The Europe carbon dioxide (CO2) market, valued at USD 451.8 million in 2025, is projected to reach USD 905.5 million by 2035, growing at a compound annual growth rate (CAGR) of 7.2%, according to Fact.MR analysis. Carbon dioxide, used in food and beverage processing, enhanced oil recovery, and industrial applications, is experiencing rising demand driven by sustainable practices and stringent EU emission regulations. The market benefits from advancements in carbon capture and storage (CCS) technologies, which align with Europe’s climate goals, particularly in key markets like Germany, France, and the Netherlands.

The increasing focus on sustainability, with the European Green Deal targeting carbon neutrality by 2050, has accelerated the adoption of CO2 recovery and utilization across industries. The food and beverage sector, which accounts for a significant share, relies heavily on CO2 for carbonation and preservation, while the healthcare and logistics sectors drive demand for medical-grade CO2 and dry ice. Despite challenges like volatile supply chains and high CCS costs, the market is poised for robust growth, supported by government incentives and innovations in circular carbon economies.

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Market Analysis

The Europe carbon dioxide market is experiencing strong growth due to increasing demand across diverse sectors and stringent environmental regulations. The food and beverage industry, particularly in Germany, Italy, and the U.K., drives significant consumption, utilizing CO2 for carbonation, packaging, and preservation, with processed food demand growing at 4% annually. The adoption of carbon capture and storage technologies is accelerating, driven by EU climate goals aiming for a 55% emissions reduction by 2030. Germany and the Netherlands lead in CCS deployment, with projects like Porthos capturing up to 800,000 tons of CO2 annually. The chemical sector is increasingly using CO2 as a feedstock for methanol and urea production, supporting sustainable manufacturing. However, volatile supply chains, linked to ammonia and ethanol production, and high costs for capture and purification infrastructure pose challenges. Companies are addressing these through investments in onsite CO2 recovery systems and partnerships to enhance supply chain resilience, ensuring sustained market expansion.

Segment Analysis

The Europe carbon dioxide market is segmented by production method, delivery mode, and end-use industry. Medium-speed shredders dominate production methods, holding the largest share due to their efficiency in processing waste for CO2 recovery, particularly in recycling facilities. Waste recycling plants lead delivery modes, driven by centralized processing in countries like Germany and Sweden, which support circular economy goals through advanced sorting and waste-to-energy systems. The food and beverage industry is the largest end user, accounting for over 40% of CO2 consumption, driven by carbonation and modified atmosphere packaging for products like soft drinks and meats. The healthcare sector is growing steadily, utilizing medical-grade CO2 for surgeries and diagnostics, while the chemical and oil and gas sectors leverage CO2 for sustainable production and enhanced oil recovery. This segmentation reflects the market’s versatility in addressing industrial and environmental needs across Europe.

Country-wise Insights

United States:
The U.S. is not a primary focus of the Europe CO2 market but participates through cross-border collaborations and technology transfers. The U.S. market, projected to grow at a 6.5% CAGR through 2035, benefits from partnerships with European firms like Air Liquide, supporting CO2 utilization in food processing and CCS development.

United Kingdom:
The U.K. market is expanding at an estimated 6.8% CAGR, driven by demand for CO2 in healthcare and cold chain logistics. Projects like the East Coast Cluster, aimed at carbon neutrality by 2050, and investments in dry ice for pharmaceutical transport fuel regional growth.

Key Players

• Air Liquide S.A.
• The Linde Group
• The Messer Group GmbH
• SOL Spa
• Strandmøllen
• ACAIL Gas
• AKER Carbon Capture
• Climeworks
• Northern Lights JV DA
• Eni S.p.A.

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Strategic Outlook and Industry Trends

The Europe carbon dioxide market is evolving with transformative trends reshaping its landscape. The integration of carbon capture and storage technologies is gaining momentum, with projects like Northern Lights in Norway and Porthos in the Netherlands setting benchmarks for cross-border CO2 storage. The shift toward circular carbon economies, particularly in Germany and France, is driving CO2 utilization in greenhouses and chemical synthesis, reducing emissions. The food and beverage sector continues to dominate, with innovations in onsite CO2 capture minimizing supply chain disruptions. The rise of dry ice in cold chain logistics, driven by pharmaceutical and food transport needs, is creating new opportunities. Challenges like regulatory fragmentation and limited storage infrastructure are being addressed through EU funding and standardized protocols. Companies investing in scalable CCS, sustainable CO2 applications, and regional partnerships are well-positioned to capitalize on Europe’s decarbonization goals.

Segmentation of Europe Carbon Dioxide Market

By Production Method:
• Slow Speed Shredders
• Medium Speed Shredders
• High-Speed Shredders

By Delivery Mode:
• Waste Recycling Plants
• Plastic Production Plants
• Paper Processing Plants
• Metal Processing Plants
• Others

By End-use Industry:
• Metal Manufacturing & Fabrication
• Food & Beverages
• Pulp & Paper
• Oil & Gas
• Healthcare
• Chemicals
• Other Industrial Uses

By Countries:
• Germany
• Italy
• France
• Spain
• U.K.
• Russia
• BENELUX
• Rest of Europe

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