United Kingdom Carbon Dioxide Market Analysis, Size, Share & Forecast | 2034
United Kingdom Carbon Dioxide Market Outlook
The United Kingdom carbon dioxide market size reached a volume of 725.80 KMT in 2024. Driven by the increasing demand for CO2 across diverse industries such as food and beverages, healthcare, and energy, the market is expected to grow at a robust CAGR of 1.50% between 2025 and 2034, ultimately reaching a volume of 842.32 KMT by 2034.
Carbon dioxide, a colourless and odourless gas, plays a crucial role in various sectors due to its versatile properties. It is widely used in the production of carbonated beverages, food preservation, fire extinguishing systems, and medical applications, among others. Additionally, CO2 has gained prominence in emerging fields such as enhanced oil recovery and carbon capture technologies, expanding its application beyond traditional uses. The growing awareness of environmental concerns and increasing regulatory pressure on industries to adopt sustainable practices are some of the key factors driving the demand for CO2-based solutions.
The United Kingdom, a significant player in the global CO2 market, is witnessing an uptick in CO2 consumption as businesses and industries adapt to changing market conditions and environmental challenges. The demand for CO2 in the food and beverage industry remains strong, bolstered by the continued popularity of carbonated drinks, while industrial sectors are embracing CO2 for its role in sustainable processes, further contributing to the market’s growth.
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Key Market Drivers
Demand in the Food and Beverage Industry: The United Kingdom carbon dioxide market continues to be one of the largest consumers of carbon dioxide. CO2 is essential for carbonating soft drinks, beer, and other beverages. With the increasing popularity of carbonated beverages in the UK, the demand for CO2 is expected to continue its upward trajectory. Furthermore, CO2 is widely used in food preservation, specifically in the packaging process, to extend the shelf life of perishable products. This widespread use of CO2 in packaging helps prevent spoilage by reducing the growth of bacteria, contributing to food safety and convenience.
The rising consumption of sparkling water and soda, alongside the growing trend of on-the-go food consumption, has also supported the demand for CO2 in the food and beverage sector. As consumers increasingly seek convenience, the demand for CO2 for carbonation and packaging will continue to fuel market growth in the coming years.
Healthcare and Medical Applications: In the healthcare sector, carbon dioxide plays an important role in various medical procedures. CO2 is widely used for insufflation during minimally invasive surgeries, such as laparoscopy, as it helps inflate the abdomen to create better visibility for surgeons. Additionally, CO2 is used in medical gas mixtures for respiratory therapy, aiding in the treatment of conditions like chronic obstructive pulmonary disease (COPD).
The growing demand for medical gases and advancements in surgical technologies are expected to drive further growth in CO2 consumption within the healthcare sector. The increasing prevalence of chronic diseases and the rising demand for advanced healthcare services will further fuel the need for CO2, contributing to the market’s expansion.
Sustainability and Carbon Capture Initiatives: The ongoing global shift toward sustainability and efforts to mitigate climate change are also contributing to the demand for United Kingdom carbon dioxide market. In particular, the adoption of carbon capture and storage (CCS) technologies, which aim to capture CO2 emissions from industrial sources and store them underground, is gaining momentum. These initiatives are part of the UK’s strategy to meet its net-zero emissions target by 2050.
As industries seek to reduce their carbon footprints and comply with increasingly stringent environmental regulations, the demand for CO2 reduction and management technologies is expected to rise. The growing focus on CCS and other environmentally-friendly practices is creating new market opportunities, where CO2 plays a central role in supporting carbon sequestration processes and sustainable practices.
Rising Use of CO2 in Enhanced Oil Recovery: Enhanced oil recovery (EOR) is another key application for CO2 in the United Kingdom. EOR techniques use CO2 to increase the extraction of crude oil from underground reservoirs, offering a more efficient and sustainable alternative to conventional oil recovery methods. The United Kingdom’s North Sea oil fields have been the site of several CO2 injection projects, and as the demand for energy remains high, the adoption of CO2 for EOR is expected to expand in the coming years.
The oil and gas industry’s increasing reliance on CO2 for EOR will continue to support the UK CO2 market, particularly as companies seek to maximise oil extraction from mature fields.
Key Market Trends
Technological Advancements in CO2 Capture: Technological advancements in CO2 capture and storage (CCS) systems are significantly influencing the market. Several large-scale projects are being developed to capture and store CO2 emissions from industrial processes, power generation, and other sources. These technologies are integral to achieving the UK’s long-term sustainability and carbon neutrality goals. As carbon capture systems become more efficient and cost-effective, they are expected to drive demand for CO2, supporting market growth over the forecast period.
Additionally, the development of CO2 conversion technologies, which convert CO2 into useful products such as fuels, chemicals, and building materials, is opening up new avenues for CO2 utilization. This trend is expected to lead to a more circular carbon economy, where CO2 is not only captured but also recycled and used for industrial applications.
Growth of the Carbonated Beverage Market: The increasing preference for carbonated beverages, including soda, sparkling water, and other effervescent drinks, is driving the demand for United Kingdom carbon dioxide market. The growing health-consciousness among consumers has led to a rise in the popularity of low-calorie and sugar-free carbonated drinks, further boosting the consumption of CO2 in the beverage industry.
The market is also witnessing an increasing number of craft breweries and microbreweries, which often rely on CO2 for beer carbonation. These trends are expected to propel the demand for CO2 in the food and beverage sector, reinforcing its position as a critical industrial gas.
Fluctuating Supply and Demand for CO2: Despite the growing demand for CO2, the supply of CO2 in the United Kingdom faces certain challenges, particularly due to its reliance on natural gas plants, which have become less reliable in recent years. The supply of CO2 is often tied to the production of ammonia and hydrogen in industrial facilities, both of which have seen fluctuations in output, particularly during periods of economic uncertainty.
These supply-demand imbalances have led to periodic shortages of CO2, especially during peak periods such as summer months when demand from the food and beverage industry is highest. As such, the UK CO2 market is likely to experience supply chain disruptions, driving the need for better infrastructure and supply management solutions to ensure consistent availability.
United Kingdom Carbon Dioxide Market Market Segmentation
The market can be divided based on source, production and 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 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
Future Outlook
The United Kingdom carbon dioxide market is expected to grow steadily over the forecast period, driven by the continued demand from key industries, the adoption of carbon capture technologies, and the rising focus on sustainability. The increasing use of CO2 in enhanced oil recovery, medical applications, and food preservation are set to remain important contributors to market growth.
The ongoing challenges related to CO2 supply and the emergence of new technological solutions will shape the future dynamics of the market. As the UK continues to implement stricter environmental regulations and industry shifts toward carbon neutrality, the demand for CO2 management and utilization technologies is anticipated to expand, presenting significant opportunities for market participants.
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