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

The United Kingdom carbon dioxide market plays a significant role across multiple sectors, including food and beverage, healthcare, industrial manufacturing, and energy. As of 2024, the market has attained a volume of 725.80 KMT, and it is projected to grow at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a volume of 842.32 KMT by 2034. This growth is fueled by an increase in demand from diverse industries, technological advancements in carbon capture and storage, and regulatory pressures to reduce carbon emissions. This article explores the market’s overview, size and share, market dynamics and trends, growth projections, opportunities, challenges, and key players in the market.

Overview of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market involves the production, distribution, and consumption of CO₂ for various applications. Carbon dioxide is used across several industries, including food and beverage for carbonation and preservation, in healthcare for medical applications, and in industrial processes such as welding and metalworking. Additionally, carbon dioxide plays a crucial role in the energy sector, where it is used in enhanced oil recovery (EOR) and as a byproduct in some industrial processes.

In 2024, the market reached a volume of 725.80 KMT. This figure represents both the demand from key industries and the supply capabilities of CO₂ producers. Over the next decade, the United Kingdom carbon dioxide market is expected to witness steady growth driven by increased industrial usage, advancements in carbon capture and storage (CCS) technologies, and the rising need for environmentally sustainable practices.

The market's growth rate is anticipated to be at a CAGR of 1.50% from 2025 to 2034. By 2034, the market volume is projected to reach 842.32 KMT, reflecting the sustained demand for CO₂ across multiple sectors. The ongoing evolution of technologies for CO₂ capture and utilization will likely open new opportunities for CO₂ applications and expand the overall market potential.

Size and Share of the United Kingdom Carbon Dioxide Market

The size and share of the United Kingdom carbon dioxide market are largely driven by its applications in major sectors, including food and beverage, healthcare, industrial manufacturing, and energy. CO₂ is produced primarily through natural processes such as fermentation or is captured as a byproduct from other industrial processes, such as hydrogen production or natural gas refining.

Market Size

In 2024, the market size of the United Kingdom carbon dioxide market was recorded at 725.80 KMT. This represents the total volume of CO₂ produced and consumed in the country across various industries. The market is expected to grow steadily with a CAGR of 1.50% through 2034. As the food and beverage sector, in particular, continues to experience growth, along with rising industrial demand, the market’s size is expected to reach approximately 842.32 KMT by 2034.

Market Share by Application

1. Food and Beverage: The food and beverage sector holds the largest share of the UK carbon dioxide market. CO₂ is used for carbonation, food preservation, and modified atmosphere packaging. As consumer demand for packaged and carbonated beverages increases, the demand for CO₂ in this sector is expected to rise.

2. Healthcare: CO₂ is utilized in the healthcare industry for medical applications such as respiratory treatments, anesthesia, and certain diagnostic procedures. The growing demand for medical gases and respiratory care solutions is a key driver of the healthcare sector’s share in the carbon dioxide market.

3. Industrial Manufacturing: Industries such as chemical production, welding, and metalworking are significant consumers of CO₂. The CO₂ market share in this sector is expected to grow as more advanced manufacturing processes emerge, requiring CO₂ for inerting, cooling, and chemical production.

4. Energy: The energy sector’s demand for CO₂, particularly for enhanced oil recovery (EOR) and carbon capture applications, continues to increase. Though smaller than food and beverage or healthcare, the energy sector is a steady consumer of CO₂ in the UK market.

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

Market Dynamics and Trends in the United Kingdom Carbon Dioxide Market

Several market dynamics and trends are influencing the growth and development of the United Kingdom carbon dioxide market. Technological innovations, government policies, and shifting consumer preferences toward sustainability are among the most significant factors.

1. Technological Advancements:The advancement of carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies is a major trend in the market. These technologies capture CO₂ emissions from industrial processes and prevent them from entering the atmosphere. The growing focus on environmental sustainability and reducing carbon footprints has prompted increased investment in these technologies.

2. Government Regulations and Sustainability Initiatives:Government policies play a significant role in shaping the market dynamics of CO₂ production and consumption. The United Kingdom's commitment to achieving net-zero emissions by 2050 is pushing industries to adopt cleaner technologies and reduce their carbon footprints. Regulations regarding CO₂ emissions and environmental impact have increased the demand for carbon capture technologies, leading to more sustainable CO₂ production methods.

3. Consumer Preferences for Sustainability:As sustainability becomes more important to consumers, industries are increasingly turning to environmentally friendly solutions. Consumers’ preference for sustainable packaging and low-carbon products is fueling the demand for CO₂ in areas such as food packaging and beverage carbonation. As consumers demand eco-friendly products, the role of CO₂ in achieving these goals will continue to grow.

