The United Kingdom carbon dioxide market is a vital segment of the industrial gases sector, driven by demand across a range of industries such as food and beverage, healthcare, oil and gas, and manufacturing. As of 2024, the United Kingdom carbon dioxide market reached a volume of 725.8 KMT (kilotonnes), and it is projected to experience a Compound Annual Growth Rate (CAGR) of 1.5% from 2025 to 2034. By 2034, the market is expected to reach a volume of 840.5 KMT.

This article provides an in-depth analysis of the United Kingdom carbon dioxide market, focusing on key trends, market share, dynamics, opportunities, and challenges. Additionally, we will explore the competitive landscape to understand the positioning of various players in the market. By the end of this article, you will have a comprehensive understanding of the United Kingdom carbon dioxide market’s growth potential and challenges.

United Kingdom Carbon Dioxide Market Outlook

The United Kingdom carbon dioxide market has been witnessing consistent growth, primarily driven by the increasing demand in the food and beverage industry, the oil and gas sector, and healthcare applications. The United Kingdom’s commitment to carbon reduction and sustainable practices plays a crucial role in shaping the market's future. As of 2024, the carbon dioxide market in the UK stands at 725.8 KMT, reflecting both the industrial demand and the gradual shift toward sustainable technologies.

The market outlook from 2025 to 2034 is positive, with an estimated CAGR of 1.5%. This slow but steady growth trajectory is expected to be driven by a combination of factors, including:

Increased demand from industries such as food and beverage (especially carbonated drinks) and oil and gas.

Sustainability initiatives aimed at reducing carbon emissions and enhancing carbon capture technologies.

Technological advancements in CO2 production, storage, and utilization methods.

The United Kingdom's focus on achieving its ambitious climate goals by 2050, including carbon neutrality, is likely to create a demand for innovative CO2 technologies, such as carbon capture and utilization (CCU). These trends suggest the carbon dioxide market will continue to evolve, with a growing emphasis on sustainable practices and a circular carbon economy.

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United Kingdom Carbon Dioxide Market Share & Trends

Market Share by Industry

The United Kingdom carbon dioxide market is divided into several application segments, with key players from the food and beverage sector, healthcare, oil and gas, and manufacturing industries being the major consumers. As of 2024, the distribution of market share among these sectors is as follows:

Food and Beverage Industry (Major Share)
The food and beverage industry accounts for the largest share of CO2 consumption in the United Kingdom. CO2 is widely used for carbonating beverages, extending the shelf life of perishable goods, and in packaging applications. With the increasing demand for carbonated beverages, including soft drinks, sparkling water, and alcoholic beverages like beer, the food and beverage sector will remain a dominant force in the market. Additionally, advancements in packaging, where CO2 is used to preserve freshness, are likely to support this trend further.

Oil and Gas Industry (Growing Share)
The oil and gas sector is another critical contributor to the carbon dioxide market. CO2 is employed in enhanced oil recovery (EOR) methods to increase the extraction of oil from mature reservoirs. The growing demand for energy, particularly in industrialized countries, will continue to fuel the oil and gas industry’s demand for CO2 in EOR applications.

Healthcare Sector (Emerging Demand)
The healthcare sector’s demand for CO2 has been increasing due to its use in medical procedures such as insufflation during laparoscopic surgeries. As the UK’s healthcare system continues to modernize and evolve, demand for CO2 in medical applications is expected to grow, presenting a significant opportunity for market expansion.

Industrial Applications
CO2 plays a vital role in industries such as welding, metalworking, and fire suppression systems. Although not as large as the food and beverage industry, industrial applications represent a steady demand segment for CO2.

Key Trends in the United Kingdom Carbon Dioxide Market

Sustainability Focus and Carbon Reduction
There is an increasing emphasis on sustainability and reducing CO2 emissions. The UK government has introduced various regulations to reduce the carbon footprint of industries. Carbon capture and storage (CCS) technologies are gaining traction, and businesses are investing in innovations to capture CO2 emissions and either store them or use them for industrial purposes. This trend is expected to boost CO2 demand, as industries seek solutions to mitigate their environmental impact.

Demand for Low-Emission Refrigerants
The global phase-out of high-GWP refrigerants, in line with the Kigali Amendment to the Montreal Protocol, has driven the adoption of CO2-based refrigeration systems. In sectors like retail and food storage, the use of CO2 as a refrigerant is gaining popularity due to its low environmental impact and energy efficiency.

Carbonated Beverages and Convenience Foods
As the demand for carbonated beverages continues to rise, driven by a shift in consumer preferences towards energy drinks and sparkling waters, the food and beverage industry’s need for CO2 will continue to increase. Moreover, the increasing demand for convenience foods and packaged goods further amplifies this trend.

