United Kingdom Carbon Dioxide Market: Forecast, Growth, and Trends 2025-2034

The United Kingdom carbon dioxide market plays a significant role in various industrial sectors such as food and beverage, healthcare, chemical manufacturing, and oil & gas. In 2024, the market reached a volume of 725.80 KMT and is projected to witness a CAGR of 1.50% from 2025 to 2034. By 2034, the volume is expected to grow to 842.32 KMT. The demand for carbon dioxide (CO2) continues to rise, driven by its crucial applications in carbonation, medical treatments, and industrial processes. This article explores the UK carbon dioxide market, focusing on its overview, size and share, market dynamics and trends, growth prospects, opportunities and challenges, and competitive landscape.

Overview of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market involves the production, distribution, and consumption of CO2 across various industries. CO2 is a versatile gas with wide applications in sectors such as food and beverage, healthcare, oil and gas, chemical production, and fire suppression. The market’s growth is fueled by increasing demand for CO2 in industrial processes, advancements in medical technologies, and the growing popularity of carbonated beverages.

In recent years, there has also been an increasing focus on sustainable practices and carbon capture technologies, which are expected to influence the future development of the market. CO2 plays a key role in food preservation and carbonation processes, in addition to being utilized in enhanced oil recovery (EOR) and industrial applications.

Size & Share of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market achieved a volume of 725.80 KMT in 2024, and it is anticipated to grow at a CAGR of 1.50% between 2025 and 2034. This steady growth is expected to result in a market volume of 842.32 KMT by 2034. Several key factors contribute to the market’s growth, such as increasing demand from end-use industries and ongoing innovation in CO2 technologies.

Market Share by End-Use Industry

Food and Beverage: The largest segment in the CO2 market, the food and beverage industry, utilizes CO2 primarily for carbonation in soft drinks, beer, and sparkling water. CO2 also plays a role in food preservation and packaging.
Healthcare: The healthcare industry uses CO2 in applications like medical insufflation, cryotherapy, and respiratory therapies. With the rise of minimally invasive surgeries, the demand for CO2 in healthcare is steadily growing.
Oil & Gas: CO2 is injected into oil reservoirs for enhanced oil recovery (EOR), a process that involves using CO2 to increase the amount of crude oil extracted from a reservoir. The demand for CO2 in this sector is linked to fluctuations in oil production and exploration activities.
Chemical Manufacturing: In the chemical industry, CO2 is essential in the production of chemicals like urea, a key ingredient in fertilizers. CO2 also finds applications in plastics manufacturing, welding, and other industrial processes.

Market Dynamics & Trends in the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is shaped by several key dynamics and trends, including demand from various sectors, regulatory pressures, and sustainability initiatives. These factors are expected to continue influencing the market’s development over the next decade.

Increasing Demand for Carbonated Beverages :The food and beverage industry remains the dominant consumer of CO2 in the UK market. With rising consumer preferences for health-conscious, low-calorie, and naturally carbonated drinks, the demand for CO2 is expected to remain strong. CO2 is also used in the production of alcoholic beverages like beer and sparkling wines, supporting market growth.
Advancements in Healthcare Technologies :The growing trend of minimally invasive surgeries, endoscopy, and advanced respiratory therapies is expected to drive the demand for medical CO2. Medical-grade CO2 is used in surgeries for insufflation (to inflate the body cavity during procedures), cryotherapy (for freezing tissues), and as a respiratory support agent. These advancements in healthcare are expected to positively impact the market over the forecast period.
Carbon Capture and Storage (CCS) :There is increasing attention on carbon capture and storage (CCS) technologies as a solution to reduce greenhouse gas emissions. These technologies capture CO2 emissions from industrial processes, preventing them from entering the atmosphere. As the UK works towards its net-zero emissions target by 2050, the development of CCS technologies will likely play a role in the carbon dioxide market’s growth.
Industrial Applications and Chemical Manufacturing :The use of CO2 in the chemical manufacturing industry remains significant, particularly in the production of urea for fertilizers. Additionally, CO2 is used in plastics production, welding, and cooling systems. With industrialization and growth in the chemical sector, CO2 consumption in manufacturing processes is expected to remain steady.

