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

The UK carbon dioxide market comprises both domestic production and imported CO₂, supplied by several industrial gas companies. This demand is primarily driven by the food and beverage industry, with CO₂ used for beverage carbonation, food preservation, and modified atmosphere packaging (MAP), among other applications.

Business Jan 30, 2025 44 Add to Reading List

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

The United Kingdom (UK) carbon dioxide (CO₂) market reached a volume of 725.8 KMT in 2024, with projections indicating steady growth at a compound annual growth rate (CAGR) of 1.5% from 2025 to 2034. By the end of this forecast period, the market is expected to attain a volume of approximately 840.5 KMT. This growth is driven by a variety of industries that rely heavily on CO₂ for applications such as food and beverages, healthcare, and industrial uses. In this blog post, we’ll explore the UK carbon dioxide market in-depth, covering the market overview, size, trends, growth drivers, and competitor landscape.

United Kingdom Carbon Dioxide Market Overview

The UK carbon dioxide market is crucial for a range of applications, from carbonating beverages to providing medical gases, and supporting industrial processes like food preservation, oil extraction, and welding. As an industrial gas, CO₂ is essential for numerous sectors, driving its sustained demand in the UK. Additionally, CO₂ plays a vital role in combating climate change, being utilized in carbon capture and sequestration (CCS) technologies to reduce carbon emissions. The market also benefits from the growing trend of CO₂ recovery and reuse, which is becoming increasingly important in the context of global sustainability goals.

United Kingdom Carbon Dioxide Market Size

In 2024, the UK carbon dioxide market was valued at approximately 725.8 KMT. As one of the most widely used industrial gases, CO₂ is essential for key sectors including food and beverages, healthcare, and chemicals. Given the projected CAGR of 1.5% during the forecast period from 2025 to 2034, the market is expected to grow to 840.5 KMT by 2034.

This steady growth is attributed to several factors, including technological advancements in CO₂ production, recovery, and storage processes, as well as an increasing demand for CO₂ across diverse industries. The UK’s commitment to reducing greenhouse gas emissions through sustainability measures also fuels interest in innovative CO₂ recovery technologies.

United Kingdom Carbon Dioxide Market Trends

Several trends are shaping the future of the UK carbon dioxide market:

Growth in Food and Beverage Applications: The food and beverage industry remains the largest consumer of CO₂, particularly for carbonation in drinks and preservation of perishable foods. As consumer demand for carbonated beverages continues to rise, the need for CO₂ will grow accordingly.

Technological Advancements in CO₂ Utilization: Innovations in carbon capture, utilization, and storage (CCUS) technologies are expected to reshape the CO₂ market. These technologies aim to capture CO₂ emissions from industrial processes and use it for beneficial purposes, including enhanced oil recovery (EOR) and chemical production.

Environmental Regulations and Sustainability Focus: The UK is committed to meeting stringent sustainability targets, which includes reducing CO₂ emissions. The focus on carbon neutrality drives demand for CO₂ in various industries that are increasingly adopting carbon capture and storage solutions to reduce their carbon footprints.

Healthcare Sector Demand: CO₂ is widely used in healthcare for medical imaging, respiratory treatments, and as a component in medical gases. As the UK’s healthcare sector continues to grow, the demand for CO₂ in medical applications is expected to rise.

Oil Recovery and Industrial Uses: CO₂ plays a critical role in enhanced oil recovery (EOR), where it is injected into oil reservoirs to increase extraction rates. Additionally, CO₂ is used in various industrial processes, such as chemical production and welding, contributing to the overall demand in the market.

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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 UK carbon dioxide market is expected to grow at a moderate pace throughout the forecast period, expanding at a CAGR of 1.5% between 2025 and 2034. Several factors drive this growth:

Rising Demand in the Food and Beverage Industry: The UK’s preference for carbonated soft drinks, alcoholic beverages, and convenience foods continues to create a steady demand for CO₂. Additionally, CO₂’s role in food preservation and packaging further drives its importance in the industry.

