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

The United Kingdom carbon dioxide market has seen a steady rise in demand, driven by the diverse industrial applications of CO2 and the need for emissions reduction technologies. In 2024, the market attained a volume of 725.80 KMT (kilotons) and is projected to grow at a CAGR of 1.50% from 2025 to 2034. By 2034, the market is estimated to reach a volume of approximately 842.32 KMT. This growth trajectory highlights the crucial role that carbon dioxide plays across industries ranging from food and beverage to industrial applications and enhanced oil recovery (EOR).

In this article, we will delve into the overview, market size & share, market dynamics & trends, growth factors, opportunities & challenges, and provide an in-depth competitor analysis of the key players within the United Kingdom carbon dioxide market.

Overview of the United Kingdom Carbon Dioxide Market

Carbon dioxide (CO2) is an essential industrial gas that finds widespread usage across multiple sectors. It is used in various applications such as food preservation, beverages (carbonated drinks), welding, fire suppression, and medical treatments. Additionally, CO2 is increasingly used in industrial applications like enhanced oil recovery (EOR) and carbon capture and storage (CCS), both of which contribute to the growing demand for CO2.

The United Kingdom carbon dioxide market is highly influenced by the growing demand in food and beverage sectors, industrial applications, and advancements in carbon management technologies. Environmental concerns surrounding carbon emissions have led to a growing interest in carbon capture and storage methods, further supporting the expansion of CO2 use. The UK government’s commitment to achieving net-zero carbon emissions by 2050 has sparked a rise in innovations and investments in CO2 management solutions, impacting the demand and consumption of CO2.

Size & Share of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market attained a volume of 725.80 KMT in 2024, reflecting the significant role carbon dioxide plays in multiple industries. With a projected CAGR of 1.50% during 2025-2034, the market is set to reach a volume of 842.32 KMT by 2034.

Market Size and Forecast

Market Volume in 2024: 725.80 KMT
CAGR (2025-2034): 1.50%
Market Volume by 2034: 842.32 KMT

This steady growth reflects a stable demand for carbon dioxide across industries, especially as the UK works towards sustainability targets and embraces technologies aimed at reducing its carbon footprint.

Regional Market Share

The United Kingdom carbon dioxide market is primarily concentrated in England, with substantial consumption in London, Manchester, and Birmingham, where the largest industrial and manufacturing hubs are located. Additionally, the food and beverage sector plays a pivotal role in CO2 consumption in the UK, particularly for carbonated drinks and food packaging.

While the demand for CO2 remains significant across the UK, the rise in sustainability initiatives and regulations related to emissions control is driving companies to explore alternative sources of CO2 or adopt carbon capture technologies to mitigate emissions.

Market Dynamics & Trends

Understanding the dynamics of the carbon dioxide market in the UK requires evaluating the factors driving growth as well as the current trends that are shaping the industry landscape.

Increasing Demand in the Food and Beverage Sector :The food and beverage industry is the largest consumer of carbon dioxide, with CO2 being used primarily for carbonation in drinks and in food preservation. Carbon dioxide is also used in packaging to extend the shelf life of perishable products, making it indispensable in the sector.
Role of Carbon Capture and Storage (CCS) :Carbon capture and storage (CCS) technology is a growing trend that captures CO2 emissions from industrial processes and stores them underground or repurposes them for industrial use. The UK government has implemented programs to support CCS research and development, especially in energy-intensive industries like cement manufacturing and power generation.
Medical and Healthcare Applications :CO2 has a role in the medical industry, where it is used for respiratory treatments, in certain medical procedures, and as an insufflation gas for laparoscopy surgeries. The rising number of medical procedures and increased awareness around the benefits of CO2 in healthcare applications contributes to the steady demand for CO2 in this sector.
Enhanced Oil Recovery (EOR) :The use of CO2 in enhanced oil recovery (EOR) is another significant trend. CO2 is injected into oil reservoirs to help extract additional oil from mature fields, a practice that is becoming more prevalent in the UK. This technique not only helps improve oil recovery rates but also contributes to the growing demand for CO2 in industrial applications.

