United Kingdom Carbon Dioxide Market: Trends, Growth, and Competitive Landscape (2025-2034)

The United Kingdom carbon dioxide market is an essential part of several industries, from food and beverage to industrial applications, and is poised for steady growth over the next decade. With a volume of 725.80 KMT in 2024, the market is estimated to witness a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a projected volume of 842.32 KMT by 2034. This growth is being driven by a variety of factors, including rising industrial demands, food and beverage needs, and advancements in carbon capture technologies.

In this article, we explore the United Kingdom carbon dioxide market in-depth, examining its overview, market size, share, key dynamics, emerging trends, growth drivers, challenges, and competitor analysis.

Overview of the United Kingdom Carbon Dioxide Market

Carbon dioxide (CO2) is a critical industrial gas with a wide range of applications. In the United Kingdom, CO2 is used extensively in industries such as food and beverage (for carbonation), chemical manufacturing, water treatment, medical applications, and as a refrigerant in cooling systems. The market for CO2 in the UK is shaped by several key factors, including its use in industrial processes, the growing demand for CO2 in medical and healthcare applications, and advancements in sustainability efforts.

The market’s growth is driven by the increasing demand for CO2 in multiple sectors, particularly food and beverage, where it is used for carbonation in soft drinks, beer, and other carbonated beverages. Additionally, CO2 is used in fire extinguishers, as a refrigerant in the cooling sector, and as a raw material for chemical production. However, the market is also subject to challenges, including environmental concerns, supply chain disruptions, and competition from other gases.

Size and Share of the United Kingdom Carbon Dioxide Market

Market Size

In 2024, the UK carbon dioxide market is valued at 725.80 KMT, representing a steady demand across several key sectors. This volume is expected to grow at a CAGR of 1.50% between 2025 and 2034, reaching 842.32 KMT by 2034. The food and beverage industry remains one of the largest end-users of CO2, contributing significantly to the market’s current size. Additionally, the increasing adoption of CO2 in medical and industrial applications is expected to further expand the market.

Market Share by Application

The market share of CO2 is divided across various application sectors, each having its distinct demand characteristics. Some key segments include:

• Food and Beverage Industry: The food and beverage segment dominates the CO2 market in the UK, accounting for a significant portion of the total market share. CO2 is mainly used for carbonation in soft drinks, beer, sparkling water, and other beverages. As the demand for carbonated beverages continues to rise, this sector remains a key driver for market growth.
• Chemical Industry: CO2 is used as a feedstock in the production of various chemicals, including urea, methanol, and other industrial products. The increasing industrial production in the UK drives the demand for CO2 as a raw material.
• Medical Applications: CO2 is also widely used in the medical sector for insufflation during surgeries and as a refrigerant in cryotherapy. The growing healthcare industry and medical research in the UK are contributing to this application’s expansion.
• Refrigeration and Cooling: CO2 is increasingly being used as an environmentally friendly refrigerant in cooling systems due to its low environmental impact compared to other refrigerants. This segment is growing in the wake of sustainability efforts across the globe.

Market Share by End-User Industry

• Industrial Sector: The industrial sector is one of the largest consumers of CO2, as it is used in various manufacturing processes such as welding, fire extinguishing, and as a propellant in aerosols.
• Healthcare Sector: The healthcare industry is increasingly adopting CO2 in procedures like laparoscopic surgeries, medical cryotherapy, and respiratory therapies. This trend is expected to grow as the demand for advanced medical treatments and technologies rises.
• Agricultural Sector: In agriculture, CO2 is utilized for enhancing plant growth in controlled environments, such as greenhouses. This application is gaining traction due to the global emphasis on sustainable farming and food security.

Market Dynamics and Trends

Key Drivers of Market Growth

• Rising Demand in the Food and Beverage Industry: The primary driver for the UK carbon dioxide market is the ever-growing demand in the food and beverage industry, particularly for the carbonation of drinks. The market is benefitting from the increased consumption of fizzy drinks and sparkling beverages, which rely on CO2 for carbonation.
• Advances in Carbon Capture and Storage (CCS): As part of the UK’s efforts to reduce greenhouse gas emissions, there is an increasing focus on carbon capture and storage (CCS) technologies. These innovations are expected to create a sustainable and reliable source of CO2, which could support the growth of the CO2 market while simultaneously addressing environmental concerns.
• Growing Demand in Medical and Healthcare Applications: The medical sector’s growing reliance on CO2 for surgical procedures and cryotherapy is fueling the market’s growth. CO2 is essential in several medical applications, especially in laparoscopic surgeries, where it is used for insufflation during minimally invasive procedures.
• Sustainability Focus in Cooling Applications: As part of global sustainability initiatives, there is an increasing focus on using eco-friendly refrigerants. CO2 is emerging as a favorable alternative to traditional refrigerants due to its lower environmental impact, driving its adoption in cooling and refrigeration applications.

