United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size was valued at approximately 725.80 KMT in 2024. Driven by the increasing demand across various industries, including food and beverage, healthcare, and industrial applications, the market is projected to grow at a robust CAGR of 1.50% between 2025 and 2034, reaching a value of 842.32 KMT by 2034.

Carbon dioxide (CO2) is an essential gas with a wide range of applications, including carbonating soft drinks, serving as a refrigerant in cryogenic cooling, enhancing oil recovery, and playing a vital role in numerous chemical processes. As environmental awareness continues to grow and the need for sustainable solutions becomes more pressing, the carbon dioxide market in the UK is set to evolve, shaped by technological advancements and an increasing focus on carbon capture and utilization (CCU).

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Key Drivers of Market Growth

Increasing Demand in Food and Beverage Industry: The UK food and beverage industry is one of the primary drivers of carbon dioxide consumption. CO2 is widely used in the carbonation of soft drinks, sparkling waters, and alcoholic beverages, such as beer and carbonated wines. As consumer preferences evolve and demand for new, innovative beverages rises, the need for carbon dioxide in beverage production is expected to continue growing. Furthermore, the increasing popularity of healthier alternatives, such as sugar-free sodas and low-calorie beverages, also stimulates demand for CO2, as carbonation is integral to the sensory experience of these products.

The food industry also relies on CO2 for refrigeration purposes, particularly in the storage and transportation of perishable goods. This trend, combined with the rapid expansion of the food and beverage sector in the UK, is expected to fuel the market growth of carbon dioxide in the coming years.

Growing Demand for Carbon Dioxide in Healthcare Applications: The healthcare sector is another significant contributor to the UK carbon dioxide market. Carbon dioxide is used in various medical applications, including insufflation during minimally invasive surgeries, such as laparoscopic procedures. Additionally, CO2 is used in the production of certain medical devices and as a propellant in pharmaceutical aerosol products.

With the UK healthcare sector witnessing increasing demand for advanced medical treatments and minimally invasive procedures, the requirement for carbon dioxide in these applications is projected to rise. As medical technologies continue to evolve and healthcare becomes more focused on patient safety and efficiency, the market for CO2 is expected to benefit from its growing utility in healthcare settings.

Industrial and Chemical Applications: Beyond food, beverage, and healthcare, carbon dioxide plays a significant role in a wide range of industrial processes. It is used as a refrigerant in cryogenic cooling systems, particularly in industries such as food processing, metal manufacturing, and pharmaceuticals. The growth of these sectors, alongside the demand for energy-efficient technologies, is contributing to the increasing consumption of carbon dioxide.

Furthermore, CO2 is an important component in various chemical processes, including the production of urea, methanol, and other chemicals. As the UK continues to focus on fostering a sustainable and resilient industrial sector, the demand for carbon dioxide in chemical manufacturing and related industries is expected to increase.

Focus on Carbon Capture and Utilization: The growing emphasis on environmental sustainability has led to increased attention on carbon capture and utilization (CCU) technologies. CCU involves capturing CO2 emissions from industrial processes and converting them into useful products, such as biofuels, chemicals, and materials. In the UK, where climate change policies are becoming increasingly stringent, carbon dioxide emissions are a major area of focus for the government and businesses alike.

As part of the nation’s strategy to reduce greenhouse gas emissions and achieve net-zero emissions by 2050, there is significant investment in carbon capture technologies, which may alter the trajectory of the CO2 market. Carbon dioxide captured from industrial sources can be utilized in various applications, offering both environmental and economic benefits. This increasing focus on CCU technologies is likely to create new avenues for growth in the market.

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 promising outlook for the UK carbon dioxide market, there are several challenges that need to be addressed. One of the main hurdles is the dependency on natural gas production for CO2 supply. As the demand for CO2 increases across industries, the strain on traditional production methods may lead to supply shortages or price fluctuations. Additionally, CO2 production contributes to environmental concerns, particularly when generated from non-renewable sources.

Moreover, the transportation and storage of CO2 pose logistical challenges, particularly when it comes to ensuring that carbon dioxide is delivered safely and efficiently to industries that rely on it. The growing demand for CO2 in remote areas may require significant infrastructure investments to meet market needs.

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