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

The United Kingdom’s carbon dioxide (CO2) market has seen steady growth, with a volume of 725.8 KMT in 2024. Looking ahead, this market is projected to expand at a compound annual growth rate (CAGR) of 1.5% between 2025 and 2034, reaching a total volume of 840.5 KMT by 2034. This growth is being driven by various factors, including the continued demand for CO2 in industries such as food and beverage, healthcare, oil and gas, and chemicals. In this blog, we will explore the United Kingdom carbon dioxide market’s overview, size, trends, growth factors, market analysis, and forecasts for the future.

United Kingdom Carbon Dioxide Market Overview

The United Kingdom’s carbon dioxide market is an essential component of the country’s industrial and healthcare infrastructure. CO2 is used in numerous applications, including food preservation (carbonating beverages, food packaging), healthcare (medical gas for surgeries), and enhanced oil recovery in the oil and gas industry. As a naturally occurring gas, carbon dioxide plays a critical role in maintaining the operational efficiency of these industries.

In addition to traditional industrial uses, the UK market is also exploring the potential for carbon capture and storage (CCS) technologies, which aim to reduce CO2 emissions while still utilizing the gas for productive purposes. This focus on sustainability and the reduction of carbon emissions is helping to reshape the market and encourage investment in cleaner technologies.

United Kingdom Carbon Dioxide Market Size

In 2024, the United Kingdom carbon dioxide market reached a volume of 725.8 KMT. This reflects a stable demand for CO2 across its primary applications, such as the food and beverage industry, medical usage, and industrial processes. Despite the UK’s push for decarbonization, the demand for CO2 in these sectors remains strong, supporting a consistent market size.

Over the forecast period (2025-2034), the market is expected to grow at a CAGR of 1.5%, reaching an estimated volume of 840.5 KMT by 2034. This gradual growth is attributed to the expanding demand for CO2 in sectors such as food production, healthcare, and chemical manufacturing, as well as the implementation of new technologies such as carbon capture and utilization (CCU).

United Kingdom Carbon Dioxide Market Trends

Several key trends are shaping the trajectory of the carbon dioxide market in the United Kingdom:

Increased Use in Food and Beverage Industry: The food and beverage sector remains one of the largest consumers of CO2, primarily for carbonating soft drinks and preserving food products. As the demand for carbonated beverages and packaged foods continues to rise, the need for CO2 is expected to remain strong.

Carbon Capture and Storage (CCS) Technologies: With the UK’s commitment to reducing carbon emissions, CCS technologies are becoming increasingly relevant in the CO2 market. These technologies capture CO2 from industrial processes and store it underground, mitigating the environmental impact of CO2 production while ensuring a stable supply for industrial uses.

Healthcare Sector Demand: Carbon dioxide has applications in the medical field, particularly in surgical procedures like laparoscopy, where it is used as an insufflation gas. With the UK’s growing healthcare sector and increasing demand for advanced medical procedures, CO2 demand in healthcare is expected to rise.

Sustainability Focus: The UK government’s Green Industrial Revolution and various sustainability initiatives are pushing the market to adopt cleaner technologies. This includes CO2 capture from industrial emissions, which can help reduce the reliance on traditional CO2 production methods.

Technological Innovation: As new technologies are developed, the CO2 market is experiencing shifts in how CO2 is produced, captured, and utilized. Innovations such as biogas-derived CO2 and improved storage technologies are contributing to the market’s long-term sustainability.

Get a Free Sample Report with Table of Contents

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 United Kingdom carbon dioxide market is expected to experience steady growth over the next decade. Factors driving this growth include:

Sustainability and Environmental Regulations: As the UK government places increasing emphasis on reducing carbon emissions, businesses across various industries are adopting CO2 capture and utilization (CCU) technologies. The growth of CCS and CO2 recycling initiatives will contribute significantly to the market’s expansion.

Industrial Applications: The continued expansion of industries that rely on CO2, such as food and beverage production, chemicals, and oil and gas, will ensure steady demand. The increasing adoption of CO2 in medical applications, such as surgeries, also supports market growth.

