United Kingdom Carbon Dioxide Market Size, Share, Trends & Forecast | 2034

United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market attained a value of 725.80 KMT in 2024. Aided by the growing demand for CO2 across diverse sectors including food and beverage, healthcare, and industrial applications, the market is projected to further grow at a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034, reaching a value of 842.32 KMT by 2034.

United Kingdom carbon dioxide market size is a crucial industrial gas with applications spanning from food preservation to enhanced oil recovery. The market’s growth is primarily driven by increasing demand for CO2 in the food and beverage industry for carbonation and preservation, the healthcare sector for medical applications, and the industrial sector for various manufacturing processes. Moreover, as the United Kingdom strives to meet its environmental targets, innovations in CO2 capture and utilization are expected to shape the market’s trajectory in the years ahead.

Key Drivers of Market Growth

Increasing Demand from the Food and Beverage Industry: The food and beverage industry remains one of the largest consumers of carbon dioxide in the UK. CO2 is extensively used in carbonating soft drinks, beer, sparkling water, and other carbonated beverages. The UK’s growing demand for low-calorie, low-sugar, and alternative beverages, including plant-based drinks, continues to fuel the demand for CO2 in beverage carbonation.

Additionally, CO2 is used for food preservation, particularly in packaging solutions. Modified atmosphere packaging (MAP), which utilizes CO2, helps prolong the shelf life of fresh produce, meats, and ready-to-eat meals by inhibiting the growth of bacteria and molds. The increased focus on preserving food quality and reducing waste is driving the adoption of CO2-based preservation methods, contributing to the market’s growth.

As consumer habits continue to shift toward healthier and more sustainable options, the food and beverage industry will remain a key driver of CO2 demand in the UK.

Healthcare and Medical Applications: Carbon dioxide plays a vital role in the healthcare industry, primarily in medical procedures and treatments. CO2 is used as an insufflation agent in minimally invasive surgeries, such as laparoscopic and arthroscopic procedures. By inflating the abdominal cavity, CO2 creates space for surgeons to operate, enhancing the safety and effectiveness of these procedures.

Moreover, CO2 is essential in the production of medical-grade aerosols, including inhalers and respiratory treatments. With the growing demand for medical devices and respiratory care products, CO2 is expected to remain a critical component in this market.

The aging population in the UK, coupled with the rising prevalence of chronic respiratory conditions, is expected to contribute to the continued demand for CO2 in the healthcare sector.

Industrial Applications and Enhanced Oil Recovery: Carbon dioxide’s versatility extends to industrial applications, where it is used in chemical manufacturing, metal production, and refrigeration. CO2 is a key ingredient in the production of chemicals such as urea and methanol, which are used in fertilizers, plastics, and automotive parts.

One of the major industrial uses of CO2 is in enhanced oil recovery (EOR). In this process, CO2 is injected into oil reservoirs to increase pressure, improving the flow of oil and maximizing extraction rates. The oil and gas industry’s demand for CO2 in EOR applications remains strong, particularly as the UK continues to rely on oil and gas resources to meet its energy needs.

Additionally, CO2 is used in various refrigeration systems, particularly in industries that require precise temperature control, such as food processing, pharmaceuticals, and healthcare. With growing industrial activities, the demand for CO2 in these sectors will continue to support the market’s growth.

Focus on Carbon Capture and Utilization (CCU): The United Kingdom has made significant strides toward reducing its carbon footprint, with a target to achieve net-zero emissions by 2050. This has led to an increased focus on carbon capture and utilization (CCU) technologies, which enable the capture of CO2 emissions from industrial processes and their subsequent reuse.

CCU technologies, such as carbon capture and storage (CCS) and the conversion of CO2 into useful products like biofuels or chemicals, are emerging as key solutions to reduce overall emissions. The UK government’s commitment to sustainability and decarbonization presents opportunities for businesses and innovators in the CO2 market.

The development and implementation of CCU technologies will be crucial to meeting the UK’s environmental targets while simultaneously creating new markets for CO2. The growing focus on CCU is likely to be a significant driver of demand in the UK carbon dioxide market over the next decade.

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United Kingdom Carbon Dioxide Market Segmentation     

The United Kingdom carbon dioxide market can be divided based on source, production, end use

Breakup by Source

• Ammonia
• Ethyl Alcohol
• Substitute Natural Gas and CCU

Breakup by Production

• Biological
• Combustion

Breakup by End Use

• Food and Beverages
• Oil and Gas
• Medical
• Metal Fabrication
• Others

Competitive Landscape

Some of the major key players explored in the report by Expert Market Research are as follows:

• Ensus UK Limited
• BioCarbonics Ltd.
• Tata Chemicals Europe Limited
• Yara International ASA
• Air Products PLC
• BOC Limited (Linde)
• Air Liquide UK Ltd
• Nippon Gases
• Progases (UK) Ltd
• Others

Challenges in the Market

Despite the favorable growth outlook, the UK carbon dioxide market faces several challenges. One of the primary concerns is the reliance on conventional CO2 production methods, which typically involve the use of natural gas or other fossil fuels. This process contributes to the release of greenhouse gases, which contradicts the UK's efforts to reduce carbon emissions.

Additionally, the transportation and storage of CO2 present logistical challenges. The distribution of CO2 often requires long-distance pipelines or tankers, and any disruption to these infrastructure systems could result in supply shortages or increased costs. Furthermore, CO2 is a high-pressure gas, making its storage and handling a complex and costly process.

As such, there is a need for continued investment in infrastructure, transportation networks, and storage facilities to ensure the continued availability and safe handling of CO2 across industries.

Technological Innovations and Future Outlook

The UK carbon dioxide market is on the brink of significant transformation, driven by advances in technology and a growing emphasis on environmental sustainability. Technological innovations, particularly in CO2 capture and utilization, are expected to play a key role in the market’s future growth. New methods for capturing CO2 from industrial emissions, combined with efficient storage and utilization strategies, will help mitigate the environmental impact of CO2 production.

Furthermore, the development of bio-based CO2 production methods, such as through algae or other biological processes, could offer a more sustainable alternative to traditional CO2 production techniques. These technologies could lead to a cleaner, more circular CO2 economy, where CO2 is not only a byproduct but also a valuable resource for other industrial processes.

The continued transition to renewable energy and the increasing adoption of sustainable practices across industries will further accelerate the demand for CO2 in various applications. As businesses across the UK strive to meet stringent environmental standards, innovations in CO2 production, capture, and utilization will provide new opportunities for growth in the market.

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