The United Kingdom carbon dioxide market size reached 725.8 KMT in 2024. The market is estimated to witness a CAGR of 1.5% during 2025-2034, reaching a volume of 840.5 KMT by 2034. This growth reflects the increasing importance of carbon dioxide in various industries such as food and beverages, medical applications, and metal fabrication, along with rising adoption of sustainable and innovative production techniques. The trajectory of the United Kingdom carbon dioxide market is influenced by advancements in carbon capture technologies, regulatory frameworks, and industrial developments.
This blog post will explore the key segments of the United Kingdom carbon dioxide market, assess its production dynamics, and highlight the role of leading companies in this growing industry.
Key Market Segmentation by Source
Ammonia
Ammonia production is a primary source of carbon dioxide in the United Kingdom carbon dioxide market, as CO₂ is a by-product of ammonia manufacturing. This process is essential for industries requiring food-grade CO₂. Companies like Yara International ASA and Tata Chemicals Europe Limited play a crucial role by integrating advanced CO₂ recovery systems, enhancing the efficiency of CO₂ capture and ensuring a sustainable supply.
Ethyl Alcohol
Ethyl alcohol fermentation, especially in the beverage and biofuel industries, produces significant volumes of CO₂. Bio-based CO₂ from this source aligns with the growing demand for sustainable production processes. Companies like BioCarbonics Ltd. are key players in leveraging bio-based production methods, contributing to cleaner, more sustainable CO₂ sources for the United Kingdom carbon dioxide market.
Substitute Natural Gas (SNG)
SNG processes also contribute to the UK’s CO₂ supply chain, especially for industrial applications. Companies such as BOC Limited (Linde) are developing innovative solutions to capture CO₂ from SNG processes, helping to mitigate emissions while meeting industrial demand for CO₂.
Market Segmentation by Production
Biological Production
Biological production methods, including fermentation and anaerobic digestion, are gaining importance in the United Kingdom carbon dioxide market. These methods not only help produce CO₂ sustainably but also minimize environmental impact. With industries increasingly focusing on reducing their carbon footprint, Ensus UK Limited is a key player in biological CO₂ production, particularly through bioethanol production.
Combustion Production
Combustion continues to be a significant method of CO₂ production in the industrial and energy sectors. However, this process faces challenges due to emissions concerns. Companies like Air Liquide UK Ltd and Air Products PLC are investing heavily in carbon capture, utilization, and storage (CCUS) technologies, ensuring that CO₂ from combustion can still meet industrial needs while reducing the environmental footprint.
Key Market Segmentation by End Use
Food and Beverages
The food and beverages sector is the largest consumer of CO₂ in the United Kingdom carbon dioxide market. CO₂ is extensively used in carbonated beverages, food preservation, and packaging. With the increasing demand for food-grade CO₂, companies like BioCarbonics Ltd. and BOC Limited (Linde) are providing sustainable CO₂ solutions to meet this growing demand in the food and beverage industry.
Oil and Gas
CO₂ is used in enhanced oil recovery (EOR) processes in the oil and gas industry. As the UK shifts towards renewable energy, the demand for CO₂ in EOR applications is expected to decline slightly. However, companies like Air Products PLC continue to provide CO₂ for industrial applications, supporting oil field operations and ensuring a reliable supply for enhanced recovery processes.
Medical Applications
Medical applications for CO₂ include surgeries, respiratory therapies, and other critical procedures. The growing healthcare sector in the UK, alongside innovations in medical technology, is expected to drive increased demand for medical-grade CO₂. Companies such as Nippon Gases and Progases (UK) Ltd play an essential role in ensuring high-quality CO₂ supply for the medical sector.
Metal Fabrication
In the metal fabrication industry, CO₂ is used in welding, cutting, and other manufacturing processes. As the manufacturing sector in the UK continues to grow, especially in industries like automotive and construction, the demand for CO₂ in metal fabrication is set to increase. Key players like Tata Chemicals Europe Limited and Air Liquide UK Ltd are pivotal in meeting the rising CO₂ requirements for these industries.
Other Applications
In addition to food and beverages, oil and gas, medical, and metal fabrication, CO₂ is used in various applications like chemical production, water treatment, and fire suppression. These diverse uses ensure a constant demand across multiple industries, contributing to the overall stability and growth of the United Kingdom carbon dioxide market.
Market Dynamics
SWOT Analysis
Strengths
- Established infrastructure for CO₂ production and distribution in the United Kingdom carbon dioxide market.
- Diverse applications across a wide range of industries.
- Strong industrial base supporting consistent demand for CO₂.
Weaknesses
- Dependency on a limited number of primary CO₂ sources like ammonia and ethyl alcohol.
- Environmental challenges and regulatory concerns related to emissions.
Opportunities
- Advancements in carbon capture and utilization technologies that enhance production efficiency.
- Growing interest in bio-based CO₂ and sustainable production methods.
- Increasing focus on sustainability and circular economy initiatives.
Threats
- Stringent environmental regulations on CO₂ production and emissions.
- Supply chain disruptions, particularly related to raw material availability and transport.
- Competition from alternative gases and substitutes in various applications.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital investment and stringent regulatory requirements act as barriers to new entrants.
- Bargaining Power of Suppliers: A limited number of CO₂ sources gives suppliers a moderate level of power in the market.
- Bargaining Power of Buyers: Buyers benefit from multiple suppliers in the market but rely on high-quality CO₂ and reliable delivery.
- Threat of Substitutes: The rise of alternative gases for specific applications could pose a long-term threat to CO₂ demand.
- Industry Rivalry: Intense competition among existing players drives innovation and improves cost efficiency, ensuring competitive pricing in the United Kingdom carbon dioxide market.
Regional Insights
Urban centers like London, Birmingham, and Manchester are key demand drivers for CO₂ due to their high concentration of industries. However, rural areas are experiencing growth as industries expand beyond metropolitan regions. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chain management to ensure efficient CO₂ distribution across the UK, balancing production capabilities with demand in both urban and rural sectors.
Competitive Landscape
The United Kingdom carbon dioxide market is highly competitive, with several key players focusing on innovation and sustainability. Key companies in the market include:
- Ensus UK Limited: Specializes in biological CO₂ production through bioethanol production.
- BioCarbonics Ltd.: Focuses on providing bio-based CO₂ solutions, primarily for the food and beverage industry.
- Tata Chemicals Europe Limited: A key player in the industrial CO₂ market, particularly in metal fabrication and other manufacturing sectors.
- Yara International ASA: Provides ammonia-based CO₂ solutions, contributing significantly to the UK CO₂ supply.
- Air Products PLC: Invests heavily in carbon capture and utilization technologies for CO₂ production and supply.
- BOC Limited (Linde): A leader in CO₂ supply and distribution, offering diverse solutions for industrial and medical applications.
- Air Liquide UK Ltd: Focuses on sustainable CO₂ production technologies and efficient distribution across various sectors.
- Nippon Gases: Supplies high-quality CO₂ for the medical and industrial sectors.
- Progases (UK) Ltd: Specializes in meeting the specific CO₂ requirements of various industries.
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Freya Parker
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