United Kingdom Carbon Dioxide Market Analysis & Forecast 2024-2032: Growth, Trends, and Key Drivers

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market is projected to grow at a compound annual growth rate (CAGR) of 1.5% from 2025 to 2034. The growth in this market is primarily driven by increasing industrial applications, rising demand in the food and beverage industry, and the growing emphasis on sustainability and carbon capture technologies. Additionally, the UK’s commitment to reducing its carbon footprint and transitioning towards more environmentally friendly energy sources will have a significant impact on the carbon dioxide market. By 2032, the market is expected to witness substantial growth, propelled by advancements in industrial gas production, stringent regulations around emissions, and innovation in carbon dioxide utilization.

Carbon dioxide (CO₂) plays a crucial role in various industries, including the production of chemicals, food and beverages, healthcare, and agriculture. The UK's carbon dioxide market is evolving in response to new market dynamics, such as the increasing need for CO₂ in enhanced oil recovery (EOR), carbon capture and storage (CCS) technologies, and innovations in the food and beverage sector, where CO₂ is widely used in carbonating drinks, chilling, and packaging. Furthermore, the rise of sustainability-driven practices has led to a push for green CO₂ production methods that have less environmental impact, contributing to the market's transformation.

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Key Drivers of Market Growth

• Rising Demand in the Food and Beverage Industry
  The food and beverage industry is one of the largest consumers of carbon dioxide in the UK. CO₂ is widely used in the carbonation of soft drinks, beer, and sparkling waters, and its demand has surged due to growing consumer preferences for carbonated beverages. Moreover, CO₂ is crucial in food packaging, where it helps extend the shelf life of products by controlling the atmosphere around packaged food. The increasing popularity of ready-to-eat meals and convenience foods is further driving CO₂ demand in packaging applications.
• Industrial Applications and Carbon Capture
  Carbon dioxide is used extensively in a variety of industrial processes, including chemical manufacturing, welding, and as a refrigerant in some industrial settings. The UK government's commitment to reducing its carbon footprint is pushing the adoption of Carbon Capture and Storage (CCS) technologies. These technologies capture CO₂ from industrial sources and store it underground, preventing it from entering the atmosphere. The development of CCS infrastructure is expected to play a significant role in the UK's carbon dioxide market over the forecast period.
• Environmental Sustainability and Green CO₂ Production
  As part of the UK’s ambitious climate change goals, industries are increasingly adopting environmentally sustainable practices. Green CO₂ production methods, including the use of renewable energy in CO₂ generation and the recycling of CO₂ emissions from industrial processes, are gaining traction. These efforts not only reduce the environmental impact of CO₂ production but also align with the UK’s broader decarbonization efforts.
• Use in Enhanced Oil Recovery (EOR)
  The use of CO₂ in enhanced oil recovery (EOR) processes is another significant factor influencing market growth. CO₂ is injected into oil reservoirs to improve the extraction of crude oil. While this process has been primarily used in regions like North America, the UK’s North Sea oilfields are increasingly adopting CO₂-based EOR techniques to boost production. The government’s efforts to maintain and optimize the output of the country’s aging oil reserves will likely drive the continued use of CO₂ in EOR applications.

Market Segmentation

The United Kingdom carbon dioxide market can be divided based on type, application, and distribution channel.

Market Breakup by Type:

• Liquid CO₂
  Liquid carbon dioxide is widely used in various applications, including beverage carbonation, food preservation, and as a refrigerant in cold storage systems. This segment is anticipated to grow due to increasing demand for CO₂ in the food and beverage sector, as well as in refrigeration and cryogenic applications.
• Gas CO₂
  Carbon dioxide in its gaseous form is used in a wide range of industrial applications, including chemical processing, fire extinguishing systems, and in certain metal fabrication processes. The demand for gas CO₂ is also being fueled by its use in medical applications, such as insufflation during laparoscopic surgeries.

