United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market size attained a volume of 725.80 KMT in 2024. Bolstered by the growing demand from the food and beverage industry, rising industrial applications, and increasing awareness of CO2’s role in various sectors, the market is projected to expand at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a volume of 842.32 KMT by 2034.

Carbon dioxide is a colorless, odorless gas that is used in a wide range of applications, from carbonating soft drinks and food preservation to industrial processes like welding and enhanced oil recovery. As the UK continues to experience growth in its industrial, food, and beverage sectors, coupled with the push for environmental sustainability, the demand for CO2 is expected to increase significantly. The versatility of CO2 as a critical component in numerous industries underpins its growing importance in the national economy.

Key Drivers of Market Growth

The expansion of the United Kingdom carbon dioxide market can be attributed to several factors, with the dominant driver being the increased demand from the food and beverage industry. Carbon dioxide plays a crucial role in the carbonation of soft drinks, beers, and other carbonated beverages. Its use in the preservation of packaged food through modified atmosphere packaging (MAP) also contributes to market growth, as it helps extend shelf life by reducing the growth of microorganisms. As consumer demand for convenience foods and beverages rises, CO2 remains integral to ensuring product quality, safety, and freshness, driving continued growth in its use across the sector.

Additionally, the UK’s commitment to reducing carbon emissions and pursuing environmental sustainability is fostering the adoption of CO2 for industrial purposes. Carbon dioxide is increasingly being used in applications like supercritical CO2 extraction, which is gaining popularity in the extraction of natural products such as essential oils and flavors. This environmentally friendly method reduces the need for harmful solvents, providing a more sustainable solution for industries focused on eco-conscious production processes.

Another crucial driver of market growth is the ongoing demand for CO2 in the healthcare sector. The use of carbon dioxide in medical procedures, particularly in laparoscopic surgeries, where it is employed to inflate the abdominal cavity, is growing. This growth in healthcare applications is further reinforced by the UK’s emphasis on improving healthcare infrastructure, contributing to the steady demand for CO2.

Industrial Applications

While the food and beverage sector remains the largest end-user of CO2, several industrial applications are also pivotal in driving demand for United Kingdom carbon dioxide market. The oil and gas industry’s use of CO2 for enhanced oil recovery (EOR) is a key contributor to the market, as CO2 is injected into oil reservoirs to increase pressure and improve oil recovery rates. With the UK’s continued focus on oil and gas exploration, particularly in the North Sea, the demand for CO2 in this application is expected to remain robust.

In addition, CO2 plays an essential role in various industrial processes such as welding, where it is used as a shielding gas to protect the molten metal from atmospheric contamination. This is especially important in industries like automotive manufacturing and metal fabrication, where the need for precision welding is growing. The increasing number of manufacturing facilities in the UK, particularly in sectors such as aerospace, automotive, and electronics, will continue to drive the demand for CO2 in welding applications.

Furthermore, CO2 is used in the chemical industry for the production of urea and other chemicals, further contributing to the United Kingdom carbon dioxide market growth. The growing need for fertilizers, particularly in agricultural sectors, also boosts the demand for CO2, making the chemical industry a critical sector for its continued consumption.

Technological Advancements and Innovations

The United Kingdom carbon dioxide market is benefitting from technological advancements that are enhancing CO2 production, distribution, and utilization. One of the key innovations is the development of more efficient CO2 capture and storage technologies. These advancements aim to reduce the environmental impact of CO2 emissions by capturing and repurposing the gas for various industrial uses. This technology has significant potential to enhance the sustainability of CO2 consumption, addressing concerns about climate change and contributing to the UK’s ambitious carbon neutrality goals.

Additionally, innovations in CO2 liquefaction technologies have improved the ease of transportation and storage. As the UK’s industrial and agricultural sectors expand, the demand for easily transportable CO2 in liquid form will increase. Improved transportation networks for CO2, including pipeline infrastructure, further support the market’s growth, ensuring that CO2 can reach key industries that require it for production processes.

The growing use of CO2 in carbon capture and utilization (CCU) technologies also reflects a significant innovation in the market. These technologies not only help mitigate the environmental impact of CO2 emissions but also open new markets for CO2 usage, including in the production of chemicals, building materials, and even synthetic fuels. As these technologies mature and gain traction, they are expected to create new growth opportunities for the carbon dioxide market in the UK.

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United Kingdom Carbon Dioxide Market Segmentation

The market can be divided based on source, production and End use.

Breakup by Source

• Ammonia
• Ethyl Alcohol
• Substitute Natural Gas and CCU

Breakup by Production

• Biological
• Combustion

Breakup by End Use

• Food and Beverages
• Oil and Gas
• Medical
• Metal Fabrication
• Others

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Ensus UK Limited
• BioCarbonics Ltd.
• Tata Chemicals Europe Limited
• Yara International ASA
• Air Products PLC
• BOC Limited (Linde)
• Air Liquide UK Ltd
• Nippon Gases
• Progases (UK) Ltd
• Others

Regulatory and Environmental Considerations

Regulatory frameworks and environmental considerations are playing a crucial role in shaping the United Kingdom carbon dioxide market. The UK government has implemented stringent regulations regarding industrial emissions and carbon capture, fostering the development and implementation of sustainable CO2 practices. With the UK's ambitious goal of achieving net-zero carbon emissions by 2050, there is a concerted effort to develop systems that enable the effective capture, utilization, and storage of CO2.

Furthermore, the government has introduced policies to incentivize the use of CO2 in various sectors, particularly in manufacturing and energy production, where it can be used to reduce emissions and facilitate sustainable practices. These regulations are designed to encourage innovation in CO2 technologies, promoting environmental sustainability while stimulating economic growth in industries reliant on carbon dioxide.

The EU Emissions Trading System (ETS), in which the UK has been a part post-Brexit, also influences the carbon dioxide market by creating a financial incentive for companies to reduce their CO2 emissions. This market-based approach to emissions control encourages businesses to adopt CO2-efficient technologies and processes, further driving the demand for carbon dioxide utilization in more sustainable applications.

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