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

The United Kingdom carbon dioxide market has been witnessing steady demand across multiple industries, including food and beverage, healthcare, and industrial applications. In 2024, the market attained a volume of 725.80 KMT and is estimated to grow at a CAGR of 1.50% from 2025 to 2034. This growth trajectory is expected to propel the market to a volume of approximately 842.32 KMT by 2034. This article delves into various aspects of the market, including its overview, market size and share, dynamics, growth factors, opportunities, challenges, and key players that are driving the market’s expansion.

Overview of the United Kingdom Carbon Dioxide Market

The carbon dioxide (CO₂) market in the United Kingdom is an essential part of the country’s industrial and commercial ecosystem. CO₂ is widely used in several industries, including the food and beverage sector, healthcare, and chemical manufacturing, as well as in industrial applications such as welding and enhanced oil recovery. Its demand is expected to rise steadily due to its key role in these applications and the expanding usage of CO₂ in carbon capture and storage technologies.

In 2024, the market volume for CO₂ in the UK stood at 725.80 KMT, and its steady increase in volume is forecasted to continue, driven by several key factors. Among these are the demand for carbonated beverages, food preservation, and the use of CO₂ in medical and industrial applications. By 2034, the market is projected to reach a volume of 842.32 KMT, with a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034.

Size & Share of the United Kingdom Carbon Dioxide Market

The size and share of the United Kingdom carbon dioxide market reflect the diverse applications that CO₂ supports. The market’s size, standing at 725.80 KMT in 2024, indicates a stable demand across its sectors.

  1. Food and Beverage Industry: The food and beverage industry remains the largest consumer of CO₂, where it is primarily used for carbonation, food preservation, and packaging. The rising consumption of carbonated drinks, alcoholic beverages, and packaged food drives much of the market’s share.
  2. Healthcare Sector: In the healthcare sector, CO₂ is used in medical treatments, laparoscopic surgeries, and respiratory therapies. The increasing prevalence of surgeries and growing healthcare needs contribute to the demand for CO₂.
  3. Industrial Applications: CO₂ is heavily used in welding, chemical production, and metal production. It also plays a role in enhanced oil recovery (EOR) processes. As industrial activities expand, the need for CO₂ across these applications increases.

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Market Dynamics & Trends in the United Kingdom Carbon Dioxide Market

The market for carbon dioxide in the United Kingdom is influenced by several dynamics and trends. These factors include technological advancements, regulatory changes, and evolving consumer preferences.

  1. Increased Demand in the Food and Beverage Industry :The food and beverage sector is the largest consumer of CO₂ in the UK. CO₂ is essential in the carbonation of soft drinks, alcoholic beverages, and sparkling water. In addition, CO₂ is used for modified atmosphere packaging (MAP), which helps extend the shelf life of perishable goods such as fresh meat and vegetables. As the demand for convenience foods and carbonated beverages continues to grow, the food and beverage industry will drive the market’s demand for CO₂.
  2. Technological Advancements and Sustainability :Technological advancements in CO₂ production, including carbon capture and storage (CCS) technologies, are influencing the market’s trajectory. The United Kingdom’s push towards net-zero emissions by 2050 has led to an increased focus on capturing and utilizing CO₂, which not only addresses environmental concerns but also creates new avenues for its use. These advancements allow industries to reduce their carbon footprint while still meeting their CO₂ requirements.
  3. Rising Use in Healthcare :CO₂ plays a critical role in medical procedures such as laparoscopic surgeries, which require the use of CO₂ to inflate the abdomen for easier access to internal organs. CO₂ is also used in respiratory therapies and in the production of medical gases. With the growing healthcare demands in the UK, particularly due to an aging population, the demand for CO₂ in healthcare applications is expected to increase.
  4. Growing Industrial Applications :In addition to its use in the food, beverage, and healthcare sectors, CO₂ also plays an important role in industrial applications, including welding, metal production, and chemical production. The use of CO₂ in these industries continues to grow as industries modernize their processes and implement more efficient technologies. Additionally, enhanced oil recovery (EOR) techniques, which use CO₂ to extract additional oil from reservoirs, also contribute to market growth.

