United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide market size reached a volume of 725.80 KMT in 2024. As industries continue to seek effective solutions for carbon emissions reduction, coupled with rising demand across various sectors such as food and beverage, healthcare, and manufacturing, the market is expected to expand at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, ultimately reaching volume of 842.32 KMT by 2034.

Overview of Carbon Dioxide (CO2) in the United Kingdom

Carbon dioxide is a colorless, odorless gas found naturally in the Earth’s atmosphere. While CO2 has been historically associated with the process of photosynthesis, greenhouse gas emissions, and climate change, it plays a vital role in several industries. In the United Kingdom, United Kingdom carbon dioxide market is an essential component used in a variety of sectors, ranging from food and beverage preservation to medical applications and industrial manufacturing.

The demand for carbon dioxide in the United Kingdom market is driven by several factors, including an increase in carbon capture technologies, growing demand for CO2 in industrial applications, and the need for climate-change mitigation solutions. The government’s commitment to reducing carbon emissions in accordance with global sustainability goals is also shaping the trajectory of the CO2 market.

Driving Forces Behind the Growth

Growing Industrial Applications of CO2: One of the major drivers behind the expanding United Kingdom carbon dioxide market is its growing industrial applications. Carbon dioxide is widely used in the manufacturing of chemicals, plastics, and beverages. The food and beverage sector, in particular, is a major consumer of CO2 for carbonation, refrigeration, and preservation. With the increasing demand for carbonated drinks and processed foods, the need for CO2 continues to rise.

In addition to the food and beverage industry, the pharmaceutical and healthcare industries also rely on CO2 for medical and therapeutic applications. Carbon dioxide is used in medical procedures such as minimally invasive surgery, where it serves as a gas for insufflation during laparoscopic procedures. The demand for CO2 in these critical applications is expected to continue increasing, thereby boosting the carbon dioxide market.

Demand for CO2 in Climate Change Mitigation: The ongoing push toward reducing carbon emissions globally is also a key factor propelling the United Kingdom carbon dioxide market. Although carbon dioxide is considered a greenhouse gas, its application in carbon capture and utilization (CCU) technologies has grown substantially. CCU technologies aim to capture CO2 emissions from industrial processes and store or use them to create products like synthetic fuels, chemicals, and building materials. The United Kingdom, with its ambitious net-zero carbon emissions target by 2050, is investing heavily in these technologies to meet its climate goals.

The captured CO2 is also being explored as a raw material in the production of various chemicals and synthetic fuels. This growing focus on carbon capture not only serves to reduce the negative environmental impact but also presents new business opportunities within the market. These developments in carbon dioxide utilization are expected to drive market growth significantly.

Advancements in Carbon Capture and Storage (CCS) Technologies: The United Kingdom government has been increasing investment in carbon capture and storage (CCS) technologies, which play an essential role in mitigating climate change. By capturing CO2 emissions at the source of production, CCS technologies prevent these emissions from being released into the atmosphere. Once captured, the CO2 can be stored in underground geological formations or used in industrial processes. This initiative is expected to have a significant impact on reducing carbon emissions across the country and further stimulate the demand for CO2 storage and transportation solutions.

Sustainability Initiatives and Government Regulations: Sustainability has become a priority in the United Kingdom across both the private and public sectors. The UK government has introduced several initiatives and regulations aimed at reducing carbon emissions and supporting environmentally friendly practices. For example, carbon taxes, emissions reduction targets, and carbon credits are being implemented to encourage businesses to reduce their carbon footprints.

These regulatory measures are expected to create a favorable environment for the growth of the CO2 market in the country. As industries adopt carbon dioxide capture and recycling solutions to comply with government regulations, the demand for CO2 as a resource is likely to increase.

Applications of CO2 Across Key Sectors

Food and Beverage Industry: Carbon dioxide is used extensively in the food and beverage industry for its ability to carbonate drinks, preserve perishable items, and extend shelf life. The demand for carbonated drinks, including soda, sparkling water, and alcoholic beverages, has been increasing, which has contributed significantly to the CO2 market growth. CO2 is also utilized for its cooling properties in food storage and transportation. In the United Kingdom, the growing preference for packaged and convenience food products continues to drive the demand for CO2 across these segments.

Healthcare and Medical Applications: United Kingdom carbon dioxide market is used in medical procedures such as laparoscopic surgeries, where it is introduced into the body to inflate the abdomen, providing better visibility for surgeons. This procedure is critical for various surgeries, including gallbladder removal and organ transplants. The healthcare sector in the United Kingdom is expected to see continued growth, with advancements in minimally invasive procedures and other medical applications requiring CO2, further bolstering the CO2 market.

Manufacturing and Industrial Applications: Carbon dioxide is also used in manufacturing, particularly in welding, where it is employed as a shielding gas in MIG and TIG welding. It helps protect the weld from contaminants and oxidation, improving the quality of the final product. Moreover, CO2 is used in industrial cooling systems, fire extinguishers, and even in the extraction of certain metals. The diverse applications of CO2 in various industrial processes in the United Kingdom are key drivers of the market.

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United Kingdom Carbon Dioxide 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

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