The United Kingdom carbon dioxide market is witnessing steady growth due to its essential role in various industries, including food and beverages, healthcare, chemical manufacturing, and industrial applications. In 2024, the market attained a volume of 725.80 KMT (thousand metric tons), and it is projected to grow at a CAGR of 1.50% from 2025 to 2034. This growth is expected to take the market volume to 842.32 KMT by 2034. As industries increasingly focus on sustainability and innovation, the market for carbon dioxide in the UK continues to evolve.
This article explores key aspects of the United Kingdom carbon dioxide market, including market size, share, dynamics, growth drivers, opportunities, challenges, and key competitors in the industry.
Overview of the United Kingdom Carbon Dioxide Market
Carbon dioxide (CO₂) is a colorless, odorless gas widely used in various applications such as carbonated beverages, medical use, food preservation, fire suppression, welding, and chemical production. In the United Kingdom, CO₂ plays a significant role in industries that require specialized gas solutions. It is produced primarily through industrial processes such as the combustion of fossil fuels or as a byproduct of ammonia production.
The demand for CO₂ in the UK is shaped by several factors, including industrial activities, government regulations, and technological advancements in CO₂ recovery. The carbon dioxide market has also expanded with the rising interest in carbon capture and storage (CCS) technologies, which are pivotal for reducing greenhouse gas emissions.
The food and beverage industry is the largest consumer of carbon dioxide in the UK, accounting for a substantial portion of market demand. Carbon dioxide is primarily used in carbonated drinks like sodas, beers, and sparkling water, as well as for refrigeration and food freezing applications. The market also benefits from increasing demand in sectors such as healthcare, where CO₂ is used in medical treatments, and industrial production, particularly in welding and metal fabrication.
Market Size Share
As of 2024, the United Kingdom carbon dioxide market stands at a volume of 725.80 KMT. This figure demonstrates the continued demand for CO₂ across various industrial and commercial applications. The market is expected to grow steadily over the next decade at a CAGR of 1.50%, reaching 842.32 KMT by 2034.
The growth trajectory of the UK carbon dioxide market is influenced by several factors, including the increasing consumption of carbon dioxide in the food and beverage industry, the adoption of CO₂ in medical and healthcare applications, and the expanding use of CO₂ in welding and chemical manufacturing. The food and beverage sector remains the dominant driver of market share, followed by industrial applications such as oil and gas recovery, metal production, and chemical manufacturing.
Regional variations also impact market size and share. For instance, urban areas with higher food and beverage manufacturing capabilities, healthcare institutions, and industrial zones tend to account for a more significant portion of the CO₂ consumption.
Market Dynamics Trends
Growing Demand from the Food and Beverage Sector :The demand for carbon dioxide in the food and beverage industry continues to rise, especially with the growing popularity of carbonated drinks. CO₂ is essential for carbonating beverages and is also used for freezing and refrigerating food products. As consumer preferences for carbonated beverages and convenience foods increase, the demand for CO₂ in this sector will remain strong.
Environmental Regulations and Focus on Sustainability :Increasing environmental regulations and the push for sustainability are major drivers of the carbon dioxide market. The UK government has set ambitious climate targets, including net-zero emissions by 2050, which influences industries to reduce their carbon footprint. Consequently, many industries are exploring carbon capture and storage (CCS) solutions to capture CO₂ emissions and store them underground to mitigate environmental impact.
Technological Advancements in CO₂ Recovery :The development of new technologies focused on CO₂ capture and recycling has opened new possibilities in the UK market. Industries are investing in systems to recover and reuse CO₂ from industrial processes, which helps reduce waste and lowers operational costs. As CO₂ recycling and recovery technologies improve, they will become increasingly common across industries that rely on carbon dioxide, such as food processing, chemical production, and oil and gas extraction.
CO₂ Usage in Healthcare and Medical Applications :The healthcare industry is an essential segment of the UK carbon dioxide market, with CO₂ used in several medical applications. Laparoscopic surgeries and respiratory treatments are two key areas where CO₂ is utilized. The aging population in the UK and the rising need for advanced healthcare solutions will contribute to the growth of CO₂ demand in medical applications. Additionally, CO₂ is also used in the production of pharmaceuticals and insulin.