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Growth of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is projected to experience steady growth in the coming years. As previously mentioned, the market attained a volume of 725.80 KMT in 2024 and is expected to grow at a CAGR of 1.50% during the forecast period (2025–2034), reaching a volume of 842.32 KMT by 2034.

Key Drivers of Market Growth

Rising Demand for Beverages: The expanding market for carbonated beverages, both alcoholic and non-alcoholic, will continue to drive the demand for CO2.
Healthcare Sector Growth: The increased use of CO2 in minimally invasive medical procedures, cryotherapy, and respiratory treatments will contribute to growth in the healthcare segment.
Environmental Regulations: Government regulations focused on carbon reduction and greenhouse gas emissions will support the development of carbon capture technologies, creating opportunities for the market.
Industrial Sector Expansion: CO2 demand in industrial applications such as chemical production, plastics manufacturing, and welding will remain a key growth driver.

Market Opportunities and Challenges

Opportunities

Carbon Capture and Storage (CCS): As the UK pushes toward a carbon-neutral future, the development of carbon capture and storage technologies presents a significant opportunity. Companies that can innovate in this area may play a pivotal role in the growing carbon dioxide market.
Healthcare and Medical Applications: Advancements in medical technologies offer growth potential for CO2 suppliers. The increasing adoption of minimally invasive surgeries and advanced medical treatments will drive demand for CO2 in medical applications.
Sustainable Beverage Production: The growing trend toward sustainable and environmentally friendly production processes in the beverage sector presents opportunities for CO2 suppliers. Manufacturers may seek CO2 solutions that are produced more sustainably, in line with global sustainability initiatives.
Enhanced Oil Recovery (EOR): As oil production continues to rise, the demand for CO2 in enhanced oil recovery (EOR) will remain significant. This provides a long-term opportunity for suppliers involved in CO2 production and distribution.

Challenges

Regulatory Compliance: The growing regulatory pressure to reduce CO2 emissions may increase operational costs for CO2 producers. Companies must invest in sustainable solutions and adhere to stringent environmental regulations, which could affect profitability.
Supply Chain Constraints: The transportation and distribution of CO2 can be logistically challenging. CO2 producers may face issues related to regional supply constraints, distribution costs, and capacity limitations, which can impact the overall efficiency of the market.
Fluctuating Prices: The price of CO2 is subject to fluctuations due to factors like raw material costs, supply-demand imbalances, and regulatory pressures. This volatility may impact the affordability of CO2 for end users and create challenges for market players.

Competitor Analysis in the United Kingdom Carbon Dioxide Market

Several key players dominate the United Kingdom carbon dioxide market. These companies offer a range of CO2 solutions for various applications, from food and beverage to healthcare and chemical production. Some of the key players in the market include:

BOC Limited (Linde) :BOC Limited, part of the Linde Group, is one of the leading suppliers of industrial gases, including carbon dioxide, in the United Kingdom. The company serves sectors such as food and beverage, healthcare, and chemical manufacturing, and is committed to offering sustainable CO2 solutions through carbon capture technologies.
Air Liquide UK Ltd :Air Liquide UK Ltd, a subsidiary of Air Liquide, is another key player in the UK carbon dioxide market. The company provides CO2 to various industries, including food and beverage, healthcare, and chemical production. Air Liquide is known for its strong focus on innovation and sustainability, offering environmentally friendly CO2 solutions.
Nippon Gases :Nippon Gases is a prominent supplier of industrial gases, including carbon dioxide, in the United Kingdom. The company serves industries such as food and beverage, healthcare, and chemical production. Nippon Gases is dedicated to providing high-quality CO2 solutions while maintaining a commitment to sustainable practices.
Progases (UK) Ltd :Progases (UK) Ltd is a leading player in the UK CO2 market, providing a wide range of industrial gases, including carbon dioxide. The company serves a variety of industries and is focused on delivering reliable CO2 solutions for applications in food and beverage, healthcare, and chemical manufacturing.
Others :Other players in the United Kingdom carbon dioxide market include Air Products Linde, and Praxair, all of which supply CO2 solutions across various industries.