According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size attained a volume of 725.80 KMT in 2024. Aided by the increasing demand for carbon dioxide in various industries, including food and beverage, healthcare, and manufacturing, the market is projected to further grow at a CAGR of 1.50% between 2025 and 2034 to reach a volume of 842.32 KMT by 2034.
Carbon dioxide (CO2) is a versatile gas with numerous applications across multiple industries. It is commonly used in the food and beverage sector for carbonating soft drinks and beer, in healthcare for respiratory therapies, and in industrial processes such as welding, fire suppression, and enhanced oil recovery. Additionally, CO2 is increasingly being utilised in sustainable and environmental applications, such as carbon capture and storage (CCS), contributing to its growing market demand.
The rising demand for carbonated beverages is a major driver of the United Kingdom carbon dioxide market growth. The expanding soft drinks and beer industries rely on CO2 for carbonation, and with the increasing consumer preference for sparkling beverages, the demand for high-quality food-grade CO2 is witnessing a significant upsurge. Moreover, the food industry utilises CO2 for modified atmosphere packaging (MAP), which extends the shelf life of perishable goods, thereby further propelling market expansion.
In the healthcare sector, carbon dioxide is widely used in medical applications, such as respiratory treatments, insufflation during laparoscopic surgeries, and cryotherapy. The growing prevalence of respiratory diseases, coupled with advancements in medical technology, is expected to drive the demand for medical-grade CO2 in the United Kingdom. Additionally, the expanding pharmaceutical industry is further contributing to the steady growth of the market.
The increasing emphasis on sustainable and environmental initiatives is another key factor bolstering the United Kingdom carbon dioxide market. Carbon capture and storage (CCS) technologies are gaining traction as the government and industries focus on reducing greenhouse gas emissions. CO2 is captured from industrial processes and stored underground to mitigate its impact on the environment. The growing adoption of CCS technologies is expected to create new opportunities for the carbon dioxide market in the country.
Furthermore, CO2 plays a crucial role in industrial and manufacturing processes. It is widely used in welding applications, as well as in enhanced oil recovery (EOR) to improve oil extraction from reservoirs. The expanding manufacturing and oil and gas sectors in the United Kingdom are anticipated to drive the demand for industrial-grade CO2 over the forecast period.
The increasing research and development activities aimed at discovering innovative applications of CO2 are also contributing to market growth. CO2 is being explored for use in greenhouses to enhance plant growth, in dry ice blasting for industrial cleaning, and in supercritical fluid extraction for pharmaceuticals and food products. These emerging applications are expected to provide lucrative opportunities for the United Kingdom carbon dioxide market.
However, the market faces certain challenges, including the stringent environmental regulations governing CO2 emissions. The United Kingdom has committed to achieving net-zero emissions by 2050, leading to regulatory pressures on industries that emit CO2. This has resulted in increased investments in carbon reduction technologies and alternative solutions, which could impact the overall market dynamics. Additionally, supply chain disruptions and fluctuations in CO2 availability pose potential risks to market stability.
Despite these challenges, the future of the United Kingdom carbon dioxide market remains promising. The increasing demand for CO2 across various industries, coupled with technological advancements and sustainability initiatives, is expected to drive market growth over the forecast period. The integration of carbon capture and utilisation (CCU) technologies, along with the expansion of CO2-based applications, will further strengthen the market outlook in the coming years.
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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
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