Growth of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is projected to grow at a CAGR of 1.50% during the forecast period from 2025 to 2034. This steady growth can be attributed to several factors:

  1. Increasing Demand from Food and Beverage Sector: The food and beverage industry’s demand for CO₂ continues to rise due to the growing consumption of carbonated drinks, packaged foods, and convenience items. As consumer preferences evolve, the market is poised for further growth.
  2. Technological Innovation: The adoption of carbon capture and bio-based CO₂ production technologies is contributing to the market’s growth, as these technologies offer sustainable solutions that reduce CO₂ emissions and improve production efficiency.
  3. Expansion in Healthcare: The increasing use of CO₂ in medical procedures and respiratory treatments will further boost market demand. The growing demand for healthcare services in the UK provides a steady source of growth for CO₂ consumption.
  4. Industrial Growth: As the UK continues to modernize its industrial capabilities, the demand for CO₂ in applications such as welding, chemical production, and oil recovery will continue to grow.

By 2034, the market volume is expected to increase to 842.32 KMT, with CO₂ being utilized across a variety of industries, driven by technological advancements, sustainability initiatives, and growing industrial demands.

Market Opportunities and Challenges in the United Kingdom Carbon Dioxide Market

Opportunities

  1. Carbon Capture and Storage (CCS): With the UK’s commitment to achieving net-zero emissions by 2050, CO₂ capture and storage technologies present significant growth opportunities. As industries face pressure to reduce their carbon emissions, CCS technologies will be essential in meeting regulatory targets, while providing an additional market for CO₂.
  2. Bio-based CO₂ Production: The growing interest in bio-based CO₂ production offers an opportunity for market players to innovate and invest in sustainable CO₂ production methods. This process, which utilizes renewable resources, presents a green alternative to traditional fossil fuel-based CO₂ production.
  3. Healthcare Expansion: The expansion of the healthcare sector in the UK, particularly in medical procedures and respiratory therapies, provides a growing opportunity for CO₂ suppliers. Medical applications are expected to become an increasingly important segment of the CO₂ market.
  4. Enhanced Oil Recovery: CO₂’s use in enhanced oil recovery (EOR) techniques provides another avenue for market expansion. As oil companies look for ways to maximize oil extraction from mature reservoirs, CO₂ plays a key role in improving recovery rates.

Challenges

  1. Supply Chain Disruptions: The CO₂ market is susceptible to supply chain disruptions, including those related to transportation, production, and storage. Any interruptions in the supply of CO₂ can have a significant impact on industries that depend on a consistent CO₂ supply.
  2. Environmental Concerns: Despite its widespread use, CO₂ is still a greenhouse gas that contributes to climate change. As regulatory pressure on carbon emissions increases, the market will need to focus on sustainable CO₂ production methods to mitigate environmental impact.
  3. Price Volatility: The price of CO₂ can be volatile, influenced by factors such as production costs, regulatory changes, and shifts in demand across industries. Price fluctuations can affect industries that rely on CO₂ for their operations, particularly in the food and beverage sector.

Competitor Analysis in the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is highly competitive, with several major companies playing a crucial role in the supply and distribution of CO₂.

  1. BOC Limited (Linde) :BOC Limited, part of the Linde Group, is a major player in the UK market. The company offers CO₂ for various applications, including food and beverage, healthcare, and industrial processes. With a strong distribution network and commitment to sustainability, BOC is a key contributor to the market’s growth.
  2. Air Liquide UK Ltd :Air Liquide is another leading supplier of industrial gases, including CO₂. The company provides CO₂ for food and beverage, healthcare, and chemical industries and focuses on sustainable solutions and carbon capture technologies.
  3. Nippon Gases :Nippon Gases supplies CO₂ for industrial and medical uses across the UK. The company is known for its focus on innovative CO₂ production methods, including carbon capture technologies, and has a strong presence in key sectors such as food preservation and medical gases.
  4. Progases (UK) Ltd :Progases (UK) Ltd supplies CO₂ across various industries, including welding, food and beverage, and chemical manufacturing. With a focus on high-purity CO₂ and sustainable production, Progases is a growing player in the UK market.
  5. Others :Other regional and smaller suppliers also contribute to the UK carbon dioxide market, catering to specific local demands and niche industries. These companies focus on innovation, customer service, and sustainability to stay competitive in a growing market.

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