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Growth of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is expected to experience steady growth, attributed to various factors such as technological advancements, environmental concerns, and increasing industrial demand.

Government Regulations and Sustainability Initiatives :The UK’s commitment to carbon neutrality by 2050 and the implementation of greenhouse gas emissions reduction strategies are key drivers of the market. The increased regulation around carbon emissions has prompted industries to adopt carbon dioxide management systems such as carbon capture, utilization, and storage (CCUS). These initiatives help lower carbon footprints while maintaining CO2 production levels.
Industrial Demand for CO2 :Several industries, such as manufacturing, steel production, and chemical processing, require carbon dioxide for various processes, such as creating chemicals and controlling pH levels in certain production environments. This industrial demand for CO2 will continue to fuel growth in the UK carbon dioxide market.
Technological Advancements :Advances in CO2 production and purification technologies will enhance the efficiency and cost-effectiveness of the market. Companies are investing in modern CO2 production plants and recycling technologies to reduce the environmental impact of CO2 production. As such, these advancements will foster both supply and demand in the UK carbon dioxide market.

Market Opportunities and Challenges

The United Kingdom carbon dioxide market presents various opportunities for growth, but there are also challenges that need to be addressed.

Opportunities

Growth in Carbon Capture and Utilization: The growth in carbon capture and utilization (CCU) technologies presents an opportunity to meet the rising demand for CO2 while addressing environmental concerns. This sector will see continued support from government incentives and investment.
Expansion in the Food & Beverage Sector: With increasing consumer demand for carbonated beverages and fresh food, there is potential for further market expansion, especially in the domestic food and beverage sector.
Government Support for Sustainable Practices: The UK government is increasingly encouraging the development of technologies aimed at reducing carbon emissions. This provides an opportunity for market players to tap into emerging areas of carbon neutrality and green technologies.

Challenges

Regulatory Compliance: With stringent environmental regulations in place, market players face challenges in ensuring compliance. Companies will need to invest in cleaner technologies to meet these regulations, which may add to operational costs.
Volatility in CO2 Supply: The supply of carbon dioxide is affected by changes in industrial activity and seasonal demand. Any disruptions in CO2 production or supply chains could impact market stability.
Environmental Concerns: Despite the growing adoption of sustainable technologies, CO2 remains a greenhouse gas. Addressing the long-term environmental impact of CO2 emissions will require increased focus on carbon capture technologies.

Competitor Analysis

The United Kingdom carbon dioxide market is home to several established players that contribute to its growth and development. Below are the key players in the market:

BOC Limited (Linde) :BOC Limited, part of the Linde Group, is one of the leading players in the carbon dioxide market in the UK. BOC provides high-quality CO2 for industrial, medical, and food applications. Their services include the provision of carbon dioxide production, distribution, and management systems across various sectors.
Air Liquide UK Ltd :Air Liquide UK Ltd is another prominent player in the United Kingdom carbon dioxide market. The company supplies industrial gases, including CO2, for applications such as food preservation, chemical manufacturing, and energy production. Air Liquide is focused on providing sustainable gas solutions and supports industries with a range of CO2-related products and services.
Nippon Gases :Nippon Gases is a leading supplier of industrial gases, including CO2, in the UK market. They provide CO2 solutions for various applications, including food and beverage, welding, and medical uses. The company is committed to offering solutions that support industrial efficiency while contributing to environmental sustainability.
Progases (UK) Ltd :Progases (UK) Ltd supplies industrial gases, including carbon dioxide, to various industries. They specialize in offering tailored CO2 solutions for food processing, beverage carbonation, and chemical industries. Progases is committed to advancing environmentally friendly and efficient CO2 production techniques.
Others :Other notable players in the market include Praxair (part of Linde Group), A-Gas International, and BASF. These companies offer comprehensive CO2 services ranging from production and distribution to carbon capture and storage technologies.