United Kingdom Carbon Dioxide Market Size, Share & Trends 2025-2034

The United Kingdom carbon dioxide market, while facing challenges in reducing its carbon footprint, continues to expand due to rising industrial demand and the increasing need for carbon dioxide in various industries.

United Kingdom Carbon Dioxide Market Size, Share & Trends 2025-2034

The United Kingdom carbon dioxide market is undergoing a significant transformation, driven by growing awareness of the environmental impact of carbon emissions and the evolving policies surrounding carbon capture and utilization. In 2024, the market attained a volume of 725.8 KMT, and it is projected to witness a steady growth rate of 1.5% CAGR from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. This steady growth is largely attributed to the increasing demand for carbon dioxide in various sectors, including food and beverage, chemicals, healthcare, and more.

In this article, we will delve into the current state and future outlook of the United Kingdom carbon dioxide market, examining key factors such as market share, trends, dynamics, opportunities, and challenges. Furthermore, we will explore the competitive landscape that shapes the market’s evolution.

United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market, while facing challenges in reducing its carbon footprint, continues to expand due to rising industrial demand and the increasing need for carbon dioxide in various industries. As of 2024, the market has reached 725.8 KMT, representing a strong base for future growth. The market is expected to experience moderate but consistent growth at a compound annual growth rate (CAGR) of 1.5% during the period 2025-2034. By 2034, the market volume is projected to reach 840.5 KMT.

Factors Driving Market Growth

Several key factors contribute to the positive outlook of the United Kingdom carbon dioxide market:

Demand from Food & Beverage Sector: The food and beverage industry remains a major consumer of carbon dioxide for carbonation, preservation, and packaging processes. This continues to fuel demand in the sector.

Healthcare Applications: Carbon dioxide is widely used in medical applications, including in respiratory treatments and medical imaging procedures. As healthcare technologies advance, the demand for CO2 is expected to grow.

Industrial Use: Carbon dioxide plays a pivotal role in industries such as oil recovery, chemicals, and steel production. As these sectors continue to evolve and grow, so too will the demand for carbon dioxide.

Environmental Regulations and Carbon Capture Technologies: The UK government's policies aimed at reducing emissions and promoting carbon capture technologies are likely to play a role in shaping the market over the next decade. CO2 capture technologies could make the market more viable and attractive for industrial use.

Rising Focus on Sustainability: As industries and consumers alike become more focused on sustainability, the demand for innovative solutions that incorporate CO2 for other uses, such as in energy generation or greenhouses, is on the rise.

United Kingdom Carbon Dioxide Market Share & Trends

The market share for carbon dioxide in the UK is predominantly held by a few major players who dominate the supply and distribution of CO2 across various sectors. The market is highly concentrated in specific industries that utilize carbon dioxide for different applications. Let’s break down the key market segments and their trends:

Market Segmentation

Food and Beverage Industry: The largest share of carbon dioxide consumption is from the food and beverage sector. Carbon dioxide is used primarily for carbonating beverages, refrigerating food products, and preserving perishables. As the demand for carbonated drinks continues, this sector is expected to retain its dominant position.

Oil & Gas Industry: CO2 is utilized in enhanced oil recovery processes, where it is injected into oil wells to increase extraction efficiency. The UK's oil and gas industry is a significant contributor to CO2 demand, although alternative energy solutions are gradually affecting growth.

Healthcare: The use of CO2 in medical procedures, particularly in surgeries, respiratory treatments, and medical imaging, is expanding. A rise in medical conditions such as respiratory diseases contributes to this growth.

Chemical Manufacturing: Carbon dioxide is used in the production of chemicals such as urea, which is essential in fertilizers, plastics, and other industrial products. As chemical industries expand and evolve, demand for CO2 in chemical manufacturing continues to rise.

Agriculture: Carbon dioxide is used to enhance plant growth in controlled environments like greenhouses. As the agricultural sector looks for efficient ways to produce food, the use of CO2 in agriculture is set to increase.

Market Trends

The following trends are expected to drive the growth of the United Kingdom carbon dioxide market:

Carbon Capture and Storage (CCS): With the increasing focus on reducing carbon emissions, CCS technologies are gaining traction. The UK has set ambitious goals to reduce carbon emissions, and CCS could be a significant contributor to the market.

Carbon Dioxide for Energy Generation: The idea of utilizing CO2 in energy generation technologies, such as in the production of synthetic fuels, is emerging as a promising trend.

