United Kingdom Carbon Dioxide Market Size & Growth 2025-2034

The United Kingdom carbon dioxide (CO2) market is poised for steady growth in the coming years. In 2024, the market reached a volume of 725.8 KMT (kilotonnes), and it is expected to grow at a compound annual growth rate (CAGR) of 1.5% during the forecast period from 2025 to 2034. By 2034, the UK CO2 market is projected to reach a volume of approximately 840.5 KMT. In this blog post, we’ll explore the United Kingdom carbon dioxide market, focusing on its overview, market size, trends, growth prospects, and key competitors.

United Kingdom Carbon Dioxide Market Overview

The carbon dioxide market in the United Kingdom plays a critical role in a wide range of industries, including food and beverage, healthcare, agriculture, oil and gas, and manufacturing. CO2 is used for various purposes such as carbonating beverages, fire suppression, as a refrigerant, and in the chemical industry. The demand for CO2 has remained robust due to its versatile applications, and as the UK economy continues to recover and industrial activities ramp up, the demand for carbon dioxide is expected to rise gradually.

United Kingdom Carbon Dioxide Market Size

In 2024, the United Kingdom carbon dioxide market reached a volume of 725.8 KMT. The primary demand for CO2 in the UK comes from the food and beverage industry, where it is widely used for carbonation, freezing, and preservation. Other significant end-use industries include healthcare (for medical applications like oxygen generation and anesthesia), agriculture (for crop growth and storage), and manufacturing.

The UK market size is expected to increase over the forecast period, driven by consistent demand across key sectors. The volume of carbon dioxide produced and consumed in the country is set to grow gradually, supported by an annual growth rate of 1.5% over the next decade, resulting in an estimated volume of 840.5 KMT by 2034.

United Kingdom Carbon Dioxide Market Trends

Several trends are currently shaping the United Kingdom carbon dioxide market:

Rising Demand in the Food and Beverage Industry: The food and beverage sector remains the largest consumer of CO2, particularly for carbonation and preservation purposes. The growing demand for carbonated soft drinks, beer, and other beverages continues to drive the demand for CO2 in this industry.

Sustainability Focus and Green CO2: There is an increasing emphasis on sustainability and reducing the carbon footprint in the CO2 production process. The adoption of green CO2, which is captured through natural processes like fermentation, is gaining momentum as companies strive to reduce their environmental impact.

Technological Advancements: The UK carbon dioxide market is benefiting from technological advancements in CO2 capture and storage. Innovations in capturing CO2 from industrial processes and its reuse in various applications are driving a more sustainable and efficient use of CO2.

Growing Use in Healthcare: In the healthcare sector, CO2 plays a vital role in anesthesia, medical devices, and medical gases. With the expansion of healthcare services, there is an increasing demand for high-purity CO2 in medical applications.

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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 United Kingdom carbon dioxide market is poised for steady growth throughout the forecast period. Between 2025 and 2034, the market is projected to grow at a CAGR of 1.5%, reaching an estimated volume of 840.5 KMT by 2034. This growth is expected to be driven by several factors:

Economic Recovery and Industrial Expansion: As the UK economy continues to recover from global disruptions, industrial activities are likely to pick up, increasing the demand for CO2 across various sectors, including manufacturing, food and beverage, and healthcare.

Technological Advancements in CO2 Production: Continuous innovations in the methods of CO2 production, capture, and storage are expected to increase production capacity and lower operational costs. This will improve the supply chain dynamics and support market growth.

Policy Support for Sustainable Practices: The UK government’s commitment to reducing greenhouse gas emissions and supporting green technologies could encourage the development of low-carbon or carbon-neutral CO2 production methods. This could benefit the CO2 market as businesses adapt to stricter environmental regulations.

Increased Demand for Industrial and Agricultural Applications: CO2’s role in industrial processes, as well as in the agricultural sector (for crop production and preservation), is expected to expand as new applications are discovered and adoption rates rise.

United Kingdom Carbon Dioxide Market Analysis

The United Kingdom’s carbon dioxide market is largely influenced by domestic production and imports. The UK has a robust infrastructure for CO2 production, with several key players operating in the market. The market is competitive, and many players focus on offering high-quality CO2 for specialized applications, such as food-grade CO2 for the beverage industry and medical-grade CO2 for healthcare.

From a regional perspective, CO2 production is concentrated in certain areas of the UK where industrial activities and manufacturing are concentrated. Companies are also exploring carbon capture and storage (CCS) technologies to reduce their environmental impact, which has become a key part of the market dynamics.

United Kingdom Carbon Dioxide Market Forecast

The carbon dioxide market in the United Kingdom is expected to grow at a moderate but consistent pace over the next decade. By 2034, the market is projected to reach a volume of approximately 840.5 KMT, representing a 1.5% CAGR from 2025 to 2034. This growth is underpinned by steady demand from key industries, including food and beverage, healthcare, agriculture, and manufacturing.

While the market may face challenges such as price fluctuations and regulatory changes, the long-term outlook remains positive, with the shift toward greener CO2 production methods and increasing demand from emerging applications providing significant growth opportunities.

Competitor Analysis: Key Players in the United Kingdom Carbon Dioxide Market

Ensus UK Limited: A leading producer of CO2 in the UK, Ensus UK focuses on producing CO2 from bioethanol production, contributing to green CO2 initiatives.

BioCarbonics Ltd.: Specializes in the capture and supply of CO2 for various industries, including food and beverage and agriculture.

Tata Chemicals Europe Limited: A major player in the global CO2 market, Tata Chemicals produces CO2 for a wide range of industrial applications, including beverage carbonation and oil recovery.

Yara International ASA: Known for its expertise in chemicals and fertilizers, Yara International supplies CO2 to various industrial applications in the UK.

BOC Limited (Linde): A prominent industrial gas company, BOC Limited supplies high-purity CO2 to various sectors, including healthcare and manufacturing.

Air Liquide UK Ltd: Part of the global Air Liquide Group, this company provides CO2 for industrial and healthcare applications in the UK.

Nippon Gases: A key player in the CO2 market, providing high-quality CO2 for a variety of applications.

Progases (UK) Ltd: Specializes in the supply of CO2 for various industries, including beverage carbonation and food preservation.

Others : These companies, along with others, are actively contributing to the growth of the UK’s carbon dioxide market, focusing on innovations in CO2 capture, production, and distribution.

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