Get a Free Sample Report with a Table of Contents:
https://www.expertmarketresearch.com/reports/united-kingdom-carbon-dioxide-market/requestsample
Growth of the United Kingdom Carbon Dioxide Market
The UK carbon dioxide market is expected to grow steadily in the coming years, with a CAGR of 1.50% from 2025 to 2034. This growth can be attributed to several factors:
Expansion of the Food and Beverage Industry: The increasing consumption of carbonated drinks, frozen foods, and packaged food products will continue to drive CO₂ demand in the food and beverage industry.
Healthcare Industry Growth: With a growing focus on healthcare innovations and medical treatments, the demand for CO₂ in medical applications will increase, particularly in surgical procedures and respiratory care.
Technological Innovations: The advancement of carbon capture and storage (CCS) and bio-based CO₂ production technologies will reduce the environmental impact of CO₂ production while providing a sustainable source of the gas for various applications.
Increased Industrial Use of CO₂: The continued use of CO₂ in welding, metal production, and enhanced oil recovery will contribute to market growth.
Policy Support: Government incentives and policies promoting sustainability and energy efficiency will stimulate the adoption of CO₂ capture and recycling technologies, benefiting the carbon dioxide market.
Market Opportunities and Challenges
Opportunities
Carbon Capture and Storage (CCS): The growing emphasis on reducing greenhouse gas emissions presents an opportunity for companies to expand their services in CO₂ capture, storage, and recycling. The implementation of CCS technologies will create new avenues for carbon dioxide supply.
Growth in Healthcare and Medical Applications: As the healthcare sector continues to evolve and expand, the use of CO₂ in medical devices, surgical operations, and respiratory treatments will increase, offering opportunities for market growth.
Bio-based CO₂ Production: As environmental sustainability becomes a priority for businesses, bio-based CO₂ production methods provide a greener alternative to traditional CO₂ production methods, opening up new market opportunities for producers and innovators in the industry.
Rising Demand for Carbonated Drinks: The growing demand for carbonated beverages and packaged food products will continue to increase the demand for CO₂ in the food and beverage sector.
Challenges
Supply Chain and Distribution Challenges: The production, storage, and transportation of carbon dioxide are faced with logistical challenges. Disruptions in the supply chain can impact CO₂ availability, especially in sectors with high demand.
Environmental Concerns: Despite the widespread use of CO₂ in various industries, the environmental impact of CO₂ emissions remains a challenge. Although CO₂ capture technologies are being developed, their widespread adoption faces technical, regulatory, and economic barriers.
Volatility in CO₂ Pricing: The pricing of carbon dioxide can be volatile due to fluctuations in global supply, demand, and regulatory changes. This price volatility can affect industries reliant on CO₂, particularly those with tight profit margins.
Competitor Analysis
Several prominent players dominate the United Kingdom carbon dioxide market, providing industrial gas solutions across various sectors. Some of the key players include:
BOC Limited (Linde) :BOC Limited, part of the Linde Group, is one of the leading suppliers of carbon dioxide in the UK. The company provides CO₂ for applications in food and beverages, healthcare, chemical manufacturing, and industrial processes. BOC is well known for its strong distribution network and focus on sustainability.
Air Liquide UK Ltd :Air Liquide is another major player in the UK carbon dioxide market. The company supplies CO₂ for a variety of applications, including food processing, healthcare, and chemical industries. Air Liquide’s commitment to eco-friendly CO₂ production and its innovative solutions make it a key competitor in the market.
Nippon Gases :Nippon Gases, a global supplier of industrial gases, provides CO₂ for a wide range of applications across industries like food and beverage, healthcare, and manufacturing. The company focuses on providing high-quality CO₂ with an emphasis on sustainability and innovation.
Progases (UK) Ltd :Progases (UK) Ltd is a prominent supplier of CO₂ and other industrial gases in the UK. The company caters to industries such as food and beverage, healthcare, and chemical manufacturing, offering both standard and high-purity CO₂ solutions.
Others :In addition to these key players, other regional suppliers and smaller companies play a role in fulfilling the CO₂ needs of specialized applications. These players contribute to the competitive landscape and support market growth across the UK.
Explore our trending Blogs and Reports :
Top Construction Companies
HVAC Variable Frequency Drive Market
