United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market size reached a volume of 725.80 KMT in 2024. Driven by growing industrial demand across various sectors, including food and beverage, healthcare, and manufacturing, the market is projected to expand at a robust CAGR of 1.50% between 2025 and 2034, reaching a volume of 842.32 KMT by 2034.

Carbon dioxide (CO₂) is a versatile gas with a wide range of applications across various industries. From its use in carbonated beverages and food preservation to its role in enhanced oil recovery and as a cooling agent in fire suppression systems, CO₂ is integral to numerous processes. As industries look for sustainable and efficient solutions, the United Kingdom’s CO₂ market is poised for growth driven by both traditional and emerging applications.

Growth Drivers

The United Kingdom carbon dioxide market is supported by multiple factors that contribute to the gas's demand. One of the key growth drivers is the food and beverage industry, particularly in the production of carbonated drinks, beer, and carbonated soft drinks. CO₂ is a crucial component in the carbonation process, providing effervescence and enhancing the sensory experience of the consumer. The growing preference for sparkling water, carbonated beverages, and craft beer is expected to continue boosting demand for CO₂ in the UK market.

The food preservation and packaging industries also rely heavily on CO₂, as the gas is used in modified atmosphere packaging (MAP) to extend the shelf life of perishable goods. MAP helps maintain the quality of food products such as fruits, vegetables, and meat, while also reducing food waste. With the increasing emphasis on reducing food waste and enhancing food security, the demand for CO₂ in packaging solutions is likely to rise, further expanding the UK CO₂ market.

In addition to its role in food and beverage applications, CO₂ has become essential in the healthcare sector, particularly for medical purposes. CO₂ is used in medical applications such as insufflation during laparoscopic surgery and as a carrier gas for inhalation anaesthesia. As healthcare advancements continue to drive the need for medical procedures, the demand for CO₂ in the medical industry is anticipated to grow.

Furthermore, the industrial use of CO₂ in sectors such as manufacturing and oil and gas is contributing to the overall United Kingdom carbon dioxide market growth. CO₂ is used in enhanced oil recovery (EOR) processes, where it is injected into oil reservoirs to improve oil extraction rates. The rising demand for energy production and the ongoing development of technologies to increase oil recovery efficiency are likely to fuel demand for CO₂ in the coming years.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/united-kingdom-carbon-dioxide-market/requestsample

Market Trends

Several trends are influencing the United Kingdom carbon dioxide market, with a strong focus on sustainability, innovation, and regulatory changes. These trends are expected to shape the market's trajectory in the coming years.

1. Demand for Carbon Capture and Storage (CCS): The UK government has set ambitious climate goals, including achieving net-zero emissions by 2050. This objective has led to increased interest in carbon capture and storage (CCS) technologies, which can capture CO₂ from industrial processes and store it underground. The growth of CCS initiatives is expected to drive demand for CO₂ as a by-product and fuel innovation in the carbon dioxide sector. The implementation of CCS systems in large industrial plants will not only reduce the carbon footprint of these operations but also provide new opportunities for CO₂ utilisation.

2. Green Hydrogen and CO₂ Utilisation: The increasing focus on green hydrogen production, as part of the UK’s clean energy transition, presents a significant opportunity for CO₂ utilisation. Green hydrogen production involves the use of renewable electricity to split water molecules, creating hydrogen and oxygen. The use of CO₂ as a feedstock in certain hydrogen production methods, such as the hydrogenation of CO₂ into valuable chemicals, is expected to grow, making CO₂ a key component in the UK's energy transition. This presents a potential market expansion for CO₂ and positions it as a valuable resource in the future energy landscape.

3. Food and Beverage Innovation: The UK food and beverage industry continues to evolve, with increasing demand for functional and health-oriented products. Innovations such as carbonated functional beverages and alcohol-free carbonated drinks are gaining traction. CO₂ remains a crucial component in the production of these products, and the industry is expected to continue driving demand for CO₂, especially in the growing craft beer and non-alcoholic beverage markets. As consumer preferences shift toward healthier, low-sugar alternatives, the role of CO₂ in enhancing the sensory experience of these drinks will remain vital.

4. Sustainability and Waste Reduction: As part of its sustainability goals, the UK is focusing on reducing food waste and increasing the shelf life of products. CO₂ plays a significant role in this area, particularly in modified atmosphere packaging (MAP), which extends the shelf life of perishable goods. With the UK aiming to reduce food waste by 20% by 2025, the demand for CO₂ in packaging solutions is expected to grow, especially as retailers and manufacturers seek more sustainable methods of preserving and transporting fresh produce.

5. Emerging CO₂ Applications: While traditional CO₂ uses such as carbonation and industrial applications remain strong, there is growing interest in new and innovative applications of CO₂. One such area is the use of CO₂ in agricultural practices, where it is used to enhance plant growth in controlled environments such as greenhouses. As vertical farming and indoor agriculture continue to gain popularity, CO₂ will play a key role in improving crop yields and contributing to food security. Additionally, CO₂ is being explored in applications such as supercritical fluid extraction, which has potential in the production of high-quality essential oils, pharmaceuticals, and natural products.

United Kingdom Carbon Dioxide Market Segmentation

The market can be divided based on source, production and End use.

• 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

Challenges and Opportunities

Despite its positive growth outlook, the United Kingdom carbon dioxide market faces several challenges. The most notable challenge is the volatile nature of CO₂ production, as it is a by-product of various industrial processes, including ammonia production and ethanol fermentation. Supply disruptions, whether due to changes in industrial output or geopolitical factors, can lead to price fluctuations and supply shortages. Additionally, the shift toward sustainability and decarbonisation could result in higher costs for CO₂ production as industries adopt greener technologies.

However, these challenges also present opportunities. As industries embrace decarbonisation and invest in CCS technologies, CO₂ can be captured and repurposed for various beneficial applications, creating new revenue streams and market avenues. Additionally, the growing focus on sustainability and green hydrogen production offers opportunities for CO₂ to be integrated into emerging clean energy solutions, further expanding its role in the UK economy.