The United Kingdom carbon dioxide market attained a volume of 725.8 KMT in 2024. The market is projected to witness a steady growth rate, with a CAGR of 1.5% from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. This growth is primarily driven by the increasing demand for CO₂ across various sectors, including food and beverages, medical applications, and metal fabrication. The adoption of sustainable production methods and advancements in carbon capture technologies also play a pivotal role in shaping the market's future.

In this blog post, we’ll explore the key segments of the United Kingdom carbon dioxide market, analyze its production dynamics, and highlight the role of leading industry players.

Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market

Ammonia

Ammonia production is one of the primary sources of CO₂ in the United Kingdom carbon dioxide market, as CO₂ is a by-product of ammonia manufacturing. Ammonia is essential in producing fertilizers, and the CO₂ captured during its production is used in industries such as food processing. Companies like Yara International ASA and Tata Chemicals Europe Limited are enhancing CO₂ recovery systems to support this demand and ensure sustainability.

Ethyl Alcohol

Ethyl alcohol production, particularly in bioethanol and fermentation processes, is another major source of CO₂ in the UK. The demand for bioethanol, especially for use in the food and beverage industry, is expected to drive CO₂ production from this source. BioCarbonics Ltd. leads in providing bio-based CO₂ solutions, catering to industries seeking cleaner, more sustainable CO₂ sources.

Substitute Natural Gas (SNG)

SNG processes contribute to the carbon dioxide market in the United Kingdom, with CO₂ being a by-product of natural gas processing. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are at the forefront of improving CO₂ capture technologies from SNG operations, making them more efficient and sustainable.

Production Methods in the United Kingdom Carbon Dioxide Market

Biological Production

Biological CO₂ production methods, such as fermentation and anaerobic digestion, are gaining popularity in the United Kingdom carbon dioxide market due to their sustainability benefits. Ensus UK Limited is a significant player in bioethanol production, where the fermentation process generates large quantities of CO₂ for use in food and beverage industries. The increasing focus on sustainability is driving demand for these environmentally friendly production techniques.

Combustion Production

Combustion remains a major method of CO₂ production, especially in power generation and industrial processes. However, combustion-based CO₂ production faces environmental challenges. To address this, companies like Air Products PLC and Air Liquide UK Ltd are investing in carbon capture, utilization, and storage (CCUS) technologies, which help mitigate CO₂ emissions while still supplying industries with the CO₂ they require.

Key End-Use Applications in the United Kingdom Carbon Dioxide Market

Food and Beverages

The food and beverage sector is the largest consumer of CO₂ in the United Kingdom carbon dioxide market, with CO₂ being used in carbonated drinks, food preservation, and packaging. As demand for carbonated beverages and packaged food grows, so does the need for food-grade CO₂. Companies like BOC Limited (Linde) and BioCarbonics Ltd. are helping meet this demand with sustainable CO₂ production solutions.

Oil and Gas

In the oil and gas sector, CO₂ is utilized in enhanced oil recovery (EOR) processes, where it is injected into oil reservoirs to increase extraction rates. While the UK is transitioning to renewable energy, EOR remains an important application. Leading players such as Air Products PLC and Nippon Gases continue to supply CO₂ for these critical industrial processes.

Medical Applications

Medical-grade CO₂ is used in various healthcare applications, including respiratory therapies and minimally invasive surgeries. The growing healthcare sector in the UK is expected to continue driving demand for CO₂. Progases (UK) Ltd and Nippon Gases are key suppliers of high-quality medical CO₂, ensuring the safe and efficient delivery of healthcare services.

Metal Fabrication

The metal fabrication industry in the UK utilizes CO₂ for welding and cutting applications. As manufacturing industries such as automotive and construction expand, the demand for CO₂ in metal fabrication is anticipated to grow. Tata Chemicals Europe Limited and Air Liquide UK Ltd are poised to cater to this demand, ensuring the supply of high-quality CO₂ for industrial uses.

Other Applications

CO₂ also finds applications in other sectors such as water treatment, fire suppression, and chemical production. These diverse uses contribute to the continued demand for CO₂ across the United Kingdom carbon dioxide market.

Market Dynamics of the United Kingdom Carbon Dioxide Market

SWOT Analysis

Strengths

• A well-established infrastructure for CO₂ production and distribution in the UK.
• Strong demand from key sectors, including food and beverages, healthcare, and industrial applications.
• A range of CO₂ production sources that ensure a consistent supply.

Weaknesses

• Over-reliance on specific CO₂ production methods, such as ammonia and ethyl alcohol.
• Environmental concerns surrounding combustion-based CO₂ production.

Opportunities

• Growing interest in sustainable CO₂ production methods, including biological processes.
• Advancements in carbon capture and storage technologies.
• Increasing demand for CO₂ in emerging sectors such as healthcare and renewable energy.

Threats

• Stringent environmental regulations and emissions restrictions.
• Potential competition from alternative gases and technologies.
• Volatile supply chains impacted by geopolitical or economic factors.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investments and regulatory requirements create significant barriers to market entry.
• Bargaining Power of Suppliers: The market is concentrated around a few key players, giving suppliers moderate bargaining power.
• Bargaining Power of Buyers: While there are multiple suppliers, buyers still require reliable quality and delivery, giving them some bargaining power.
• Threat of Substitutes: The potential development of alternative gases or technologies could pose a threat to traditional CO₂ applications.
• Industry Rivalry: Intense competition among established players drives technological innovation and cost efficiency.

Competitive Landscape in the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is home to several prominent players that are continuously innovating to meet the growing demand for CO₂ across various industries. Key players in the market include:

• Ensus UK Limited: Focuses on bioethanol production, contributing to the biological CO₂ supply chain.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions, particularly for the food and beverage sector.
• Tata Chemicals Europe Limited: Supplies CO₂ for industrial applications such as metal fabrication.
• Yara International ASA: A leader in ammonia-based CO₂ production and recovery.
• Air Products PLC: A major supplier of CO₂ for industrial and medical applications, including advanced carbon capture technologies.
• BOC Limited (Linde): Offers a broad range of CO₂ solutions for the food and beverage, healthcare, and industrial sectors.
• Air Liquide UK Ltd: Invests in sustainable CO₂ production technologies and carbon capture solutions.
• Nippon Gases: Provides medical-grade CO₂ and supports various industrial applications.
• Progases (UK) Ltd: Focuses on delivering CO₂ for specialized industries, including healthcare and fire suppression.