Increasing Demand for Carbonated Beverages: The global rise in demand for carbonated drinks and packaged food products will lead to an increased need for CO2, particularly in the food and beverage sector. This trend is expected to continue in the UK, driving market growth.

Technological Advancements: Ongoing technological innovations, including the development of more efficient carbon capture systems, will help stabilize CO2 supply while meeting increasing demand. These innovations will also drive demand in sectors focused on carbon management.

United Kingdom Carbon Dioxide Market Analysis

The United Kingdom carbon dioxide market is expected to experience stable and moderate growth, driven by demand in sectors such as food and beverage, oil and gas, and healthcare. However, the market is also subject to challenges, including regulatory pressures, environmental concerns, and the need for companies to adopt more sustainable production methods.

Several key players dominate the UK CO2 market, providing industrial gases and CO2 capture solutions. These companies are focusing on improving production processes, reducing emissions, and enhancing supply chain efficiencies. The adoption of cloud-based platforms for tracking CO2 usage and emissions is also becoming increasingly prevalent, offering real-time data for improved decision-making.

The UK’s growing commitment to sustainability is driving innovation in the carbon dioxide market. Businesses are increasingly turning to CCS and CCU technologies to meet environmental regulations while securing long-term access to CO2 for industrial purposes.

United Kingdom Carbon Dioxide Market Forecast

The UK carbon dioxide market is forecast to reach 840.5 KMT by 2034, growing at a CAGR of 1.5% from 2025 to 2034. Several factors will influence this growth:

Continued Demand in Industrial Sectors: Sectors such as food and beverage, healthcare, and chemicals will continue to account for the majority of CO2 consumption in the UK. As these industries grow, they will drive the demand for CO2.

Investment in CCS Technologies: The UK’s focus on sustainability and emission reduction will stimulate further investment in CCS technologies, allowing for the capture and storage of CO2 while ensuring that it remains available for industrial use. This will mitigate the environmental impact of CO2 production.

Technological Innovations: The market is expected to benefit from ongoing innovations in CO2 production and utilization technologies. From CO2 capture from biogas to enhanced storage techniques, these advancements will help maintain a sustainable and reliable CO2 supply.

Regulatory Changes: The evolving regulatory landscape in the UK, driven by sustainability goals and carbon reduction targets, will encourage businesses to adopt cleaner CO2 production methods and explore innovative applications for the gas.

Competitor Analysis in the United Kingdom Carbon Dioxide Market

BioCarbonics Ltd.: BioCarbonics is a leading provider of CO2 for the food and beverage industry in the UK. The company focuses on producing CO2 for carbonating beverages and food preservation, helping meet growing demand in these sectors.

Tata Chemicals Europe Limited: Tata Chemicals is a global player with a strong presence in the UK market. They produce and distribute CO2 for a range of applications, from food and beverage carbonation to industrial manufacturing processes.

Yara International ASA: Yara International produces industrial gases, including CO2, for a variety of applications. Their commitment to sustainability and carbon management plays a significant role in shaping the UK CO2 market.

Air Products PLC: Air Products is one of the largest suppliers of industrial gases in the UK. The company provides CO2 for food and beverage production, medical applications, and industrial processes, ensuring consistent supply and quality.

BOC Limited (Linde): BOC, a subsidiary of Linde, is a major player in the UK CO2 market. The company provides CO2 for applications in food and beverage, healthcare, and manufacturing, with an emphasis on sustainability and energy-efficient production.

Air Liquide UK Ltd.: Air Liquide is a global leader in the industrial gases market, supplying CO2 for various sectors, including healthcare and food processing. The company is at the forefront of developing sustainable CO2 production methods.

Nippon Gases: Nippon Gases supplies CO2 to various industries in the UK, focusing on both industrial and medical applications. The company also invests in sustainable CO2 production methods, aligning with rgulatory trends.

Others: The market also includes other regional and international suppliers, contributing to CO2 production, distribution, and innovation across various sectors in the UK.

Media Contact: