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

United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market reached a value of approximately 725.80 KMT in 2024. As demand for CO2 increases across various industries such as food and beverage, healthcare, oil and gas, and manufacturing, the market is expected to grow at a CAGR of 1.50% from 2025 to 2034, reaching a value of 842.32 KMT by 2034.

Carbon dioxide is a key industrial gas with a broad range of applications. It is used extensively in the carbonation of beverages, medical treatments, enhanced oil recovery, and refrigeration, among others. With growing environmental concerns and the UK’s commitment to achieving net-zero emissions by 2050, the market is also seeing increased interest in CO2 capture and utilization technologies. These developments are expected to shape the future of the UK CO2 market, driving further expansion and offering new opportunities for businesses and stakeholders in the coming years.

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Key Drivers of Market Growth

Increasing Demand from the Food and Beverage Industry: The food and beverage industry remains one of the largest consumers of carbon dioxide in the UK. CO2 is primarily used in carbonating beverages, including soft drinks, beer, sparkling waters, and carbonated alcoholic beverages. As the demand for healthier, low-sugar, and alternative beverages continues to rise, CO2’s role in beverage carbonation remains essential.

Additionally, CO2 is widely used in food preservation. The gas is employed to extend the shelf life of perishable goods, especially in the form of dry ice for transportation and storage. This growing demand for CO2 in both beverage carbonation and food preservation continues to be a major driving force in the UK’s CO2 market.

As consumer preferences evolve, with an increased focus on sustainability and health-conscious choices, the food and beverage sector's demand for CO2 is likely to remain strong, supporting long-term market growth.

Healthcare and Medical Applications: The healthcare industry is another key contributor to the UK’s CO2 market. Carbon dioxide is used in a variety of medical applications, including for insufflation during minimally invasive surgeries, such as laparoscopic procedures. In these surgeries, CO2 is introduced into the body to create space for the surgeon to work, making the procedure safer and more effective.

Moreover, CO2 is used in the production of medical-grade aerosols, including inhalers and other respiratory treatments. With the healthcare sector growing in response to the UK’s aging population and increasing focus on minimally invasive treatments, the demand for CO2 is expected to rise.

Additionally, CO2’s role in cryotherapy and as a refrigerant in medical storage further supports the market's continued expansion. The healthcare industry's growth, coupled with advancements in medical technology, will continue to drive demand for CO2 in the coming years.

Oil and Gas Industry: Carbon dioxide plays a vital role in the oil and gas industry, particularly in enhanced oil recovery (EOR). In EOR, CO2 is injected into oil reservoirs to increase the pressure and improve the flow of oil, making it easier to extract. The increasing demand for oil and gas, along with the need to maximize extraction efficiency from existing fields, positions CO2 as a critical tool in this sector.

As the UK continues to rely on oil and gas for energy production, the need for CO2 in EOR applications is expected to continue growing. CO2 is also used in the oil and gas industry for a variety of other purposes, including as a refrigerant and in the production of chemicals. The role of CO2 in improving oil production rates and efficiency will continue to drive its demand within the sector.

Industrial Applications: In the industrial sector, carbon dioxide is used for a range of purposes, including as a refrigerant, in chemical production, and in the manufacture of materials such as plastics and metals. CO2’s role as a refrigerant is particularly important in sectors like food processing, pharmaceuticals, and the automotive industry, where precise temperature control is required.

Furthermore, CO2 is used in the production of chemicals such as urea, methanol, and salicylic acid, all of which are integral to various industries, including agriculture, pharmaceuticals, and construction. As the UK’s manufacturing sector continues to evolve and demand for high-quality products increases, the need for CO2 in these applications will further boost market growth.

Focus on Carbon Capture and Utilization (CCU): The UK has made a strong commitment to achieving net-zero carbon emissions by 2050, which has spurred greater interest in carbon capture and utilization (CCU) technologies. CCU technologies allow CO2 emissions from industrial processes to be captured and repurposed, either for use in other processes or as a raw material for the production of valuable products such as biofuels, chemicals, or even building materials.

The growing interest in CCU is driven by the need to reduce carbon footprints across multiple industries while simultaneously promoting sustainability and innovation. As the UK works to meet its environmental goals, the development of CCU technologies will play a critical role in shaping the CO2 market. This could also create new business opportunities, with companies developing more efficient methods for CO2 capture and reuse.

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

Challenges in the Market

Despite the favorable growth prospects, the UK carbon dioxide market faces several challenges. One of the primary concerns is the reliance on traditional methods of CO2 production, particularly through natural gas and other fossil fuels. These methods contribute to the release of greenhouse gases, which contradicts the UK’s efforts to reduce overall emissions and achieve net-zero by 2050.

Additionally, the transportation and storage of CO2 present logistical challenges. CO2 is typically transported in bulk via pipelines or tankers, and any disruptions to these supply chains—whether caused by geopolitical issues, infrastructure limitations, or natural disasters—could lead to supply shortages and price fluctuations. These challenges require ongoing investments in infrastructure and technology to ensure stable and efficient CO2 supply.

Technological Innovations and Future Outlook

As environmental sustainability becomes a higher priority, technological advancements in CO2 production and utilization will play a pivotal role in shaping the future of the market. Innovations in carbon capture and utilization (CCU) technologies are expected to increase the viability of CO2 as a resource rather than a waste product, leading to more sustainable industrial processes.

Additionally, the development of bio-based CO2 production methods and improved extraction processes are expected to reduce the environmental impact of CO2 production. These technologies will not only enhance the market’s sustainability but will also offer new opportunities for growth, particularly in industries focused on reducing carbon emissions.

The growth of renewable energy sources and the transition to a low-carbon economy will also likely create new demand for CO2 in applications such as energy storage, power generation, and carbon neutral products. As the UK pushes forward with its net-zero commitment, these innovations will play a crucial role in ensuring that the carbon dioxide market remains robust and adaptable to changing environmental goals.

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