United Kingdom Carbon Dioxide Market Size, Share, Trends & Forecast | 2034

United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size achieved a value of  725.80 KMT in 2024. Driven by the growing demand across diverse industries such as food and beverages, healthcare, energy, and manufacturing, the market is anticipated to expand further at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a market value of 842.32 KMT  by 2034.

Carbon dioxide is an essential gas used in a wide variety of industries, ranging from food preservation and medical applications to energy production and manufacturing. The growing demand for carbonated beverages, advancements in carbon capture technologies, and the expanding role of CO2 in enhanced oil recovery (EOR) are among the key factors driving the United Kingdom carbon dioxide market. Additionally, the increasing need for environmental sustainability and the government’s regulatory push towards reducing emissions are expected to further influence market dynamics, especially with the development of carbon capture, utilization, and storage (CCUS) technologies.

Key Market Drivers

Rising Demand from the Food and Beverage Industry: The food and beverage sector remains one of the largest consumers of carbon dioxide in the United Kingdom. CO2 is extensively used for carbonation in soft drinks, beer, and sparkling water, where it provides effervescence and helps in flavor enhancement. As consumer preferences shift toward premium and health-conscious beverages, the demand for CO2 in this sector continues to grow.

In addition to carbonation, CO2 plays a crucial role in food preservation. The use of CO2 in modified atmosphere packaging (MAP) helps extend the shelf life of perishable products such as meats, fruits, vegetables, and dairy. The increasing demand for packaged foods, particularly in the ready-to-eat and frozen food segments, has contributed significantly to the demand for carbon dioxide in food packaging, further driving the market expansion.

The growing interest in non-alcoholic beverages, including sparkling water and low-calorie drinks, is likely to spur increased CO2 usage. These shifts in consumer behavior, paired with innovations in beverage formulations, make the food and beverage industry a significant contributor to market growth.

Healthcare Applications and Medical Use: The medical and healthcare sectors are witnessing an increase in the demand for carbon dioxide. CO2 is widely used in medical treatments, particularly for laparoscopic surgery. The gas is introduced into the body to create space, enabling surgeons to work more efficiently in minimally invasive procedures. Moreover, CO2 is utilized in respiratory care, as part of mixtures for anesthesia, and for specific therapies related to respiratory distress.

The expanding healthcare infrastructure in the United Kingdom, coupled with the aging population and rising demand for surgical procedures, is likely to drive the continued use of CO2 in medical applications. As hospitals and healthcare facilities require a constant and reliable supply of medical-grade CO2, the healthcare industry will remain a vital driver of market growth.

Energy and Enhanced Oil Recovery: The energy sector, specifically oil and gas production, is another critical consumer of carbon dioxide in the United Kingdom. CO2 is injected into mature oil fields in enhanced oil recovery (EOR) operations, where it helps reduce the viscosity of oil and increases production rates. The United Kingdom, with its focus on optimizing energy extraction methods and improving oil recovery techniques, will likely see continued growth in the demand for CO2 for these purposes.

As the UK government continues to push for improved energy security and the efficient use of domestic energy resources, CO2 injection in EOR projects is expected to remain a significant driver in the market. Moreover, the development of carbon capture, utilization, and storage (CCUS) technologies, which aim to capture CO2 from industrial sources and use it for EOR, will likely boost demand in the energy sector.

Regulations and Environmental Sustainability: The United Kingdom’s commitment to achieving net-zero emissions by 2050 is a significant catalyst for the growth of the CO2 market, especially in the context of carbon capture and storage initiatives. Carbon dioxide is increasingly being captured from industrial processes and stored to mitigate its release into the atmosphere, contributing to the government’s emissions reduction targets.

In addition to CCUS, there is growing interest in utilizing CO2 for various industrial applications, such as the production of chemicals, fuels, and building materials. CO2 utilization not only helps reduce emissions but also provides economic value by converting waste CO2 into useful products. This trend is likely to support market growth as both the public and private sectors invest in the development of these sustainable technologies.

The United Kingdom government’s policies and regulations surrounding CO2 emissions are expected to increase demand for CO2 capture, storage, and utilization solutions, further contributing to the market’s expansion.

Industrial and Manufacturing Uses: Carbon dioxide is an essential component in several industrial applications. It is used in welding, as CO2 is an important shielding gas in metal welding processes, preventing contamination and ensuring high-quality welds. Additionally, CO2 is used in the chemical industry for various reactions, as well as in the production of plastics, rubber, and other materials.

The growing industrialization in the United Kingdom and the demand for high-quality manufacturing products are expected to contribute to the increased use of CO2 across these applications. The demand for CO2 in manufacturing processes is likely to continue to rise as industries pursue more efficient and sustainable production methods.

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United Kingdom Carbon Dioxide Market Segmentation     

The United Kingdom carbon dioxide market can be divided based on source, production, 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 key 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

Regional Insights

Supply Chain and Logistics Issues: A significant challenge facing the carbon dioxide market in the United Kingdom is the potential for supply disruptions. CO2 is typically produced as a byproduct of industrial processes, such as ammonia production and natural gas processing. Any disruption in these sectors—whether due to maintenance issues, supply chain bottlenecks, or market conditions—can lead to CO2 shortages.

The COVID-19 pandemic highlighted the vulnerability of CO2 supply chains, as several industries, including the food and beverage sector, experienced CO2 shortages due to plant shutdowns and production halts. To mitigate such risks, the industry must invest in diversified production sources and more efficient storage and transportation networks to ensure a steady supply of CO2.

Environmental and Regulatory Pressures: While carbon dioxide is used in many critical applications, it is also a significant greenhouse gas contributing to climate change. As the United Kingdom continues to pursue aggressive climate policies and strives for net-zero emissions by 2050, regulations around CO2 emissions and capture technologies are becoming more stringent.

These evolving environmental regulations may create challenges for industries that rely on CO2 in their production processes. Manufacturers and suppliers must comply with regulations related to CO2 production, transportation, and storage. Additionally, the high cost of carbon capture and storage technology could pose a financial burden for some companies, which may slow the pace of adoption in certain sectors.

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