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Emerging Trends in the Market

• Sustainable CO2 Production: With the global focus on sustainability and reducing emissions, the market for green CO2 (produced via renewable energy or captured from industrial processes) is growing. These technologies not only provide a reliable source of CO2 but also reduce the overall carbon footprint, aligning with the UK's environmental goals.
• Advances in CO2 Capture and Recycling: Several companies are developing CO2 recycling technologies that capture CO2 from industrial processes and convert it into useful products. This innovation is expected to support the market’s long-term growth, especially with increasing industrial demand.
• Use of CO2 in Enhanced Oil Recovery (EOR): In the oil and gas industry, CO2 is used in enhanced oil recovery techniques to extract oil from reservoirs. As the energy sector looks for more efficient and sustainable extraction methods, the demand for CO2 in EOR operations may rise.

Growth of the United Kingdom Carbon Dioxide Market

The UK carbon dioxide market is experiencing steady growth driven by increasing industrial and agricultural demands, the growth of the food and beverage industry, and an emphasis on environmentally friendly alternatives in refrigeration. Key factors contributing to the market’s growth include:

• Industrialization: As industries continue to grow, the need for CO2 in various applications, including manufacturing processes, fire extinguishing systems, and chemical production, is on the rise. This industrial growth ensures a steady demand for CO2 in the coming years.
• Urbanization: With urbanization driving more construction and infrastructure development, the demand for CO2-based technologies in cooling systems, building materials, and medical applications is also expected to rise.
• Regulatory Support for Sustainability: Government regulations encouraging the use of eco-friendly gases and reducing reliance on traditional refrigerants will lead to greater adoption of CO2-based solutions in sectors like refrigeration, cooling, and agriculture.

Market Opportunities and Challenges

Opportunities

• Growth in Agricultural CO2 Use: The growing demand for food and agriculture productivity is increasing the use of CO2 in controlled agricultural environments. CO2-enriched greenhouses help accelerate plant growth, providing opportunities for growth in the agricultural sector.
• Carbon Capture and Utilization (CCU): Companies that can successfully integrate CCU technologies into their operations will be able to reduce CO2 emissions and create a sustainable supply of CO2 for various applications, including beverage carbonation and industrial use.
• Sustainable Practices in the Food and Beverage Industry: As consumers demand more eco-conscious products, the food and beverage industry is under increasing pressure to adopt environmentally friendly practices. This presents an opportunity for CO2 suppliers to provide sustainable and green solutions for carbonation and other uses.

Challenges

• Supply Chain and Production Constraints: One of the key challenges facing the CO2 market in the UK is the fluctuation in supply due to production constraints. The reliance on natural gas-based processes to produce CO2 means that disruptions in the natural gas market can directly impact CO2 supply.
• Environmental Concerns: Despite its numerous applications, the production of CO2 and its role in greenhouse gas emissions raise environmental concerns. The market may face challenges related to the environmental impact of CO2 emissions from its production processes, especially with increasing scrutiny on carbon footprints.
• Alternative Gases: Competition from other gases, such as nitrogen and oxygen, used in some of the same applications as CO2, could pose a threat to the market. Additionally, emerging technologies may provide alternatives to CO2 in certain industries, affecting market demand.

Competitor Analysis

The United Kingdom carbon dioxide market is competitive, with several key players driving the growth and innovation within the industry. Some of the prominent companies in the UK carbon dioxide market include:

• Ensus UK Limited: Ensus is a leading producer of CO2 in the UK, primarily using renewable resources to supply the market. The company focuses on sustainable CO2 production for a variety of applications, including agriculture, food and beverage, and industrial uses.
• BioCarbonics Ltd.: Specializing in the production of high-purity CO2, BioCarbonics Ltd. provides CO2 for use in the food, beverage, and medical industries. The company is known for its sustainable practices and high-quality product offerings.
• Tata Chemicals Europe Limited: A subsidiary of Tata Chemicals, Tata Chemicals Europe manufactures and supplies CO2 for a range of industrial, agricultural, and food and beverage applications. The company is committed to providing eco-friendly.

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