

Regulatory Push for Emission Reductions: The UK government’s regulatory frameworks focusing on reducing carbon emissions and increasing carbon neutrality are pushing industries to adopt cleaner and more efficient methods of CO2 production and usage.

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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

United Kingdom Carbon Dioxide Market Growth

The United Kingdom CO2 market is set for gradual growth in the coming decade. Several factors will contribute to this growth:

1. Rising Demand in the Food and Beverage Industry: The UK’s growing demand for carbonated beverages and processed foods, combined with CO2’s role in packaging and refrigeration, is driving substantial growth in the food and beverage sector.

2. Technological Advancements in CO2 Production: Advances in CO2 production, such as improved methods for capturing CO2 from industrial processes, will play a significant role in increasing market efficiency and reducing costs.

3. Increased Use in Healthcare: The medical and pharmaceutical industries continue to utilize CO2 for a variety of purposes, including anesthesia during surgeries, medical procedures, and drug manufacturing. This sector is anticipated to witness a steady rise in CO2 demand.

4. Industrial Expansion: The CO2 market is expected to benefit from the growth in sectors like metal production, water treatment, and chemicals. As manufacturing processes evolve, the demand for CO2 for industrial uses will expand.

United Kingdom Carbon Dioxide Market Analysis

The United Kingdom carbon dioxide market can be analyzed in terms of supply chain dynamics, pricing, and demand fluctuations:

1. Supply Chain Challenges: The CO2 market is highly dependent on supply chain dynamics, including raw material availability and production capabilities. Fluctuations in supply, driven by factors like production disruptions or global demand, can have a significant impact on CO2 availability and pricing.

2. Price Volatility: The price of CO2 is subject to market forces such as raw material costs, energy prices, and government regulations. Price fluctuations can have a direct impact on industrial demand, influencing both short- and long-term market dynamics.

3. Regional Demand Variations: Demand for CO2 varies regionally, with industrial clusters in urban areas driving higher concentrations of demand. The geographical distribution of industries will affect the market’s growth in different parts of the UK.

United Kingdom Carbon Dioxide Market Forecast

The carbon dioxide market in the United Kingdom is forecasted to reach a volume of 840.5 KMT by 2034, growing at a CAGR of 1.5% between 2025 and 2034. Several factors will influence the future growth of the market:

1. Sustainability Focus: The increasing focus on reducing carbon emissions, coupled with the UK’s environmental goals, will drive demand for cleaner CO2 production methods and sustainable carbon capture solutions.

2. Technological Breakthroughs: Advancements in CO2 production and capture technologies will enhance production efficiency, helping meet the growing demand for CO2 in various sectors.

3. Expanding Industrial Applications: Continued growth in the food, beverage, healthcare, and manufacturing sectors will support the long-term demand for CO2, contributing to overall market growth.

Competitor Analysis in the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is competitive, with several key players driving innovation and market expansion. Below are some of the top companies in the UK CO2 market:

Ensus UK Limited: Known for its bioethanol production, Ensus UK also produces CO2 as a byproduct of its renewable fuel processes. The company’s commitment to sustainability positions it as a key player in the market.

BioCarbonics Ltd.: Specializing in bio-based CO2 production, BioCarbonics focuses on capturing CO2 from bioenergy sources and offering it for a variety of industrial applications.

Tata Chemicals Europe Limited: Tata Chemicals Europe is a leading supplier of industrial gases, including CO2. The company serves a wide range of industries, such as food and beverage, chemicals, and agriculture.

Yara International ASA: A global leader in agricultural solutions, Yara International is also involved in CO2 production for various industrial applications, including food preservation and enhanced oil recovery.

Air Products PLC: A major player in the industrial gases sector, Air Products supplies CO2 for use in industries like healthcare, food and beverage, and manufacturing.

BOC Limited (Linde): BOC, part of the Linde Group, is one of the leading providers of industrial gases in the UK, including CO2 for a wide range of applications.

Air Liquide UK Ltd: Air Liquide is a key supplier of industrial gases, including CO2, with a focus on sustainable and environmentally friendly production methods.

Nippon Gases: Nippon Gases supplies industrial gases, including CO2, to industries like healthcare, food, and automotive, with a focus on innovation and customer satisfaction.

Progases (UK) Ltd: Progases is an important supplier of CO2 and other industrial gases, serving industries such as food and beverage, healthcare, and manufacturing.

Others: Smaller, niche players also contribute to the UK CO2 market, focusing on specialized applications and providing tailored CO2 solutions for specific industries.

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