United Kingdom Carbon Dioxide Market Trends, Growth, and Opportunities (2025-2034)

The United Kingdom carbon dioxide market size attained a volume of 725.8 KMT in 2024. The market is projected to grow at a CAGR of 1.5% from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. This growth is attributed to the increasing demand for carbon dioxide in diverse industries such as food and beverages, medical applications, and metal fabrication. Advancements in carbon capture technologies, alongside regulatory changes and a shift toward sustainable production methods, are shaping the future of the United Kingdom carbon dioxide market.
In this blog post, we’ll explore the key segments of the United Kingdom carbon dioxide market, examine production dynamics, and highlight leading players driving growth in this sector.
Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market
Ammonia
Ammonia production is one of the primary sources of carbon dioxide in the United Kingdom. CO₂ is a by-product of ammonia manufacturing, essential for industries requiring food-grade carbon dioxide. Key companies such as Yara International ASA and Tata Chemicals Europe Limited have developed advanced CO₂ recovery systems, ensuring a sustainable supply while meeting the market's increasing demand.
Ethyl Alcohol
Ethyl alcohol fermentation is another significant source of CO₂ in the United Kingdom carbon dioxide market. The growth of the food and beverage sector has boosted demand for bio-based CO₂, which is a cleaner alternative to fossil-fuel-based CO₂. BioCarbonics Ltd. has been a key player in this segment, utilizing fermentation processes to provide sustainable CO₂ solutions.
Substitute Natural Gas (SNG)
SNG processes contribute to the carbon dioxide supply in the United Kingdom, particularly for industrial uses. Companies like BOC Limited (Linde) are working on enhancing CO₂ recovery techniques in SNG production, addressing both market demand and environmental sustainability concerns.
Market Segmentation by Production Methods in the United Kingdom Carbon Dioxide Market
Biological Production
Biological methods such as fermentation and anaerobic digestion are gaining traction in the United Kingdom carbon dioxide market. These processes are eco-friendly and produce CO₂ with minimal environmental impact. Ensus UK Limited, with its bioethanol production, is a notable player in biological CO₂ generation, contributing significantly to sustainable CO₂ production.
Combustion Production
Combustion remains a major method of CO₂ production in the United Kingdom. However, due to growing environmental concerns, there is an increasing focus on improving carbon capture, utilization, and storage (CCUS) technologies. Leading companies such as Air Liquide UK Ltd and Air Products PLC are investing in CCUS technologies to reduce CO₂ emissions from combustion processes, aligning with environmental regulations.
Key Market Segmentation by End Use in the United Kingdom Carbon Dioxide Market
Food and Beverages
The food and beverage sector is the largest consumer of CO₂ in the United Kingdom. Carbon dioxide is widely used in carbonated beverages, food preservation, and packaging. As the demand for carbonated drinks and packaged food grows, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on delivering sustainable and high-quality CO₂ solutions for the food and beverage industry.
Oil and Gas
In the oil and gas sector, carbon dioxide plays a critical role in enhanced oil recovery (EOR) processes. While the United Kingdom transitions to renewable energy sources, CO₂ demand in this segment is expected to decrease. However, companies like Air Products PLC continue to supply CO₂ for EOR applications, ensuring a reliable supply for the sector’s needs.
Medical Applications
The medical sector requires CO₂ for various applications, including surgeries, respiratory therapies, and diagnostic processes. Companies like Nippon Gases and Progases (UK) Ltd are leaders in supplying high-purity CO₂ for medical purposes, ensuring compliance with stringent safety and quality standards.
Metal Fabrication
CO₂ is extensively used in metal fabrication, particularly in welding and cutting processes. The expansion of manufacturing industries in the United Kingdom, especially in automotive and construction, is expected to increase the demand for CO₂ in metal fabrication. Tata Chemicals Europe Limited and Air Liquide UK Ltd are major suppliers of CO₂ to meet the needs of these growing sectors.
Other Applications
Other applications of CO₂ in the United Kingdom include water treatment, fire suppression, and chemical production. These diverse uses continue to drive demand for carbon dioxide across various industries, contributing to steady growth in the United Kingdom carbon dioxide market.
Market Dynamics of the United Kingdom Carbon Dioxide Market
SWOT Analysis
Strengths
- Established infrastructure for CO₂ production and recovery.
- Diverse end-use applications, ensuring consistent demand.
- Strong industrial base supporting market growth.
Weaknesses
- Heavy reliance on ammonia and ethyl alcohol as primary sources.
- Environmental concerns surrounding combustion-based CO₂ production methods.
Opportunities
- Advancements in carbon capture and utilization technologies.
- Growing interest in bio-based CO₂ production methods.
- Increasing demand for sustainable and environmentally friendly products.
Threats
- Stringent environmental regulations on emissions.
- Potential disruptions in the CO₂ supply chain due to geopolitical or economic challenges.
- Competition from alternative gases and substitutes.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital investment and regulatory challenges make it difficult for new entrants to disrupt the market.
- Bargaining Power of Suppliers: A limited number of CO₂ sources gives suppliers moderate power.
- Bargaining Power of Buyers: Buyers have some flexibility in choosing suppliers, but they prioritize quality and reliability.
- Threat of Substitutes: The availability of alternative gases for specific applications presents a moderate threat.
- Industry Rivalry: The market is characterized by strong competition among established players, encouraging innovation and cost reduction.
Regional Insights of the United Kingdom Carbon Dioxide Market
The demand for carbon dioxide in the United Kingdom is concentrated in urban centers like London, Birmingham, and Manchester, where industries and manufacturing hubs are concentrated. However, demand is also growing in rural areas as industries expand beyond urban regions. To optimize CO₂ distribution, companies like Air Liquide UK Ltd and BOC Limited (Linde) are focusing on improving supply chain efficiency to meet regional demand.
Competitive Landscape of the United Kingdom Carbon Dioxide Market
The United Kingdom carbon dioxide market is highly competitive, with several key players focused on innovation and sustainability. Leading companies include:
- Ensus UK Limited: Known for its bioethanol production, contributing to biological CO₂ generation.
- BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions, particularly for the food and beverage industry.
- Tata Chemicals Europe Limited: A leading supplier of industrial-grade CO₂ for metal fabrication and other industrial uses.
- Yara International ASA: Operates ammonia-based CO₂ production systems in the UK, ensuring a steady CO₂ supply.
- Air Products PLC: Invests heavily in carbon capture and storage technologies to provide sustainable CO₂.
- BOC Limited (Linde): Supplies CO₂ for diverse industries, with a focus on quality and reliability.
- Air Liquide UK Ltd: Focuses on sustainable CO₂ production and distribution.
- Nippon Gases: Supplies high-quality CO₂ for medical applications.
- Progases (UK) Ltd: Provides CO₂ solutions tailored to various industries.
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