Advancements in CO₂ Recovery Technologies: As environmental concerns heighten, advancements in CO₂ recovery and utilization technologies will allow industries to capture CO₂ emissions and use them in other processes, thereby expanding the CO₂ market.

Sustainability Initiatives: As businesses across the UK align with sustainability goals, there is an increased demand for CO₂ recovery and recycling technologies. Government regulations also push industries to reduce their environmental impact, further supporting the demand for CO₂.

Increasing Healthcare Needs: The ongoing demand for medical gases, including CO₂ in healthcare applications, will continue to drive market growth. This trend is expected to be sustained by the UK’s aging population and evolving healthcare needs.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is a competitive and dynamic landscape, with several key players contributing to market growth. Industrial gas companies supply CO₂ to a broad range of industries, including food, beverage, healthcare, chemicals, and energy. Companies also compete on their ability to provide reliable, cost-effective solutions for CO₂ production, recovery, and distribution.

Market Fragmentation: The market is fragmented, with both large multinational corporations and smaller regional players serving the diverse needs of industries. Major companies leverage economies of scale and technological innovations to maintain their competitive edge.

Industry Consolidation: Consolidation is evident in the UK CO₂ market, as larger firms acquire smaller competitors to expand their market share and geographic reach. Strategic mergers and acquisitions help companies diversify their portfolios and strengthen their supply chain.

Regulatory Impact: The carbon dioxide market is influenced by environmental regulations and sustainability targets. As the UK government pushes for carbon neutrality and stricter emissions reductions, the role of CO₂ in industrial processes is evolving. Businesses are increasingly adopting technologies that allow for the efficient capture and reuse of CO₂, contributing to the market’s growth.

United Kingdom Carbon Dioxide Market Forecast

The UK carbon dioxide market is set to experience steady growth, reaching a volume of 840.5 KMT by 2034. The forecast period will see a 1.5% CAGR from 2025 to 2034, driven by factors such as increasing demand from the food and beverage industry, advancements in CO₂ recovery and utilization technologies, and regulatory initiatives promoting sustainability. The key drivers of growth will include:

Sustained Demand for CO₂ in Carbonated Beverages: The continued popularity of carbonated drinks and the use of CO₂ in food packaging will maintain strong demand from the food and beverage industry.
Expansion of CO₂ Applications in Healthcare: The healthcare sector's growing need for CO₂ for medical imaging and respiratory treatments will contribute to market growth.
Focus on Sustainability and Carbon Capture: As the UK strives to meet environmental goals, the adoption of CO₂ recovery and utilization technologies will become more widespread, enhancing market potential.

Competitor Analysis

The UK carbon dioxide market features a mix of multinational corporations and regional players, each with a significant share of the market. Notable companies include:

BioCarbonics Ltd.: Specializes in the supply of CO₂ for industrial and medical applications, including carbonation and medical gas production.

Tata Chemicals Europe Limited: A leading supplier of industrial gases, including CO₂, to sectors like food and beverage, chemicals, and energy.

Yara International ASA: Provides CO₂ for industrial uses, including chemical production and fertilizers, with a growing focus on sustainability.

Air Products PLC: A global leader in industrial gases, Air Products supplies CO₂ to a wide range of industries, including food and beverage, chemicals, and healthcare.

BOC Limited (Linde): BOC, part of Linde, is a major supplier of CO₂ for multiple applications, including food and beverage carbonation and industrial processes.

Air Liquide UK Ltd.: A prominent player in the global industrial gases market, Air Liquide supplies CO₂ for industrial, medical, and food applications.

Nippon Gases: A leading supplier of industrial gases in the UK, Nippon Gases serves the food, beverage, and healthcare sectors, providing high-quality CO₂ for a variety of applications.

Others: The market also includes other regional and international suppliers, contributing to CO2 production, distribution, and innovation across various sectors in the UK.

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