Increasing Use in Carbonated Beverages: Despite the growing demand for healthier drink alternatives, carbonated beverages continue to remain a staple, thus ensuring the continued high demand for CO2.

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United Kingdom Carbon Dioxide Market Dynamics & Trends

Drivers of Market Growth

Environmental Regulations and Government Support: The United Kingdom government’s commitment to achieving net-zero emissions by 2050 has influenced industries to invest in carbon capture technologies. This policy is likely to drive the market, especially in sectors looking to reduce their carbon emissions.

Technological Advancements: Innovations in CO2 capture, storage, and utilization (CCU) technologies continue to evolve. These advancements make carbon dioxide more versatile, facilitating its use in industries like agriculture, energy, and chemical manufacturing.

Increased Demand from the Food & Beverage Sector: As consumer preferences shift toward more processed and packaged food products, the food and beverage industry’s consumption of carbon dioxide continues to grow, driving overall market expansion.

Industrial and Chemical Sectors: Growth in industries such as steel manufacturing, oil recovery, and chemicals directly contributes to the demand for CO2. Industrial operations often rely on CO2 for different applications like controlling pH levels or serving as a refrigerant.

Challenges Facing the Market

Environmental Concerns: As the CO2 market grows, concerns regarding its environmental impact persist. Even though CO2 is a necessary byproduct in many industries, the market faces the challenge of reducing its carbon footprint and preventing environmental damage.

Regulatory Pressures: Tightening regulations surrounding carbon emissions and environmental protection laws may limit market growth. The need for compliance with increasingly stringent regulations could increase operational costs for producers.

Volatility in Carbon Dioxide Supply: Market fluctuations, such as raw material shortages, production challenges, and transportation issues, can disrupt the carbon dioxide supply chain, potentially affecting market stability.

Competition from Alternative Technologies: Emerging alternative technologies, such as bio-based CO2 capture methods, could impact the carbon dioxide industry. These technologies, if they gain commercial viability, could shift demand away from traditional CO2 production.

United Kingdom Carbon Dioxide Market Opportunities and Challenges

Opportunities

Carbon Utilization Technologies: As the world focuses on carbon reduction and CO2 capture, innovative carbon utilization technologies are an opportunity for market players to explore. These technologies could help generate economic value from carbon dioxide, enhancing sustainability efforts.

Renewable Energy Solutions: The renewable energy market offers considerable opportunities for the use of CO2 in the production of synthetic fuels, a form of CO2 recycling that could replace fossil fuels.

Expanding Applications in Agriculture: The agriculture sector offers significant growth opportunities, especially with CO2's use in controlled-environment agriculture and greenhouse systems.

Increasing Healthcare Demand: With healthcare applications growing, CO2 demand for medical purposes, such as in surgical procedures, anesthesia, and diagnostic imaging, will likely increase over the next decade.

Challenges

Regulatory Compliance: The UK’s increasing regulatory framework for environmental sustainability, including the carbon tax and emission reduction goals, presents a challenge to industries reliant on CO2. Adapting to these changes could require significant investments in cleaner technologies.

Cost of Production: The cost of producing and storing CO2 can be high, particularly in industries that are under pressure to reduce emissions. Smaller producers may struggle with such costs, limiting their ability to compete.

Environmental Impact of CO2 Production: Despite efforts to mitigate the environmental effects of CO2 production, concerns about its role in climate change persist. This may lead to calls for stricter controls or alternative methods of CO2 generation.

Competitor Analysis 

The UK carbon dioxide market is competitive, with several large players operating in the sector. Key market leaders include companies that supply CO2 to various industries, from food and beverage to chemical manufacturing and oil production. The competitive landscape is shaped by factors such as technological innovation, cost efficiency, regulatory compliance, and geographical presence.

BOC Limited (Linde): A subsidiary of Linde Group, BOC is a major supplier of industrial gases, offering solutions for healthcare, manufacturing, food, and energy sectors in the UK and Ireland.

Air Liquide UK Ltd: Part of the global Air Liquide group, specializing in providing gases, technologies, and services for industries like healthcare, chemicals, and energy.

Nippon Gases: A global supplier of industrial gases, focusing on products for sectors like manufacturing, energy, and healthcare, with a strong presence in Europe and other regions.

Progases (UK) Ltd: A UK-based company specializing in industrial and specialty gases for various industries, including healthcare, food and beverage, and manufacturing.

Others: Other players in the industrial gas market include regional suppliers and smaller companies serving specific sectors or geographic areas.

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