United Kingdom Carbon Dioxide Market Size, Share, Growth and Report | 2034

Business Jan 30, 2025 14 Add to Reading List

United Kingdom Carbon Dioxide Market Outlook

According to the new report, the United Kingdom carbon dioxide market size was volume of 725.80 KMT in 2024. With the growing demand for CO₂ in various industries such as food and beverage, healthcare, and manufacturing, the market is projected to expand further at a CAGR of 1.50% from 2025 to 2034, reaching a volume of 842.32 KMT by 2034.

Carbon dioxide is a colorless, odorless gas that plays a crucial role in a variety of industrial applications, including carbonation of beverages, refrigeration, and as a feedstock in the production of chemicals and fertilizers. As a byproduct of industrial processes, it is also increasingly used in the production of enhanced oil recovery (EOR) and as an important component in environmental and energy solutions. As industries continue to grow and innovate, CO₂’s diverse utility is expected to drive its market growth in the United Kingdom.

Drivers of Market Growth

Several factors are contributing to the sustained growth of the United Kingdom carbon dioxide market. The primary driver is the increasing demand for CO₂ in the food and beverage sector, where it is used for carbonation, preservation, and as a refrigerant in the food supply chain. In the beverage industry, CO₂ is an essential ingredient for carbonating sodas, beers, sparkling water, and other fizzy drinks. The consumption of carbonated beverages has been steadily increasing, contributing significantly to the demand for CO₂. Moreover, the trend towards healthier, low-calorie, and non-alcoholic carbonated drinks is providing additional growth opportunities for the CO₂ market.

The growing demand for United Kingdom carbon dioxide market in the healthcare industry is another key factor driving market growth. CO₂ is used in medical applications, such as in medical-grade gases for respiratory treatments, insufflation during minimally invasive surgeries, and as a tool in medical imaging procedures like endoscopy. The increasing number of minimally invasive surgeries and the rise in respiratory disorders such as asthma and COPD (chronic obstructive pulmonary disease) are expected to boost the demand for CO₂ in healthcare settings.

Additionally, the use of CO₂ as a refrigerant in the cold storage and transportation of perishable goods is growing, driven by an increased focus on food safety and supply chain efficiency. CO₂-based refrigeration systems, particularly in supermarkets, warehouses, and the food processing industry, offer an environmentally friendly alternative to traditional refrigerants. This trend aligns with the United Kingdom's commitment to sustainability and environmental goals, further supporting the expansion of the CO₂ market.

Technological Advancements and Innovations

Technological advancements in CO₂ capture, storage, and utilization are also contributing to the United Kingdom carbon dioxide market growth. One of the most promising innovations is carbon capture and storage (CCS) technology, which allows the capture of CO₂ emissions from industrial processes and their storage underground. This technology is gaining traction as part of the United Kingdom’s efforts to achieve its net-zero emissions target by 2050. The use of CO₂ for enhanced oil recovery (EOR) in oil fields is another area where technological innovation is playing a role, allowing for increased oil extraction while reducing CO₂ emissions.

Moreover, there is a growing interest in the use of CO₂ in the production of valuable products, such as biofuels, chemicals, and synthetic fuels. This is known as carbon capture and utilization (CCU) technology, and it presents significant opportunities for the CO₂ market to expand beyond its traditional applications. The potential to create sustainable products from CO₂ can help address the growing demand for renewable energy sources and contribute to the United Kingdom’s decarbonisation goals.

Furthermore, innovations in CO₂ refrigeration and cooling technologies are improving energy efficiency and reducing the carbon footprint of cooling systems. CO₂-based refrigeration systems are being increasingly adopted as an eco-friendly alternative to conventional systems that rely on hydrofluorocarbons (HFCs), which have a higher global warming potential. The trend towards green refrigeration technologies is likely to drive the demand for CO₂, especially in sectors such as retail, food processing, and cold chain logistics.

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United Kingdom Carbon Dioxide Market Segmentation

The market can be divided based on source, production and 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 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 and Barriers

Despite its growing applications and demand, the United Kingdom carbon dioxide market faces several challenges. One of the key barriers is the volatility in CO₂ supply, which can result from fluctuations in production processes and availability. The market relies on the production of CO₂ as a byproduct of industrial activities, particularly from ammonia production and natural gas processing. Disruptions in these industries can lead to supply shortages, which may impact industries that rely heavily on CO₂, such as food and beverage production.

Furthermore, while CO₂ is a crucial component of many industrial processes, the environmental impact of CO₂ emissions remains a significant concern. Efforts to capture and utilize CO₂ emissions are still in the early stages of development, and the cost of implementing these technologies can be high. However, continued innovation and government incentives are expected to mitigate these challenges over time.

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