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

The United Kingdom carbon dioxide (CO₂) market continues to grow, with an estimated volume of 725.8 KMT in 2024. This market is projected to experience a steady growth rate of 1.5% CAGR from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. The carbon dioxide industry is essential across several sectors, including food and beverage, healthcare, and chemical production. In this blog, we will explore the UK carbon dioxide market’s overview, size, trends, growth factors, analysis, forecast, and competitor insights.
United Kingdom Carbon Dioxide Market Overview
The carbon dioxide market in the United Kingdom plays a vital role in various industries, especially food and beverage, chemicals, and healthcare. CO₂ is utilized for carbonation in beverages, as a refrigerant, in fire suppression systems, and even for medical purposes such as in anesthesia. With increasing demand for these applications, the market for carbon dioxide is steadily expanding.
The carbon dioxide used in the UK is either produced from natural sources or as a byproduct of industrial processes, such as hydrogen production or natural gas processing. The country’s stringent environmental regulations and focus on sustainability are encouraging new methods of CO₂ production, including carbon capture and storage (CCS), which is expected to increase the market’s potential.
United Kingdom Carbon Dioxide Market Size
In 2024, the United Kingdom carbon dioxide market is valued at 725.8 KMT. This size reflects the substantial demand for CO₂ in multiple industries such as food and beverage production, healthcare, and industrial applications. Carbon dioxide is indispensable for processes like carbonating drinks, preserving food, and even in fire suppression systems, contributing to its steady demand.
The UK’s CO₂ production is supported by several key suppliers, ensuring that demand is met across industries. With CO₂ playing an essential role in both traditional and emerging sectors, the market size is expected to grow at a steady pace in the coming years, reaching 840.5 KMT by 2034.
United Kingdom Carbon Dioxide Market Trends
Several trends are shaping the UK carbon dioxide market, contributing to its future growth:
Sustainability and Carbon Capture: The focus on reducing carbon emissions and carbon capture technologies is a key trend in the UK market. The government’s investment in carbon capture and storage (CCS) projects is pushing the demand for CO₂, especially for applications in sustainable energy generation.
Growing Demand in Food and Beverage: The food and beverage industry remains one of the largest consumers of CO₂. With the rising popularity of carbonated beverages and food preservation, demand for CO₂ in this sector is projected to continue growing.
Healthcare Applications: CO₂ is used in various healthcare applications, such as for medical gases and in anesthesia. The growing healthcare sector, driven by an aging population and medical advancements, is expected to boost CO₂ demand in this area.
Industrial and Chemical Uses: Industrial applications, including its use as a refrigerant and in the chemical manufacturing process, are expanding. The chemical and petrochemical industries rely heavily on CO₂ for producing chemicals like urea and methanol.
Increased Regulation of Emissions: Stringent environmental regulations are shaping how CO₂ is used and produced. These regulations are encouraging industries to explore greener technologies, including the recycling and reuse of CO₂, to reduce their environmental footprint.
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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 carbon dioxide market in the UK is projected to witness a stable growth rate, with a CAGR of 1.5% from 2025 to 2034. This growth is driven by the increasing need for CO₂ across various sectors, especially food and beverage, healthcare, and chemicals. Furthermore, technological advancements in CO₂ production and sustainable practices like carbon capture will provide a solid foundation for long-term market growth.
The expansion of the food and beverage industry, coupled with the growing emphasis on reducing carbon emissions, ensures that CO₂ demand will remain robust. The rise in industrial applications and advancements in CO₂ recovery technologies will continue to provide new opportunities for growth.
United Kingdom Carbon Dioxide Market Analysis
The UK’s carbon dioxide market is influenced by several factors, including:
End-User Demand: The food and beverage sector is one of the largest consumers of CO₂, followed by the healthcare and chemical industries. The steady demand for carbonated drinks, packaged foods, and medical uses will continue to drive market demand.
Production Technologies: CO₂ production is mainly driven by industrial processes such as natural gas processing, hydrogen production, and ethanol production. Advances in CO₂ recovery and recycling methods, as well as CCS technologies, will help ensure sustainable production and supply.
Regional Dynamics: Geographical factors influence CO₂ production and distribution in the UK, with major industrial zones being the focal points for production and consumption. Increased investment in CCS infrastructure and renewable energy projects is expected to further shape regional dynamics.
Regulatory Environment: Stringent regulations around CO₂ emissions are pushing industries to adopt more sustainable practices. The UK government’s push for carbon neutrality by 2050 is motivating industries to implement carbon capture and sustainable energy solutions, driving CO₂ demand.
United Kingdom Carbon Dioxide Market Forecast
By 2034, the United Kingdom carbon dioxide market is forecast to reach a volume of 840.5 KMT, growing at a CAGR of 1.5%. This forecast highlights the stable and consistent demand for CO₂ across various applications, particularly in the food and beverage, healthcare, and industrial sectors.
The market is likely to benefit from advancements in CO₂ capture technologies and an increased focus on sustainability. Additionally, as industries continue to expand their carbon footprint reduction efforts, the role of CO₂ in both traditional and emerging applications will become even more prominent.
Competitor Analysis
Several key players dominate the UK carbon dioxide market, providing essential CO₂ solutions to industries across the country. Some of the prominent companies operating in the market include:
Ensus UK Limited: A major supplier of CO₂ for agricultural, industrial, and beverage applications.
BioCarbonics Ltd.: Specializes in providing carbon dioxide solutions for healthcare and industrial applications.
Tata Chemicals Europe Limited: Known for producing high-quality carbon dioxide for various industrial applications, including chemical manufacturing.
Yara International ASA: Offers CO₂ for agricultural use and as part of sustainable industrial processes.
Air Products PLC: A global leader in the gases and chemicals industry, including carbon dioxide production and supply.
Others: Several regional and local players also compete in the UK CO2 market, providing specialized products and services to meet the needs of niche industries and smaller sectors.
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