The United Kingdom carbon dioxide (CO2) market has experienced substantial growth over the years and is expected to continue expanding in the coming decade. In 2024, the United Kingdom's CO2 market attained a volume of 725.8 KMT (Kilotons), with a forecasted growth at a Compound Annual Growth Rate (CAGR) of 1.5% from 2025 to 2034, ultimately reaching a projected volume of 840.5 KMT by 2034. North America leads the global CO2 market in terms of revenue, while the Asia Pacific region is emerging as the fastest-growing market for CO2.
The growing demand for carbon dioxide in various industries such as food and beverage, healthcare, manufacturing, and agriculture, combined with sustainability initiatives, is driving the market's expansion. This article explores the United Kingdom's CO2 market dynamics, trends, opportunities, challenges, and key players shaping its future.
United Kingdom Carbon Dioxide Market Outlook
The United Kingdom's carbon dioxide market is integral to several sectors, most notably food and beverages, healthcare, and industrial applications. CO2 is used for a variety of functions such as carbonation in beverages, refrigeration, fire suppression, and in medical therapies. As industries push toward sustainability and carbon neutrality, the demand for CO2 is expected to evolve, creating both challenges and growth opportunities.
Market Volume and Growth Forecast
As of 2024, the United Kingdom's CO2 market stands at a volume of 725.8 KMT. This volume is anticipated to grow at a steady rate of 1.5% CAGR during the period from 2025 to 2034, reaching a total volume of 840.5 KMT by 2034. The demand for CO2 is increasing across sectors such as food and beverage production, agriculture, and manufacturing. Moreover, the growing emphasis on carbon capture technologies and green solutions is expected to shape market trends.
The United Kingdom’s carbon dioxide market is witnessing innovations in production methods, particularly with carbon capture, utilization, and storage (CCUS) technologies, which are expected to support sustainable production in the long run. Furthermore, the market will be positively impacted by the demand for CO2 in beverage carbonation, medical gases, and refrigeration applications.
Get a Free Sample Report with Table of Contents:
https://www.expertmarketresearch.com/reports/united-kingdom-carbon-dioxide-market/requestsample
United Kingdom Carbon Dioxide Market Share & Trends
Market Share Breakdown
The United Kingdom’s CO2 market can be broadly segmented into industrial applications, food and beverage, medical applications, and agricultural uses. The food and beverage industry remains the largest consumer of CO2, primarily for beverage carbonation, refrigeration, and packaging. This industry accounts for a significant portion of the market share due to the increasing demand for carbonated drinks and packaged foods.
The industrial sector, including manufacturing and chemical processes, follows as the second-largest consumer of CO2. Industrial CO2 applications involve use in welding, fire suppression systems, and various chemical reactions. CO2 is also widely used in the production of dry ice, which finds applications in transportation and cooling.
The healthcare industry uses CO2 for respiratory therapy and as a propellant in medical devices. The agricultural sector utilizes CO2 for enhancing plant growth in greenhouses, contributing to its market share. Over the forecast period, all these sectors are expected to experience steady growth in CO2 consumption, driven by both demand and the adoption of sustainability-driven technologies.
Market Trends
Increased Focus on Sustainability: A prominent trend shaping the CO2 market in the UK is the increasing focus on sustainability. The UK government’s ambitious goal of reaching net-zero carbon emissions by 2050 is pushing industries to adopt cleaner production practices, including sustainable CO2 capture and utilization.
Advancements in Carbon Capture Technologies: The development of carbon capture technologies, including carbon capture and storage (CCS), will play a key role in shaping the CO2 market. Several UK-based initiatives are focused on creating carbon capture solutions to reduce emissions, creating a shift toward more sustainable CO2 production methods.
Growth in Food and Beverage Demand: The growing demand for carbonated beverages and packaged foods continues to drive CO2 consumption. This trend is expected to sustain, supported by innovations in packaging, refrigeration, and carbonation.
Increased Adoption of CO2 in Medical Applications: CO2’s role in medical applications is also growing. Its use in respiratory treatments and medical imaging makes it indispensable in healthcare. The expansion of healthcare services in the UK is expected to boost the demand for CO2 in the medical sector.
United Kingdom Carbon Dioxide Market Dynamics & Trends
Market Dynamics
The dynamics driving the United Kingdom carbon dioxide market are influenced by a variety of factors, including regulatory policies, industrial growth, technological advancements, and evolving market needs.
Regulatory and Policy Impact: The UK government is taking proactive steps to reduce carbon emissions and promote sustainability. Regulations encouraging carbon capture, recycling, and reduced CO2 emissions are expected to foster growth in the CO2 market, particularly with the introduction of carbon taxes and emissions trading schemes.