Market Breakup by Application:

• Food and Beverage
  The food and beverage industry remains the largest consumer of carbon dioxide, particularly in the production of carbonated drinks and in packaging. CO₂ is used in carbonation processes to give beverages their fizzy quality. It also plays an essential role in food preservation, where it helps extend the shelf life of perishable products. With the rise of convenience foods and a growing demand for carbonated beverages, this segment is expected to remain dominant in the coming years.
• Chemical Manufacturing
  CO₂ is widely used in the production of chemicals, such as urea, which is a key component in fertilizers. The chemical industry is one of the major industrial users of CO₂ in the UK, and its demand for CO₂ is expected to continue growing as the demand for chemicals increases.
• Healthcare and Medical
  In the healthcare sector, CO₂ is used in various medical procedures, including in laparoscopic surgeries, where it is employed for insufflation purposes. Its use in medical applications, particularly in surgical and diagnostic procedures, is likely to grow with the increasing demand for advanced healthcare services.
• Energy and Oil Recovery
  The use of CO₂ in enhanced oil recovery (EOR) is another significant application driving the market. CO₂ is injected into oil reservoirs to help extract more oil. This technique is expected to remain relevant, especially in the UK’s North Sea oilfields, where CO₂ injection techniques are being increasingly implemented to optimize oil production.
• Other Applications
  Other applications of CO₂ include its use in fire extinguishing systems, as a refrigerant in some industrial processes, and in certain manufacturing processes like metal fabrication.

Market Breakup by Distribution Channel:

• Direct Supply
  Direct supply channels involve the sale of CO₂ directly from producers to large industrial consumers, such as chemical plants, food manufacturers, and oil fields. This segment is expected to continue to dominate, as large-scale industrial users prefer direct relationships with CO₂ suppliers to ensure a steady and reliable supply of the gas.
• Retail Supply
  Retail supply refers to the sale of packaged CO₂ to smaller users, such as beverage manufacturers and healthcare providers. Retail distribution channels are expected to see growth, particularly in the food and beverage sector, where smaller quantities of CO₂ are required for production.

Competitive Landscape

The EMR report explores the market shares, production capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the United Kingdom carbon dioxide market. Some of the prominent players in the market include:

• Air Products and Chemicals Inc.
  A global leader in industrial gases, Air Products is a key player in the UK carbon dioxide market. The company provides CO₂ for various industrial and commercial applications, including the food and beverage, chemical manufacturing, and healthcare sectors.
• Linde plc
  Linde is another major player in the UK’s carbon dioxide market. The company operates a wide range of CO₂ production and supply operations, serving industries such as energy, healthcare, food and beverage, and chemicals. Linde has invested heavily in sustainability and carbon capture technologies, positioning itself as a key player in the green CO₂ market.
• ExxonMobil
  ExxonMobil is a significant player in the carbon dioxide market in the UK, particularly in enhanced oil recovery (EOR) applications. The company has a long-standing presence in the energy sector and plays a major role in CO₂-based oil recovery processes.
• Tata Chemicals Ltd.
  Tata Chemicals is a leading manufacturer of CO₂ in the UK, providing the gas for a wide range of industrial applications. The company is focused on sustainable production practices and has made significant strides in reducing the environmental impact of its CO₂ manufacturing processes.
• Praxair Inc.
  Praxair, a subsidiary of Linde, is a leading provider of industrial gases, including CO₂. The company supplies CO₂ to various sectors, including food and beverage, healthcare, and manufacturing, and has invested in technology to improve the efficiency and sustainability of its operations.
• Other Notable Players
  Other companies operating in the UK carbon dioxide market include Air Liquide, BOC, and The Messer Group, all of which contribute to the growing demand for CO₂ across various industries.

The United Kingdom carbon dioxide market is poised for steady growth in the coming years. Factors such as increasing demand in the food and beverage industry, growing applications in chemical manufacturing, and advancements in carbon capture and storage technologies are driving the market forward. However, sustainability concerns and the transition to greener production methods will play a critical role in shaping the future of the industry. By investing in innovation, companies can meet the demands of the evolving market while also addressing environmental concerns, ensuring long-term success in the carbon dioxide sector.