Growth of the United Kingdom Carbon Dioxide Market

The growth of the United Kingdom carbon dioxide market is supported by the increasing demand for CO₂ across various industries. Several factors contribute to the growth trajectory, including the expansion of key end-use sectors, advancements in carbon capture technologies, and a growing emphasis on sustainability.

1. Increasing Industrial Demand:Industrial applications such as welding, chemical production, and metalworking are vital for the continued growth of the carbon dioxide market. As industrial processes become more advanced and automated, CO₂ will continue to play a critical role in supporting these operations. The industrial sector’s steady demand for CO₂ will contribute to the overall market growth.

2. Expansion of the Food and Beverage Sector:The food and beverage industry is one of the largest consumers of CO₂ in the UK. With the rising demand for packaged foods, carbonated drinks, and refrigerated products, the food and beverage sector will continue to drive demand for CO₂. Advances in food packaging technologies that use CO₂ to extend shelf life will also contribute to market growth.

3. Healthcare Sector Expansion:The healthcare sector's demand for CO₂ in medical applications, such as respiratory therapies, anesthesia, and diagnostic equipment, will continue to rise. As the healthcare industry expands and healthcare services become more advanced, the demand for CO₂ in these applications will drive market growth.

4. Technological Innovations in Carbon Capture:Carbon capture technologies, particularly CCS and CCUS, offer significant growth potential for the CO₂ market. As industries strive to meet sustainability goals, the adoption of carbon capture technologies will increase the demand for CO₂. These technologies are expected to create new revenue streams and further promote the recycling and utilization of CO₂.

Market Opportunities and Challenges

Opportunities

1. Sustainable Packaging Solutions:As the demand for eco-friendly packaging grows, CO₂’s role in modified atmosphere packaging becomes more prominent. The use of CO₂ in food packaging to reduce spoilage and extend shelf life presents significant growth opportunities for CO₂ producers.

2. Carbon Capture and Utilization Technologies:The development of carbon capture and utilization technologies offers an opportunity to expand CO₂ applications in industries like energy, chemicals, and manufacturing. By converting CO₂ into valuable products, companies can both reduce emissions and create new revenue streams.

3. Healthcare Sector Growth:With the ongoing growth of the healthcare sector and increasing demand for respiratory treatments and medical gases, the CO₂ market will experience steady growth. Healthcare applications for CO₂, such as in anesthesia and diagnostic procedures, present new market opportunities.

Challenges

1. Supply Chain Volatility:Fluctuations in the supply of raw materials for CO₂ production can disrupt the market. Natural gas price fluctuations, for instance, can lead to changes in the cost of CO₂ production, which may impact market pricing.

2. Environmental Regulations:While environmental regulations are beneficial for reducing emissions, they also introduce compliance costs. CO₂ producers must invest in technologies to reduce emissions and ensure regulatory compliance, which can be a financial burden, especially for smaller companies.

3. Competition from Alternative Solutions:Alternative technologies, such as refrigerants and other gases, may pose a threat to CO₂’s dominance in certain applications. As new technologies emerge, the CO₂ market may face competition from these alternatives, particularly in industries like refrigeration and cooling.

Competitor Analysis of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is competitive, with several key players dominating the landscape. These companies are engaged in CO₂ production, distribution, and innovation across various sectors.

1. BOC Limited (Linde):BOC Limited, part of the Linde Group, is one of the largest producers of industrial gases in the UK, including CO₂. The company provides CO₂ to various sectors, including food and beverage, healthcare, and manufacturing. BOC's broad product range and established infrastructure make it a major player in the UK market.

2. Air Liquide UK Ltd:Air Liquide is a global leader in gases and services for industrial, medical, and electronic applications. In the UK, Air Liquide supplies CO₂ to several industries, including food and beverage, healthcare, and chemicals. Their commitment to sustainability and innovation positions them as a key competitor in the market.

3. Nippon Gases:Nippon Gases, a global supplier of industrial gases, is a significant player in the UK CO₂ market. The company focuses on providing CO₂ solutions to industries such as food and beverage, healthcare, and manufacturing, offering sustainable and high-quality industrial gases.

4. Progases (UK) Ltd:Progases (UK) Ltd is a prominent supplier of CO₂ in the UK. The company serves industries such as food production, healthcare, and manufacturing. Progases focuses on delivering reliable and efficient CO₂ solutions tailored to the needs of its customers.

5. Others:Smaller players and local producers of CO₂ also contribute to the competitive landscape. These companies often focus on niche markets or regional demand, providing specialized CO₂ solutions in select sectors.

Explore our trending Blogs and Reports :
Top Construction Companies
HVAC Variable Frequency Drive Market