Demand from Key Industries: Industrial activities, including manufacturing, food and beverage production, and healthcare, are the primary drivers of CO2 demand. Carbon dioxide’s wide-ranging uses in these industries ensure sustained market demand. The food and beverage industry’s need for CO2 for carbonation and preservation is likely to remain a cornerstone of market activity.
Technological Advancements: The introduction of innovative technologies such as direct air capture (DAC) and improvements in CCS will influence CO2 production methods. Companies are also exploring new, low-carbon ways to produce CO2, contributing to the overall growth and sustainability of the market.
Economic Growth: The UK economy’s growth contributes to the rising demand for CO2, particularly from industrial, commercial, and agricultural sectors. As production in these industries expands, CO2 usage increases.
Trends in the UK Market
Renewable CO2 Production: One of the most significant trends in the CO2 market is the move toward renewable sources of CO2 production. Technologies that capture CO2 from biomass, waste, or renewable sources are gaining traction. This not only helps mitigate emissions but also supports sustainability efforts in line with government policies.
Increased Adoption of CO2 in Agriculture: Agriculture, particularly greenhouse cultivation, has seen an uptick in the use of CO2 to enhance plant growth. CO2 injection helps plants grow faster, making it a valuable tool in improving agricultural yields and promoting sustainable farming practices.
Medical and Therapeutic Applications: Medical applications, particularly in respiratory treatments and diagnostics, continue to expand. The medical sector’s demand for CO2 for therapeutic and diagnostic procedures is growing, driven by advancements in medical technologies.
Carbonated Beverages and Packaged Foods: The ongoing demand for carbonated drinks, including soft drinks, beer, and sparkling waters, continues to drive CO2 consumption. The food and beverage industry is a major market driver, and the adoption of new carbonation technologies will sustain the demand for CO2.
United Kingdom Carbon Dioxide Market Opportunities and Challenges
Opportunities
Sustainable CO2 Production: The transition toward green and sustainable CO2 production methods presents significant opportunities for market players. The adoption of technologies such as direct air capture, algae-based CO2 capture, and other innovative carbon capture methods is a major growth driver.
Agricultural Expansion: The rising use of CO2 in agriculture, especially in greenhouses, is an opportunity for market expansion. With the growing demand for food production and improved crop yields, the role of CO2 in enhancing plant growth is expected to increase.
Technological Innovation: Continued advancements in CCS technologies present lucrative opportunities for CO2 producers. Investment in these technologies will help reduce the carbon footprint of CO2 production, opening up new markets for CO2 derived from low-carbon sources.
Healthcare Growth: The healthcare sector’s increasing demand for medical gases, including CO2 for respiratory therapies and diagnostics, represents another growing opportunity. The rising number of healthcare facilities and demand for medical treatments further enhances the market outlook.
Challenges
Environmental Concerns: While CO2 plays an essential role in many industries, the environmental impact of CO2 emissions is a significant challenge. Public awareness about the harmful effects of CO2 emissions may lead to stricter regulations, which could affect the market for conventional CO2 production methods.
Supply Chain Issues: The carbon dioxide supply chain can be vulnerable to disruptions, especially during peak demand periods. Disruptions in CO2 production or transportation can cause shortages, affecting industries that rely heavily on CO2, such as food production and healthcare.
Regulatory Pressure: As the UK moves toward net-zero emissions, stricter carbon regulations are likely to be enforced. This presents a challenge for CO2 producers who may face higher costs to adopt low-carbon production methods and meet the country’s climate goals.
Competitor Analysis
The United Kingdom carbon dioxide market is competitive, with several global and regional players vying for market share. Some of the key competitors in the UK market include:
Air Products PLC: Global leader in industrial gases, providing gases for various industries like healthcare, energy, and manufacturing.
BOC Limited (Linde): Major supplier of industrial gases, part of the Linde Group, serving a wide range of industries including chemicals, healthcare, and food processing.
Air Liquide UK Ltd: Branch of the global Air Liquide Group, offering industrial gases and services, focusing on sectors like energy, electronics, and healthcare.
Nippon Gases: Subsidiary of the Japan-based Taiyo Nippon Sanso Corporation, specializing in industrial gases for sectors such as metals, healthcare, and food.
Progases (UK) Ltd: Supplier of industrial gases in the UK, providing products for various sectors including manufacturing, healthcare, and food industries.
Others: A range of smaller or regional players in the industrial gas market, contributing to competition and innovation in specialized gas solutions.
Explore our trending Blogs Reports:
Toy Manufacturers:
https://www.expertmarketresearch.com/articles/top-toys-companies
Media Contact:
Company Name: Claight Corporation
Contact Person: James Jon, Business Consultant
Email: sales@expertmarketresearch.com
Toll Free Number: US +1-415-325-5166 | UK +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: www.expertmarketresearch.com