Technological Innovations in CO2 Utilization
Technological advancements in carbon dioxide utilization are transforming the market. Companies are increasingly turning CO2 into valuable products such as synthetic fuels, chemicals, and building materials. These innovations present new revenue streams for industries and help to reduce CO2 emissions.

United Kingdom Carbon Dioxide Market Dynamics & Trends

Key Drivers of Market Dynamics

Economic Growth and Industrial Development
As the United Kingdom continues to grow economically, industries such as food production, manufacturing, and oil extraction expand. This increased industrial activity creates a demand for CO2 across several sectors, including food processing, beverages, oil extraction, and medical applications.

Environmental Regulations and Carbon Pricing
The United Kingdom's aggressive environmental targets, including its pledge to become carbon-neutral by 2050, create strong incentives for CO2 capture and utilization. Policies such as carbon taxes and emission reduction targets push industries to adopt technologies that capture and utilize CO2, thus fueling demand in the market.

Innovation in Carbon Capture and Utilization (CCU)
The development of advanced carbon capture and utilization technologies is a critical factor that influences the market dynamics. By converting captured CO2 into valuable products such as biofuels, chemicals, and fertilizers, industries can reduce their environmental footprint while maintaining profitability.

Challenges Facing the Market

Price Volatility of CO2
One of the challenges in the carbon dioxide market is the volatility of CO2 prices. Factors such as supply disruptions, changes in raw material costs, and the economic conditions of key industries can cause fluctuations in CO2 prices. These price variations can impact the profitability of businesses in sectors that rely heavily on CO2.

Supply Chain and Infrastructure Limitations
The infrastructure required to transport, store, and deliver CO2 can be challenging, especially in remote or industrial areas. The cost of expanding and maintaining CO2 transportation infrastructure could be a barrier to further market expansion.

Technological and Capital Investment
The development and implementation of new CO2 capture technologies require significant capital investment. For businesses to keep up with regulatory changes and sustainability demands, they need to invest in upgrading their infrastructure and technologies, which may be a challenge for smaller companies.

United Kingdom Carbon Dioxide Market Opportunities and Challenges

Opportunities in the Market

Expansion of Carbon Capture and Utilization (CCU) Technologies
The United Kingdom has significant opportunities in the development of CO2 capture and utilization technologies. These technologies allow for the conversion of CO2 into useful products such as synthetic fuels, plastics, and chemicals. With the government’s focus on carbon neutrality, companies developing these technologies are well-positioned to capitalize on government incentives and the increasing market demand for sustainable solutions.

Growing Healthcare Applications
The increasing reliance on minimally invasive surgical techniques, which use CO2 for insufflation, offers significant growth potential for the CO2 market. The UK healthcare sector’s demand for CO2 is expected to grow as the adoption of laparoscopic procedures continues to rise.

Sustainability in Refrigeration
With the global move toward low-GWP refrigerants, CO2-based refrigeration systems present a viable alternative. The demand for CO2 in refrigeration applications across various industries, including food preservation and cold storage, presents new opportunities for growth in the market.

Challenges in the Market

Regulatory and Compliance Costs
The evolving regulatory landscape surrounding CO2 emissions and the adoption of carbon capture technologies can be costly for businesses. Companies may need to invest in new equipment, processes, and compliance measures to meet the stricter environmental guidelines.

Infrastructure Development Costs
Expanding and upgrading the infrastructure required for CO2 capture, transportation, and storage poses a significant cost challenge. Businesses in the market may struggle with financing these infrastructure upgrades, which could limit their ability to scale effectively.

Competitor Analysis 

Several key players dominate the carbon dioxide market in the United Kingdom. These include both multinational corporations and specialized companies focused on CO2 production and supply.

BOC Limited (Linde): A subsidiary of Linde, BOC offers industrial gases and related equipment, serving sectors like healthcare, manufacturing, and chemicals, with a strong presence in the UK and Ireland.

Air Liquide UK Ltd: A part of the global Air Liquide Group, this company specializes in industrial gases and services for industries such as healthcare, energy, and chemicals in the UK.

Nippon Gases: A leading supplier of industrial gases in the UK, part of the Nippon Sanso Holdings Corporation, serving industries like healthcare, manufacturing, and food processing.

Progases (UK) Ltd: A UK-based supplier of industrial and specialty gases, offering solutions for a wide range of industries including food, healthcare, and manufacturing.

Others: Includes various regional and smaller players in the industrial gases market, each offering niche services and specialized solutions for different industries.

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