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

The United Kingdom carbon dioxide (CO2) market is a key industry supporting multiple sectors, including food and beverage, healthcare, agriculture, and manufacturing. As one of the most commonly used industrial gases, CO2 plays a vital role in food preservation, carbonating drinks, and a wide range of industrial applications such as welding, refrigeration, and even fire suppression. The UK’s carbon dioxide market was valued at 725.8 KMT (kilotonnes) in 2024, and with an estimated compound annual growth rate (CAGR) of 1.5%, it is forecasted to grow to 840.5 KMT by 2034. This growth is attributed to both rising demand across various industries and technological advancements in CO2 production and utilization.

United Kingdom Carbon Dioxide Market Size

As of 2024, the UK carbon dioxide market stands at 725.8 KMT, making it one of the most significant CO2 markets in Europe. The food and beverage industry remains the largest consumer of CO2, primarily for carbonating soft drinks and preserving food. Other key sectors such as healthcare, industrial applications, and agriculture also contribute significantly to market demand.

Healthcare, where CO2 is used in medical treatments, respiratory care, and surgeries, is an essential segment in the market. The industrial sector, especially applications like welding and fire suppression, also generates substantial demand. The growing use of CO2 in agricultural practices, particularly in enhancing crop yields and production efficiency, adds another layer of market growth.

United Kingdom Carbon Dioxide Market Trends

Several key trends are influencing the UK carbon dioxide market:

Sustainability and Carbon Capture: With the UK’s ambitious goals for net-zero emissions by 2050, there is a growing emphasis on sustainability in CO2 production. Carbon capture and utilization (CCU) technologies are becoming increasingly important in reducing the carbon footprint of CO2 production, and are expected to support future market growth.

Emerging Applications of CO2: Beyond traditional uses, CO2 is increasingly being explored in new industries such as agriculture and renewable energy production. The agricultural sector, in particular, is adopting CO2 to enhance crop growth in controlled environments, which will continue to drive market expansion.

Technological Innovation: Advancements in CO2 production technologies, including methods that utilize renewable energy sources, are making CO2 production more sustainable and cost-effective. Innovations in carbon capture are also helping industries repurpose CO2, further expanding its applications and demand.

Regulatory Pressure for Sustainable Practices: The UK government’s environmental regulations are encouraging industries to adopt more sustainable practices. This regulatory environment is driving a rise in demand for CO2 produced through greener methods, such as those powered by renewable energy or derived from carbon capture technologies.

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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 CO2 market is expected to experience steady growth in the coming decade. The market is forecast to grow at a CAGR of 1.5% between 2025 and 2034. This growth will be fueled by several factors:

Consistent Demand from Key Sectors: The food and beverage industry will remain a dominant driver of market growth, with continuous demand for CO2 for carbonation and food preservation. Similarly, healthcare and industrial applications are also expected to contribute to the market’s growth trajectory.

Sustainability Efforts: The UK’s commitment to reducing carbon emissions is spurring demand for CO2 derived from sustainable and low-carbon sources. As industries work towards achieving net-zero emissions, sustainable CO2 production methods such as carbon capture utilization are expected to gain traction.

Technological Advancements: Continued innovations in CO2 production, storage, and distribution technologies will help optimize the supply chain and reduce production costs. This is expected to make CO2 more affordable and accessible to industries, leading to increased demand.

Expansion into New Applications: As CO2 is explored in new sectors like agriculture, renewable energy, and biofuel production, new growth opportunities will emerge, contributing to the market’s expansion.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is characterized by strong demand from both traditional sectors and emerging industries. The food and beverage sector continues to be the dominant consumer of CO2, with applications in carbonation, food preservation, and packaging. Healthcare is another significant consumer, utilizing CO2 for medical treatments, surgical procedures, and respiratory care.

Industrial sectors like welding, refrigeration, and fire suppression also rely heavily on CO2. Furthermore, as more companies embrace sustainability, the demand for CO2 produced through environmentally friendly methods is growing. Technologies like carbon capture and renewable energy-powered CO2 production are becoming increasingly relevant.

The increasing focus on environmental sustainability and carbon neutrality is also shaping the market’s landscape. With industries under pressure to reduce their carbon footprint, the demand for low-carbon CO2 will rise, and companies that invest in sustainable CO2 production will have a competitive edge.

United Kingdom Carbon Dioxide Market Forecast

The UK carbon dioxide market is expected to grow steadily between 2025 and 2034, reaching a volume of 840.5 KMT by 2034. This growth will be driven by:

Increased Demand Across Sectors: Continued demand from the food and beverage industry, as well as expanding use in healthcare, agriculture, and industry, will support market growth. CO2’s versatility in applications is a key driver behind this demand.

Sustainability and Technological Advances: As industries adopt sustainable practices and technologies such as carbon capture utilization, demand for CO2 will increase. This will drive the growth of companies that focus on sustainable CO2 production.

Government Initiatives and Regulations: The UK government’s environmental policies and commitments to net-zero emissions will further boost demand for CO2 produced using green technologies. The push for reduced emissions and cleaner industrial practices will make low-carbon CO2 more desirable.

Innovation in Emerging Markets: The expanding use of CO2 in agriculture, renewable energy, and other emerging sectors will open new avenues for market expansion. The versatility of CO2 in these sectors suggests continued growth potential.

Competitor Analysis

The United Kingdom CO2 market is highly competitive, with several key players operating across the sector. Major companies include:

Ensus UK Limited: Ensus UK is a leader in sustainable CO2 production, utilizing bio-based and renewable methods to supply CO2 for various industries, including food and beverage, healthcare, and industrial applications.

BioCarbonics Ltd.: Specializing in the production of CO2 from renewable sources, BioCarbonics Ltd. supplies CO2 for industries like food and beverage and healthcare while prioritizing sustainability in its operations.

Tata Chemicals Europe Limited: Tata Chemicals is a significant player in the UK CO2 market, with a focus on reducing the environmental impact of CO2 production. The company provides CO2 to various industries, including agriculture and manufacturing.

Yara International ASA: Known for its expertise in agriculture, Yara International is also a key supplier of CO2, leveraging its knowledge in sustainable practices to meet growing demand for CO2 in the agricultural sector.

Air Products PLC: A major player in the industrial gases sector, Air Products supplies CO2 for food and beverage carbonation, industrial applications, and healthcare. The company has a strong focus on sustainable CO2 production.

BOC Limited (Linde): BOC, a subsidiary of Linde, is one of the largest suppliers of CO2 in the UK. The company supplies CO2 to multiple sectors, including food, beverage, healthcare, and manufacturing, while exploring low-carbon CO2 production methods.

Air Liquide UK Ltd: Air Liquide is a leading producer of industrial gases, including CO2. The company focuses on providing sustainable CO2 solutions for industries like food, beverage, and healthcare.

Nippon Gases: Nippon Gases is a significant player in the UK market, providing CO2 for industrial uses such as welding and refrigeration, as well as for food preservation and medical applications.

Progases (UK) Ltd: Specializing in CO2 supply for the food and beverage industry, Progases UK is committed to providing high-quality CO2 with a focus on sustainability and environmental responsibility.

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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Author: Emily jack