United Kingdom Carbon Dioxide Market Growth, Share & Trends 2025-2034

The United Kingdom (UK) carbon dioxide market has been experiencing significant growth in recent years. In 2024, the market reached a volume of 725.8 KMT (Kilotonnes), and it is expected to continue expanding at a steady pace. The market is projected 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 growth reflects the increasing demand for carbon dioxide in various industries, such as food and beverage, manufacturing, and healthcare.

In this article, we will explore the UK carbon dioxide market’s outlook, share, trends, dynamics, opportunities, challenges, and competitor analysis in detail.

United Kingdom Carbon Dioxide Market Outlook

The United Kingdom’s carbon dioxide (CO2) market outlook is characterized by steady growth driven by key industry trends and consumer demands. The market in 2024 stands at 725.8 KMT and is set to experience gradual but consistent growth over the next decade.

Several factors contribute to the optimistic outlook of the UK carbon dioxide market:

Increasing Industrial Applications: CO2 is used across various industries such as food and beverage, pharmaceuticals, and chemical production. Its widespread application in the carbonated beverage industry, food preservation, and as a refrigerant in industrial settings is expected to drive demand.

Government Regulations on Emissions: With stringent environmental regulations, the UK is focused on reducing carbon emissions. In line with this, carbon capture and storage technologies have become more important, creating a growing need for CO2 management, which could influence the demand for CO2 in different sectors.

Technological Advancements in CO2 Recovery: New technologies in CO2 recovery and purification are expected to increase the overall availability of CO2, further boosting the market in the coming years.

Sustainability Focus: With the increasing focus on sustainability and climate change mitigation, companies in the UK are incorporating CO2 management into their strategies, which may lead to higher adoption rates and more widespread use of carbon dioxide in both industrial and commercial processes.

Given these factors, the United Kingdom carbon dioxide market’s growth trajectory remains positive, with the expected volume reaching 840.5 KMT by 2034.

United Kingdom Carbon Dioxide Market Share and Trends

The UK carbon dioxide market is diverse, with various sectors contributing to its growth. The market is divided into multiple segments, each with its own share and trends.

Market Share by End-Use Applications

Food and Beverage Industry: The food and beverage sector is the largest consumer of carbon dioxide in the UK. CO2 is primarily used in carbonated beverages, preservation of food, and as a propellant for packaging. The increasing demand for ready-to-eat meals and convenience food items is expected to fuel the growth of CO2 consumption in this sector.

Manufacturing and Chemical Industry: The manufacturing and chemical industries also make significant use of carbon dioxide, where it is employed for industrial gas applications, such as in welding and fire suppression systems. The growth of industrial activity in the UK is expected to drive this segment’s growth.

Healthcare Sector: In the healthcare industry, CO2 is used in medical procedures such as minimally invasive surgeries. It is also employed in medical imaging technologies, contributing to the market’s growth in the health and medical sectors.

Others (Mining, Water Treatment): Other industrial applications, such as CO2 use in mining, water treatment, and even as a refrigerant in air conditioning, are also gaining traction in the UK.

Key Trends in the United Kingdom Carbon Dioxide Market

Rise of Sustainable CO2 Solutions: The increasing emphasis on sustainability has led to a rising demand for solutions like carbon capture and storage (CCS). These technologies aim to capture and store CO2 to reduce its environmental impact, which could provide new avenues for CO2 consumption.

Demand for Carbonated Beverages: The ongoing demand for carbonated soft drinks and alcoholic beverages in the UK continues to drive CO2 consumption. Consumer preferences for low-calorie, flavored, and fizzy drinks have contributed to the continued demand for CO2 in the beverage sector.

Growing Adoption of CO2 in Agriculture: CO2’s use in enhancing plant growth via greenhouse technology and in controlling pests in agriculture is gaining popularity. This trend is expected to expand further as farmers look for ways to boost yields and maintain environmental sustainability.

Innovations in CO2 Recovery: The UK is focusing on new technologies to recover CO2 from industrial emissions, improving the efficiency of CO2 production and reducing overall costs. As these innovations unfold, the market is expected to benefit from more cost-effective and environmentally friendly methods of obtaining carbon dioxide.

