United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market size reached a volume of 725.80 KMT in 2024. Driven by the increasing industrial demand for CO2 across sectors such as food and beverage, healthcare, and manufacturing, the market is expected to grow at a compound annual growth rate ( CAGR) of 1.50% from 2025 to 2034, reaching an estimated volume of 842.32 KMT by 2034.

Carbon dioxide is a colorless, odorless gas that plays a vital role in various sectors, including food and beverages, healthcare, oil and gas, and manufacturing. As one of the most widely used industrial gases, CO2 is integral to numerous applications, ranging from carbonating beverages to maintaining the preservation of food, from enhancing oil recovery to enabling the production of specialty chemicals. The versatility of CO2, coupled with growing industrial activity and an increasing focus on sustainability and environmental considerations, is driving the expansion of the United Kingdom carbon dioxide market.

The United Kingdom carbon dioxide market is further supported by the country’s commitment to reducing carbon emissions and increasing the adoption of carbon capture and storage (CCS) technologies. These factors, alongside the growing use of CO2 in renewable energy applications and the demand for high-quality CO2 in food-grade quality, are expected to shape the market's growth trajectory over the forecast period.

Key Drivers of Market Growth

• Rising Demand from the Food and Beverage Industry: The food and beverage sector remains a significant driver of United Kingdom carbon dioxide market. Carbon dioxide is widely used in the carbonation of beverages, including soft drinks, beer, and sparkling water. Additionally, CO2 is critical for the preservation and transportation of food products. As consumer preferences shift towards convenience foods and beverages with extended shelf lives, the demand for CO2 as a refrigerant and preservative is increasing.

  The use of CO2 in modified atmosphere packaging (MAP) allows for the preservation of perishable items by altering the gas composition in packaging, extending the shelf life of fresh produce, meat, and baked goods. This trend towards longer-lasting products in the food industry has significantly boosted the demand for CO2 in packaging applications, ensuring the sustainability and freshness of goods throughout the supply chain.

• Expanding Applications in Healthcare: The healthcare industry has also become an important end-user of carbon dioxide, particularly for medical and therapeutic purposes. CO2 is used in medical procedures such as insufflation during minimally invasive surgeries, where CO2 is injected into body cavities to expand them for better visualization. Additionally, CO2 is utilized in cryotherapy and as a carrier gas in various analytical instruments.

  The United Kingdom's advanced healthcare infrastructure and growing medical tourism have contributed to a sustained demand for CO2 in these applications. The rise in minimally invasive surgeries and medical procedures that require controlled levels of CO2 is further propelling the demand for this industrial gas.

• Increased Focus on Carbon Capture and Storage (CCS): As part of the United Kingdom's broader effort to combat climate change, there has been a growing emphasis on carbon capture and storage (CCS) technologies. CCS involves capturing CO2 emissions from industrial sources or directly from the atmosphere and storing it underground to prevent its release into the atmosphere. The UK's commitment to achieving net-zero carbon emissions by 2050 has driven investments in CCS projects and technologies, further bolstering the demand for CO2 for storage and reuse in industrial processes.

  The government’s initiatives to fund and develop carbon capture infrastructure are expected to play a pivotal role in the United Kingdom carbon dioxide market growth. Furthermore, the establishment of CCS hubs in key industrial areas is expected to create a more sustainable cycle of CO2 capture, transport, and storage, ensuring that United Kingdom carbon dioxide market  remains a vital component in the broader transition to a low-carbon economy.

• Oil and Gas Industry’s Role in CO2 Enhanced Oil Recovery (EOR): The oil and gas industry is another significant sector driving the demand for CO2 in the United Kingdom. CO2 is used in enhanced oil recovery (EOR) techniques, where CO2 is injected into oil reservoirs to increase the extraction of crude oil. This method improves the recovery rate of mature fields and allows for the continued operation of oil production sites that would otherwise be considered economically unviable.

  As global demand for energy increases and the oil and gas industry looks to optimize production from existing fields, the demand for CO2 for EOR purposes is expected to remain strong. Moreover, the United Kingdom's North Sea oil fields are prime candidates for the deployment of CO2-based EOR techniques, ensuring that CO2 continues to be a critical part of the UK’s energy strategy.

• Sustainability and Environmental Considerations: The United Kingdom has made significant strides towards environmental sustainability, with government policies aimed at reducing greenhouse gas emissions and encouraging the adoption of greener technologies. As the country moves toward achieving its climate goals, CO2 is becoming an increasingly important resource in several industries, such as renewable energy and sustainable manufacturing processes.

  For example, United Kingdom carbon dioxide market is used in the production of algae-based biofuels, which are considered a cleaner alternative to traditional fossil fuels. Additionally, CO2 can be employed in industrial processes to reduce energy consumption and emissions, helping manufacturers comply with stringent environmental regulations.

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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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