United Kingdom Carbon Dioxide Market Size, Share, Trends and Forecast | 2034

United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market size is expected to see steady growth over the forecast period. According to a report by Expert Market Research (EMR), the UK carbon dioxide market reached a volume of 725.80 KMT in 2024. The market is projected to expand at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, potentially reaching a volume of 842.32 KMT by 2034. This growth is primarily driven by increasing demand across various industries, including food and beverage, healthcare, and manufacturing, as well as the growing emphasis on sustainability and carbon capture technologies.

Carbon dioxide (CO₂) is a colorless, odorless gas that plays a vital role in numerous applications, from carbonated beverages and fire suppression systems to enhanced oil recovery and the production of dry ice. It is also used in various chemical processes and medical applications, particularly for respiratory therapy and in the treatment of certain conditions. With the rise of environmental concerns and the increasing focus on decarbonization efforts, the role of CO₂ in industrial and commercial applications is expanding, further driving market growth.

Key Drivers of Growth

The food and beverage industry is one of the largest consumers of United Kingdom carbon dioxide market, particularly in the production of carbonated beverages. CO₂ is used in the carbonation process, giving soft drinks, sparkling water, and beer their characteristic fizz. The growing demand for carbonated drinks, especially among younger consumers, continues to fuel the demand for CO₂ in this sector. Additionally, the increasing popularity of bottled water and the expansion of the non-alcoholic beverage segment are expected to contribute significantly to the market’s growth.

In the healthcare sector, carbon dioxide is used in a variety of medical applications, such as in respiratory treatments and as a therapeutic gas for minimally invasive surgeries, including laparoscopy. The UK’s aging population and the rising prevalence of respiratory diseases are further propelling the demand for CO₂ in medical applications. As healthcare technologies continue to advance, new applications for carbon dioxide are likely to emerge, thereby enhancing the overall market growth.

The industrial sector also plays a crucial role in the demand for carbon dioxide. CO₂ is used in a wide array of industrial processes, including the production of chemicals, food packaging, and welding applications. As industries continue to focus on process optimization and cost reduction, carbon dioxide remains an essential component in many applications. Additionally, the rise of the green economy and the push for more sustainable manufacturing practices are driving investments in CO₂ capture and reuse technologies.

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Environmental Impact and Carbon Capture Technologies

As part of the UK’s commitment to reducing greenhouse gas emissions and achieving net-zero emissions by 2050, there is a growing emphasis on carbon capture, utilization, and storage (CCUS) technologies. Carbon dioxide, as a byproduct of various industrial processes, is now being captured and stored, preventing it from entering the atmosphere and contributing to climate change. This has led to a shift toward a circular economy model, where CO₂ is not only captured but also repurposed for use in other industries, such as agriculture and energy production.

In the UK, government policies and regulations are promoting the development of CCUS technologies, which are helping to drive innovation in the carbon dioxide market. The UK government has set ambitious targets for the reduction of carbon emissions, and as such, industries are increasingly exploring ways to integrate CO₂ capture technologies into their operations. Moreover, the UK has been investing in large-scale CCUS projects that aim to capture millions of tons of CO₂ annually, with the potential to make significant contributions to the reduction of carbon emissions in the country.

In addition to industrial CCUS projects, the development of direct air capture (DAC) technologies is gaining traction. DAC involves the removal of CO₂ directly from the air and its subsequent utilization or storage. Although still in the early stages of development, DAC holds significant promise in helping the UK meet its net-zero emissions targets. As these technologies continue to evolve, their integration into the United Kingdom carbon dioxide market could lead to a further reduction in carbon emissions and an increase in the demand for CO₂ in industrial applications.

United Kingdom Carbon Dioxide Market 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

While the United Kingdom carbon dioxide market holds substantial growth potential, it also faces several challenges. One of the main challenges is the limited availability of natural CO₂ sources, which could constrain supply in the long term. Moreover, the high costs associated with carbon capture technologies may pose a barrier to entry for smaller companies. However, these challenges present opportunities for innovation, particularly in the development of alternative production methods and the scaling up of CCUS technologies.

The growing emphasis on sustainability and environmental stewardship presents significant opportunities for the United Kingdom carbon dioxide market. As industries increasingly focus on reducing their carbon footprint, the demand for CO₂ in applications such as food preservation, medical treatments, and enhanced oil recovery is expected to rise. Furthermore, the integration of recycled CO₂ into industrial processes holds considerable promise for creating a more sustainable and circular economy.

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