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

The United Kingdom carbon dioxide (CO₂) market plays a crucial role across various industries, from manufacturing and healthcare to food and beverage, and oil & gas. As CO₂ is widely used for industrial purposes such as refrigeration, fire suppression, and enhanced oil recovery, the market continues to be an essential component of the country’s industrial landscape. In 2024, the UK carbon dioxide market reached a volume of 725.8 KMT (kilotons), and it is projected to grow at a modest compound annual growth rate (CAGR) of 1.5% from 2025 to 2034. By 2034, the market is expected to attain a volume of 840.5 KMT. This blog will explore the United Kingdom’s carbon dioxide market in-depth, including its size, trends, growth, analysis, and future forecast.

United Kingdom Carbon Dioxide Market Overview

The United Kingdom’s carbon dioxide market encompasses the production, supply, and use of CO₂ in a wide range of sectors. CO₂ is primarily produced through industrial processes, such as the production of ammonia, ethanol, and hydrogen. It is captured and then utilized in various industries like food and beverage for carbonation, the oil and gas industry for enhanced oil recovery, and healthcare for respiratory treatments.

CO₂ is an important industrial gas due to its versatility and cost-effectiveness in various applications. However, the UK market faces challenges related to CO₂ production and supply, particularly in times of industrial shutdowns or supply chain disruptions. Despite these challenges, the market remains vital to the economy, with increasing demand across several sectors fueling its continued growth.

United Kingdom Carbon Dioxide Market Size

In 2024, the carbon dioxide market in the United Kingdom reached a volume of 725.8 KMT. The market has witnessed steady demand across industrial and consumer sectors, with significant consumption in food and beverage carbonation, healthcare, and industrial applications such as welding and manufacturing.

Over the forecast period from 2025 to 2034, the UK carbon dioxide market is expected to grow at a CAGR of 1.5%, reaching a volume of 840.5 KMT by 2034. This growth is attributed to factors such as increasing demand in the food and beverage industry, the expansion of CO₂ use in the medical and healthcare sectors, and the continued reliance on CO₂ for industrial applications.

United Kingdom Carbon Dioxide Market Trends

Several key trends are shaping the carbon dioxide market in the UK:

Sustainability and Carbon Capture: With rising environmental concerns, there is an increasing push for sustainability in CO₂ production. Carbon capture, utilization, and storage (CCUS) technologies are gaining traction as a way to reduce emissions and utilize CO₂ for various industrial processes. The UK government’s commitment to achieving net-zero emissions by 2050 further drives investments in carbon capture technologies.

Demand from Food and Beverage Industry: The food and beverage sector remains one of the largest consumers of carbon dioxide in the UK, particularly in the carbonation of soft drinks and other beverages. As the demand for carbonated beverages continues, CO₂ consumption in this sector is expected to remain stable and continue to grow.

Healthcare Applications: Carbon dioxide is essential for medical applications, such as respiratory treatments, as well as in surgical procedures like insufflation during laparoscopy. The growing healthcare sector and the increasing focus on medical advancements in the UK are contributing to a steady rise in CO₂ consumption for medical purposes.

Environmental Regulations: As the UK government sets more stringent environmental regulations, there is a greater emphasis on reducing emissions and optimizing CO₂ usage. The implementation of emission reduction policies and carbon pricing schemes is encouraging industries to adopt sustainable practices, driving the need for cleaner and more efficient CO₂ production methods.

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United Kingdom Carbon Dioxide Market Segmentation

Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU

Production:
Biological
Combustion

End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others

United Kingdom Carbon Dioxide Market Growth

The UK carbon dioxide market is poised for steady growth, driven by multiple factors:

Industrial Demand: The demand for carbon dioxide in industrial processes, such as enhanced oil recovery, metal production, and water treatment, is expected to maintain a steady upward trajectory. Additionally, CO₂ is essential for various manufacturing processes such as refrigeration, welding, and chemical production, all of which continue to see demand growth.

Food and Beverage Sector Expansion: The UK’s food and beverage industry remains a significant driver of CO₂ consumption, as carbon dioxide is widely used for food preservation, carbonation, and packaging. The market for carbonated soft drinks, sparkling water, and alcoholic beverages continues to expand, supporting steady growth in CO₂ demand from this sector.

Healthcare and Medical Applications: The healthcare sector’s reliance on CO₂ for medical procedures such as insufflation during surgeries and for respiratory support is expected to grow. An aging population, along with an increased focus on minimally invasive surgeries, will continue to drive the demand for CO₂ in medical and healthcare applications.

Sustainability Initiatives: As industries focus on reducing their environmental footprints, there will be greater demand for CO₂ that is captured through carbon capture and storage (CCS) technologies. This aligns with global sustainability goals and the UK’s commitment to reducing carbon emissions by 2050, which will likely support the market growth of CO₂.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is influenced by various economic, environmental, and industrial factors. Key insights into the market include:

Key Drivers: The major drivers for the market include the increasing demand for CO₂ in food and beverage carbonation, medical applications, and industrial uses. Furthermore, the push toward sustainability and carbon capture technologies is likely to support market growth.

Challenges: Challenges faced by the market include supply chain disruptions, especially in the production of CO₂ during industrial shutdowns. Additionally, fluctuations in the production of ammonia and ethanol, which are primary sources of CO₂, can create market volatility.

Market Segmentation: The market is segmented based on applications (such as food and beverage, healthcare, and industrial use), production methods (such as fermentation, ammonia production, and natural CO₂ sources), and distribution methods (such as bulk CO₂ and packaged CO₂).

United Kingdom Carbon Dioxide Market Forecast (2025-2034)

The UK carbon dioxide market is projected to grow at a steady pace over the forecast period from 2025 to 2034. At a CAGR of 1.5%, the market is expected to reach a volume of 840.5 KMT by 2034. The key drivers of this growth will include continued demand from the food and beverage sector, technological advancements in CO₂ production, and the increasing adoption of CO₂ for healthcare applications. Additionally, the push for sustainability and carbon capture initiatives will further bolster the market during the forecast period.

Competitor Analysis

The UK carbon dioxide market is competitive, with several key players dominating the industry. Some of the leading companies in the market include:

Ensus UK Limited: Ensus is one of the largest CO₂ producers in the UK, primarily focused on producing CO₂ from bioethanol production. The company plays a significant role in supplying CO₂ for various industrial applications.

BioCarbonics Ltd.: Specializing in providing CO₂ to the food and beverage industry, BioCarbonics is an important player in the UK market, offering high-quality CO₂ for use in carbonation, food preservation, and other applications.

Tata Chemicals Europe Limited: A leading player in the production of CO₂ and other industrial gases, Tata Chemicals Europe is known for its role in supplying CO₂ for a variety of sectors, including food and beverage, healthcare, and industrial manufacturing.

Yara International ASA: Yara is a global leader in the production of CO₂ as a byproduct of ammonia production. The company plays a key role in supplying CO₂ for industrial uses such as enhanced oil recovery and metal production.

Air Products PLC: A major player in the global industrial gas market, Air Products supplies CO₂ for use in food and beverage, healthcare, and industrial applications. The company is well-positioned to cater to the UK’s growing demand for CO₂.

BOC Limited (Linde): BOC Limited, a subsidiary of Linde, is a key supplier of industrial gases, including CO₂, to the UK market. The company provides CO₂ for applications across various industries, including healthcare, manufacturing, and food processing.

Air Liquide UK Ltd: A major supplier of industrial gases in the UK, Air Liquide provides CO₂ for a variety of industries, including food and beverage, chemical manufacturing, and healthcare.