The United Kingdom carbon dioxide market plays a crucial role in various industries, including food and beverage, healthcare, oil & gas, and chemical manufacturing. Carbon dioxide (CO2) is primarily used for carbonation, freezing, preservation, and industrial processes. With the growing demand for packaged food, carbonated beverages, and advancements in medical applications, CO2 consumption in the UK continues to expand.
United Kingdom Carbon Dioxide Market Size
As of 2024, the carbon dioxide market in the UK reached a volume of 725.8 KMT. This robust market size can be attributed to the high demand for CO2 in various sectors, particularly in food and beverage carbonation, medical uses, and industrial applications. With rising population and increased consumer preference for packaged and processed foods, the need for CO2 in these sectors will continue to surge.
By 2034, the market size is forecasted to increase, reaching 840.5 KMT, driven by both industrial demand and advancements in CO2 production technologies. As the market grows, CO2 supply will remain essential to support these diverse applications, particularly in sectors that require reliable and safe CO2 sources.
United Kingdom Carbon Dioxide Market Trends
The United Kingdom carbon dioxide market is undergoing several trends, all of which play an important role in shaping the market's trajectory over the next decade:
Sustainability Focus: A growing emphasis on sustainability and reduced environmental impact is pushing industries to adopt greener production practices. Carbon capture and storage (CCS) technologies and CO2 recycling solutions are gaining prominence, aligning with the country’s environmental policies and carbon reduction targets.
Expansion of Food & Beverage Sector: The demand for carbonated drinks and processed foods is driving the consumption of CO2 in the UK. The rise in consumption of convenience foods, carbonated beverages, and frozen foods fuels the need for CO2 in these applications.
Medical Applications: CO2 is increasingly used in the medical industry for respiratory treatments, cryotherapy, and as a medical gas. The demand for CO2 from the healthcare sector is steadily increasing as medical advancements continue to evolve.
Technological Advancements: Innovations in CO2 production and recovery techniques are improving efficiency, which is helping to meet the growing demand. Technologies such as CCS and enhanced production methods are making CO2 production more sustainable and cost-effective.
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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 carbon dioxide market in the UK is poised for consistent growth, with an expected CAGR of 1.5% from 2025 to 2034. This growth is attributed to multiple factors, including:
Increased Demand for Packaged Food and Beverages: With busy lifestyles and changing consumer preferences, there is a growing demand for convenience foods, including frozen meals and beverages. This has a direct impact on CO2 consumption, as it is essential for packaging, preservation, and carbonation processes.
Healthcare Expansion: The healthcare sector's increasing demand for CO2 for use in medical treatments and as a respiratory aid is expected to drive market growth. As healthcare services expand and new CO2 applications emerge, the market will see consistent demand.
Industrial Applications: The industrial sector, particularly in chemical production and oil recovery, continues to rely on CO2 for various processes. As industries evolve and demand for industrial gases rises, CO2 consumption will follow suit.
United Kingdom Carbon Dioxide Market Analysis
The UK carbon dioxide market is highly diversified, with CO2 serving various purposes across multiple industries. Below is an analysis of key end-use applications:
Food and Beverage: This is the largest sector driving CO2 consumption, particularly for carbonation, food preservation, and packaging. With the growing demand for packaged and processed foods, CO2 remains essential to the food and beverage industry.
Healthcare: The medical and healthcare industry uses CO2 for treatments such as cryotherapy, as well as in respiratory care, where CO2 is used for respiratory stimulants and medical gas mixtures. The expanding healthcare sector continues to be a key driver of CO2 demand.
Oil and Gas: CO2 is widely used in enhanced oil recovery (EOR) processes, where it is injected into oil reservoirs to extract additional oil. The oil and gas industry’s continued demand for CO2 will support market growth.
Industrial and Chemical: CO2 is utilized in various industrial processes, including chemical production, welding, and as a refrigerant. As the UK’s industrial and chemical sectors evolve, CO2 consumption in these industries is expected to remain strong.
United Kingdom Carbon Dioxide Market Forecast
The UK carbon dioxide market is expected to experience steady growth during the forecast period of 2025 to 2034. With a CAGR of 1.5%, the market will expand from a volume of 725.8 KMT in 2024 to an estimated 840.5 KMT by 2034. This growth will be driven by continued demand across key sectors, including food and beverage, healthcare, and industrial applications.
Technological advancements in CO2 production, as well as the increasing emphasis on sustainability, will help meet the rising demand while ensuring that CO2 production remains efficient and environmentally responsible.
Competitor Analysis
Several key players dominate the United Kingdom carbon dioxide market. These companies lead in CO2 production and distribution, each playing a crucial role in meeting the growing demand across industries. Below are the leading players in the market:
Ensus UK Limited: A major producer of CO2, Ensus UK specializes in bioethanol production and CO2 recovery. The company focuses on providing sustainable CO2 solutions and has established itself as a key player in the market.
BioCarbonics Ltd.: This company focuses on CO2 recovery, recycling, and sustainable production. BioCarbonics provides CO2 to a variety of industries, including food, beverage, and medical sectors, contributing to the UK market’s growth.
Tata Chemicals Europe Limited: Tata Chemicals produces CO2 primarily for the food and beverage industry, while also serving industrial and chemical sectors. The company is known for its reliable CO2 supply and commitment to sustainability.
Yara International ASA: Specializing in industrial gases, Yara International provides CO2 for use in the agriculture, food, and beverage industries. The company is focused on sustainable production methods and reducing the environmental impact of CO2 production.
Air Products PLC: A global leader in industrial gases, Air Products PLC supplies CO2 for a wide range of industries, including food and beverage, healthcare, and manufacturing. The company is known for its innovations in CO2 production and its commitment to environmental sustainability.
BOC Limited (Linde): As part of the Linde Group, BOC Limited is one of the largest suppliers of industrial gases, including CO2. The company is recognized for its strong distribution network and consistent product quality across industries.
Air Liquide UK Ltd.: A major supplier of CO2 and other industrial gases, Air Liquide provides CO2 for various applications, including food preservation, medical uses, and industrial processes. The company is committed to energy-efficient CO2 production methods.
Nippon Gases: Nippon Gases produces and supplies CO2 for industries such as food, beverage, and medical applications. The company focuses on customer satisfaction and the provision of safe, reliable CO2 supply.
Progases (UK) Ltd.: Progases is a leading supplier of CO2 and other industrial gases, serving various sectors including food, beverage, and healthcare. The company is known for its innovative solutions and customer-focused approach.
Others: These companies, along with others, are working towards increasing CO2 production efficiency, developing sustainable solutions, and meeting the growing demand for carbon dioxide across various industries.
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