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United Kingdom Carbon Dioxide Market Dynamics and Trends

Understanding the dynamics and trends of the UK carbon dioxide market is essential to gaining insights into its long-term prospects.

Drivers of the Market

Industrial Growth: As industries continue to expand in the UK, the demand for CO2 will rise. Manufacturing, food processing, and medical industries are at the forefront of driving the growth of the market.

Consumer Behavior: The increasing demand for carbonated beverages, convenience food, and packaged goods is a key driver for CO2 consumption. The UK’s appetite for both soft drinks and alcoholic beverages ensures that the beverage segment remains dominant.

Technological Innovation: Innovations in CO2 recovery, capture, and purification technologies will play a significant role in the growth of the market. The ability to recycle and capture CO2 more effectively will contribute to maintaining the market’s growth trajectory.

Restraints of the Market

Environmental Concerns: Despite its various industrial uses, carbon dioxide remains a greenhouse gas, contributing to global warming. As environmental concerns grow, governments may impose stricter regulations on CO2 emissions, which could impact the carbon dioxide market.

Cost of Production: The cost of CO2 production, especially with regard to its capture and purification, may act as a restraint. The high costs associated with obtaining CO2 through some recovery processes may deter smaller businesses from adopting these solutions, affecting overall market growth.

Alternatives to CO2: The rise of alternatives, such as nitrogen and oxygen, which can be used in some applications traditionally served by CO2, might limit market growth. Companies may prefer these alternatives to avoid regulatory scrutiny related to CO2 emissions.

United Kingdom Carbon Dioxide Market Opportunities and Challenges

The UK carbon dioxide market presents numerous opportunities as well as challenges.

Opportunities

Expansion in the Agricultural Sector: The growing use of CO2 in agriculture, particularly in controlled environments like greenhouses, presents a significant opportunity. As farmers seek ways to increase crop yields while minimizing environmental impact, CO2’s role in enhancing plant growth will likely expand.

Carbon Capture and Storage (CCS): The UK government is increasingly focused on carbon capture and storage (CCS) as part of its climate change strategy. With the ability to store CO2 instead of releasing it into the atmosphere, CCS technology represents a promising opportunity for both reducing emissions and providing a steady demand for CO2.

Innovation in CO2 Recovery: The ongoing advancements in CO2 recovery techniques, which capture and purify CO2 emissions from industries, provide a significant opportunity to meet the growing demand for carbon dioxide in a more sustainable manner.

Rising Demand for Medical Applications: With the increase in medical procedures requiring CO2 for insufflation and other applications, the medical industry presents a growing opportunity for CO2 suppliers.

Challenges

Regulatory Pressure: The UK’s strict regulations on emissions pose a challenge for the carbon dioxide market. The introduction of more stringent laws regarding CO2 emissions could affect the availability of CO2 or force companies to adopt costly carbon reduction strategies.

Environmental Concerns: The market faces the challenge of balancing CO2 usage with the need for environmental sustainability. The public perception of CO2 as a pollutant could hinder growth, especially in sectors where alternatives are available.

Supply Chain Disruptions: Global supply chain issues, particularly in the transportation and storage of CO2, may result in supply disruptions and price volatility. This could have adverse effects on industries that rely heavily on CO2, such as food and beverage.

Competitor Analysis

The United Kingdom carbon dioxide market is competitive, with several key players vying for market share. Some of the prominent companies in the UK carbon dioxide market include:

BOC Limited (Linde): A major supplier of industrial gases in the UK, part of the Linde Group, serving diverse industries.

Air Liquide UK Ltd: A prominent industrial gas company in the UK, focusing on innovation and providing gases for industrial and medical sectors.

Nippon Gases: A Japanese-owned company delivering industrial gases and services across various industries in the UK and globally.

Progases (UK) Ltd: A supplier of industrial gases in the UK, providing services for sectors like food, medical, and manufacturing.

Others: Various regional and niche players contributing specialized services and gases across different industries in the UK.

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