United Kingdom Carbon Dioxide Market Outlook
According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size attained a volume of 725.80 KMT in 2024. Aided by the growing applications of carbon dioxide across various industries and the increasing demand for sustainable industrial practices, the market is projected to further grow at a CAGR of 1.50% between 2025 and 2034, reaching a volume of 842.32 KMT by 2034.
Carbon dioxide (CO₂) is a versatile gas widely used in industries such as food and beverage, healthcare, agriculture, and manufacturing. It serves critical purposes, including carbonation, cooling, and pH control, and plays a vital role in industrial and scientific processes. The United Kingdom's robust industrial base, combined with rising awareness of environmental concerns, has led to the adoption of advanced technologies to manage carbon dioxide sustainably and enhance its applications.
The increasing demand for CO₂ in the food and beverage industry is driving the United Kingdom carbon dioxide market growth. Carbon dioxide is extensively utilised in carbonated drinks, food preservation, and modified atmosphere packaging (MAP), which prolongs the shelf life of perishable goods. With the rising consumption of convenience foods and beverages, especially among urban populations, the demand for carbon dioxide in this sector is expected to witness significant growth over the forecast period.
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Key Market Drivers
One of the primary drivers of the United Kingdom carbon dioxide market is the growing focus on sustainable industrial practices. As industries seek to reduce their environmental impact, carbon capture and utilisation (CCU) technologies have gained prominence. These technologies allow industries to capture carbon dioxide emissions and repurpose them for various applications, thus reducing greenhouse gas emissions. The United Kingdom's commitment to achieving net-zero emissions by 2050 has further encouraged investments in carbon capture and storage (CCS) and CCU projects, boosting the carbon dioxide market.
In the healthcare industry, carbon dioxide plays a critical role in surgeries, medical imaging, and laboratory applications. It is used in minimally invasive surgeries as an insufflation gas to create space within the body, enhancing the precision and safety of procedures. With advancements in medical technology and the rising demand for improved healthcare services in the United Kingdom, the healthcare sector is expected to drive the demand for high-purity carbon dioxide.
The agricultural sector also contributes to the growth of the United Kingdom carbon dioxide market. Carbon dioxide enrichment in greenhouses has proven to enhance crop yields by accelerating photosynthesis. As the demand for locally grown and high-quality produce increases, greenhouse farming practices have gained traction, leading to higher consumption of carbon dioxide for agricultural applications.
Expanding Applications in Emerging Sectors
The industrial sector in the United Kingdom is witnessing the emergence of new applications for carbon dioxide, further driving market expansion. In the manufacturing industry, carbon dioxide is used as a cooling agent and as a raw material in the production of chemicals and polymers. Additionally, supercritical carbon dioxide is gaining popularity in processes such as decaffeination, essential oil extraction, and dry cleaning, owing to its efficiency and environmental benefits.
Another emerging area is the utilisation of carbon dioxide in the production of sustainable fuels and materials. Research and development activities in the United Kingdom are focused on converting carbon dioxide into valuable products, such as synthetic fuels, building materials, and polymers, using innovative technologies. These developments align with the country's sustainability goals and are expected to create new opportunities in the carbon dioxide market.
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
Challenges and Opportunities
Despite the positive outlook, the United Kingdom carbon dioxide market faces several challenges. Fluctuations in the supply of carbon dioxide due to disruptions in industrial processes, such as ammonia production and ethanol fermentation, can impact its availability and price. Additionally, the energy-intensive nature of carbon capture and utilisation processes poses challenges in terms of cost and scalability.
However, these challenges also present opportunities for innovation and growth. The increasing adoption of renewable energy sources in the United Kingdom provides a pathway for energy-efficient and sustainable carbon capture solutions. Furthermore, the development of advanced technologies for the production and storage of carbon dioxide is expected to enhance its accessibility and cost-effectiveness, driving market growth.
Future Outlook
The United Kingdom carbon dioxide market is poised for significant growth in the coming years, driven by advancements in technology, expanding applications across industries, and the country’s commitment to sustainability. Innovations in carbon capture and utilisation technologies are expected to open new avenues for the production and application of carbon dioxide, further enhancing its market potential.
With the increasing demand for carbon dioxide in established sectors such as food and beverage, healthcare, and agriculture, coupled with emerging opportunities in sustainable materials and fuels, the market is expected to witness robust expansion. As stakeholders in the carbon dioxide value chain continue to collaborate and invest in research and development, the United Kingdom carbon dioxide market is set to play a pivotal role in supporting the country’s environmental and industrial goals.
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