United Kingdom Carbon Dioxide Market Trends & Share2025-2034

The United Kingdom’s carbon dioxide (CO2) market is undergoing significant changes, driven by both environmental concerns and technological innovations in industrial applications. As of 2024, the market for carbon dioxide in the UK reached a volume of 725.8 kilotons (KMT), and is expected to see a steady growth rate over the next decade. By 2034, the market is projected to reach a volume of 840.5 KMT, expanding at a compound annual growth rate (CAGR) of 1.5% between 2025 and 2034. This article dives into the current state of the UK carbon dioxide market, including its size, trends, growth potential, and the competitive landscape.

United Kingdom Carbon Dioxide Market Size

The United Kingdom carbon dioxide market in 2024 stood at 725.8 KMT, reflecting a strong demand for CO2 across various industries, particularly in food and beverage production, industrial applications, and the healthcare sector. The market’s size is determined by factors such as the growing demand for CO2 in carbonated drinks, medical use in surgeries and diagnostics, and its role in industrial processes such as welding, enhanced oil recovery, and as a refrigerant.

The carbon dioxide market in the UK has been influenced by economic and regulatory factors, including the implementation of stricter environmental laws, which drive companies toward more sustainable practices. The market’s growth trajectory will be influenced by the increasing focus on sustainability and the gradual shift towards low-carbon technologies.

United Kingdom Carbon Dioxide Market Trends

Key trends shaping the UK carbon dioxide market include:

Sustainability and Carbon Capture Technologies: The UK is making significant strides in reducing its carbon footprint, with innovations in carbon capture, utilization, and storage (CCUS) technologies. CO2 emissions reduction targets are pushing industries to implement CO2 capture methods, which will likely have a long-term effect on the market’s dynamics.

Increased Demand in Food and Beverage Industry: The demand for CO2 in the food and beverage sector, particularly in carbonated soft drinks and food preservation, continues to rise. The shift towards packaged food products and convenience items also fuels demand for CO2 in packaging and refrigeration.

Healthcare Sector Growth: CO2 is increasingly used in medical and healthcare applications such as insufflation for minimally invasive surgeries and as a refrigerant in cryotherapy. The growing healthcare needs of the UK population, combined with advancements in medical technologies, will drive continued demand in this sector.

Industrial Use Expansion: The UK’s industrial sector, including oil and gas, manufacturing, and metal processing, relies heavily on CO2 in various applications. Enhanced oil recovery, for example, continues to be a significant factor in CO2 consumption.

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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 market is projected to grow at a modest CAGR of 1.5% from 2025 to 2034, with total volumes reaching 840.5 KMT by 2034. This growth is underpinned by several factors:

Technological Advancements: The development of more efficient CO2 capture and delivery systems, as well as innovations in CO2-based applications (such as in clean energy), will boost market demand.

Government Regulations and Policies: The UK’s aggressive carbon reduction goals and policies aimed at improving environmental sustainability are expected to encourage industries to explore alternative CO2 sources and capture methods, thereby supporting market growth.

Infrastructure Developments: The expansion of CO2 infrastructure to better transport and store the gas, especially in emerging industries such as the green hydrogen sector, will likely propel growth across various market segments.

United Kingdom Carbon Dioxide Market Analysis

The carbon dioxide market in the UK is driven by diverse industries with varying demand profiles. The food and beverage sector is the largest consumer of CO2, accounting for a significant share of the market. The healthcare sector and industrial applications, such as oil and gas and manufacturing, also contribute heavily to market consumption.

There are regional disparities in the demand for CO2, with larger urban areas showing higher levels of industrialization and, therefore, higher consumption. The shift toward more eco-friendly and efficient production processes is expected to increase demand for CO2 as a byproduct of emerging green technologies.

Moreover, the UK government’s policies surrounding environmental sustainability, including carbon tax incentives and CO2 reduction commitments, have prompted businesses to adopt greener practices, thus indirectly supporting the growth of the CO2 market.

United Kingdom Carbon Dioxide Market Forecast

Looking ahead to the period between 2025 and 2034, the carbon dioxide market in the United Kingdom is expected to see steady growth. The key drivers will be the rising demand for CO2 in food and beverage production, healthcare applications, and industrial uses, combined with technological advances and government support for sustainability.

The forecasted market size of 840.5 KMT by 2034 represents an opportunity for both existing players and new entrants to innovate and expand in the space. As industries in the UK move toward greater carbon neutrality, CO2 demand will likely continue to grow, albeit at a more moderate pace than in previous years.

Competitor Analysis: Key Players in the UK Carbon Dioxide Market

Several prominent players dominate the UK carbon dioxide market, each offering a range of services and products catering to different industries. The main competitors in the market include:

Ensus UK Limited: Known for its leading position in CO2 production from bioethanol plants, Ensus UK has been a key player in the UK market by providing a steady supply of CO2 for various industrial uses, particularly in food production and beverage carbonation.

Air Products PLC: Air Products is a global leader in industrial gases, offering CO2 solutions to a wide range of industries including healthcare, manufacturing, and energy. Their commitment to sustainable practices and technological innovation makes them a formidable competitor in the UK market.

BOC Limited (Linde): BOC, a member of the Linde Group, is one of the largest suppliers of industrial gases in the UK, including CO2. Their extensive distribution network and varied applications, including in healthcare, industrial production, and oil and gas, make them a key player in the market.

Air Liquide UK Ltd: Air Liquide is a major global supplier of gases, including CO2, for use in various sectors such as healthcare, food and beverage, and industrial applications. Their focus on green technologies and sustainability is a key element of their strategy in the UK market.

Nippon Gases: Nippon Gases has established itself as a strong competitor in the UK CO2 market, providing high-quality gases for a variety of industries. Their strategic partnerships and commitment to reducing environmental impact have helped them capture a significant share of the market.

Progases (UK) Ltd: Specializing in the supply of industrial gases including CO2, Progases UK serves various sectors, including food processing and manufacturing. Their flexibility and customer-centric approach make them a key competitor in the market.

Others: Other smaller and regional players also contribute to the UK carbon dioxide market. These include independent suppliers and niche providers who serve specific regional markets or particular industries.

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