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

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

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The United Kingdom's carbon dioxide (CO2) market is a vital industry, supporting a wide range of sectors from food and beverage to industrial applications. In 2024, the market attained a volume of 725.8 KMT (kilotons) and is expected to witness steady growth with a projected compound annual growth rate (CAGR) of 1.5% during the period from 2025 to 2034. By 2034, the market is estimated to reach a volume of 840.5 KMT. The increase in demand for CO2 can be attributed to various industries relying on the gas for industrial, medical, and environmental applications.

United Kingdom Carbon Dioxide Market Size

The size of the UK carbon dioxide market reached 725.8 KMT in 2024, with notable demand coming from sectors like food and beverage, healthcare, manufacturing, and chemicals. As the UK continues to transition towards a greener economy and becomes more focused on environmental regulations, the carbon dioxide market is also adjusting to meet the demands of these new policies. CO2 is used across many industries for purposes ranging from carbonated beverages to refrigeration and oil recovery.

With a steady increase in demand for CO2, the market size is expected to grow significantly, reaching 840.5 KMT by 2034. This growth is largely attributed to evolving industrial practices, sustainability efforts, and new technologies that increase CO2 production efficiency.

United Kingdom Carbon Dioxide Market Trends

Several key trends are shaping the development of the UK carbon dioxide market:

Sustainable Production Practices: As the UK works toward its carbon neutrality goals by 2050, there is a growing emphasis on sustainable CO2 production. Carbon capture and storage (CCS) technologies are gaining momentum, and renewable CO2 sources are becoming more desirable.

Food and Beverage Industry Demand: The food and beverage industry continues to be the largest consumer of CO2, especially for carbonation in beverages and food preservation. Modified atmosphere packaging (MAP) in food processing also boosts demand.

Emerging Industrial Applications: CO2 is used for a wide variety of industrial applications, such as in enhanced oil recovery, steel production, and chemical manufacturing. As industrial sectors evolve, new uses for CO2 continue to emerge, fueling market growth.

Environmental Regulations and Policy Support: The UK government’s regulatory framework is steering industries toward environmentally friendly production processes. Policies encouraging carbon capture and green CO2 production contribute to market expansion.

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United Kingdom Carbon Dioxide Market Segmentation

Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU

Production:
Biological
Combustion

End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others

United Kingdom Carbon Dioxide Market Growth

The United Kingdom carbon dioxide market is expected to experience steady growth, with a CAGR of 1.5% from 2025 to 2034. The factors driving this growth include:

Rising Demand Across Multiple Sectors: The food and beverage industry remains a significant driver, but industrial sectors, including chemicals and healthcare, also contribute significantly to CO2 demand. Furthermore, the increasing use of CO2 in enhanced oil recovery (EOR) and cooling systems is contributing to sustained growth.

Technological Advancements: Technological improvements in CO2 production, such as the development of more efficient and environmentally friendly capture techniques, help meet growing demand while reducing emissions.

Government Initiatives: The UK government's environmental initiatives, including the emphasis on decarbonization and CO2 emissions reduction, are pushing industries toward adopting CO2 capture and recycling technologies.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is diverse, with several industries depending on CO2 for various applications. The food and beverage sector is the largest market segment, utilizing CO2 for carbonation, food preservation, and packaging. Additionally, the medical sector relies on CO2 for respiratory treatments, while manufacturing industries use CO2 in cooling systems and chemical production.

On the production side, many companies in the UK are moving toward sustainable methods, utilizing carbon capture technologies and focusing on producing CO2 from renewable sources. The market is also seeing growth due to technological advancements in CO2 capture and distribution systems.

Despite these advancements, challenges remain. The carbon intensity of CO2 production, combined with rising energy costs, continues to put pressure on the industry. However, the market's focus on sustainability is likely to mitigate these challenges in the coming years.

United Kingdom Carbon Dioxide Market Forecast

The forecast for the UK carbon dioxide market is positive, with the market expected to reach 840.5 KMT by 2034. A consistent CAGR of 1.5% between 2025 and 2034 reflects strong demand from multiple sectors, technological innovations, and policy-driven sustainability efforts.

The continued reliance on CO2 in industries like food and beverage, healthcare, and manufacturing, coupled with new applications in emerging sectors like energy and waste management, is expected to support the growth of the market. Additionally, the push for low-carbon technologies will further bolster the adoption of sustainable CO2 production methods, contributing to long-term market stability.

Competitor Analysis

The UK carbon dioxide market is home to several key players, both multinational and regional, providing CO2 across industries. Some of the major companies driving innovation and demand in the market include:

Ensus UK Limited: A significant player in the UK, Ensus produces high-purity CO2 through fermentation processes, focusing on sustainability and providing CO2 for industrial, food, and beverage sectors.

BioCarbonics Ltd.: BioCarbonics is another key player committed to providing CO2 solutions in the UK. The company is known for its sustainable practices and its focus on industrial and food preservation applications.

Tata Chemicals Europe Limited: Tata Chemicals is a global leader in CO2 production, with a strong presence in the UK market. The company provides CO2 for a wide range of applications, including food and beverage, chemical manufacturing, and medical sectors.

Yara International ASA: Yara is known for producing CO2 used in industrial applications, particularly in agriculture and chemical production. The company is a leader in sustainable CO2 production, with a focus on reducing emissions.

Air Products PLC: Air Products is a major player in the UK market, producing CO2 for industrial applications, food and beverage sectors, and healthcare. The company is committed to providing sustainable and efficient CO2 solutions.

BOC Limited (Linde): BOC, part of the global Linde Group, is one of the leading providers of industrial gases, including CO2, in the UK. BOC supplies CO2 to various industries, including food and beverage, healthcare, and manufacturing.

Air Liquide UK Ltd.: Air Liquide is a major provider of industrial gases, including CO2. The company has a strong foothold in the UK market and is actively involved in reducing the environmental impact of CO2 production.

Nippon Gases: Nippon Gases offers CO2 solutions for multiple industries in the UK, including the chemical and food sectors. The company is focused on providing high-quality CO2 solutions with an emphasis on sustainability.

Progases (UK) Ltd.: Progases is an important supplier of CO2 in the UK, focusing on the beverage carbonation, food preservation, and industrial applications. Their innovative solutions help cater to the growing demand for CO2 in the region.

Others: In addition to these key players, smaller companies are also contributing to the UK's CO2 market, particularly those that focus on niche applications and sustainable CO2 solutions.

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