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United Kingdom Carbon Dioxide Market Outlook
the United Kingdom carbon dioxide market size was a volume of 725.80 KMT in 2024. Aided by the growing demand for carbon dioxide across various industries and the increasing emphasis on sustainable carbon capture and utilization, the market is projected to grow at a CAGR of 1.50% between 2025 and 2034 to reach a volume of 842.32 KMT by 2034.
Carbon dioxide (CO2) is a versatile gas widely used in various industries, including food and beverage, healthcare, chemical manufacturing, and oil recovery. In the food industry, CO2 is primarily used for carbonating beverages, food preservation, and refrigeration. Additionally, CO2 plays a crucial role in medical applications, industrial processes, and as a key component in enhanced oil recovery (EOR) operations.
The increasing demand for carbon dioxide in the food and beverage industry is a significant driver of the United Kingdom carbon dioxide market growth. Carbon dioxide is extensively used in carbonated drinks, packaged foods, and modified atmosphere packaging (MAP) to enhance shelf life and maintain product freshness. The growing consumer preference for carbonated soft drinks, beer, and other aerated beverages has contributed to the rising demand for CO2.
Furthermore, the expanding applications of carbon dioxide in healthcare and pharmaceuticals are also driving market growth. Medical-grade CO2 is widely used in minimally invasive surgeries, respiratory therapies, and laboratory applications. The increasing prevalence of chronic diseases, coupled with advancements in medical technologies, is expected to bolster the demand for carbon dioxide in healthcare applications.
Market Drivers and Trends
The rising focus on carbon capture and utilization (CCU) technologies is significantly influencing the United Kingdom carbon dioxide market trends. With growing concerns about climate change and carbon emissions, industries are increasingly adopting carbon capture technologies to reduce their environmental footprint. CO2 is being repurposed for enhanced oil recovery, industrial applications, and even in the production of synthetic fuels and chemicals, thereby contributing to market growth.
Additionally, the chemical and manufacturing industries are key consumers of carbon dioxide, where it is used for various applications, including welding, chemical synthesis, and refrigeration. The increasing adoption of CO2 in these industries is expected to propel market demand in the coming years.
Another important trend impacting the market is the rising investment in sustainable CO2 production methods. Many companies are focusing on producing CO2 from renewable sources, such as biogas plants and industrial waste gases, to reduce reliance on fossil-fuel-derived CO2. This shift towards sustainable production is expected to drive market growth over the forecast period.
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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
Challenges and Opportunities
Despite the positive outlook, the United Kingdom carbon dioxide market faces several challenges. Supply chain disruptions and fluctuations in CO2 production due to varying demand across industries can impact market stability. Additionally, stringent environmental regulations regarding carbon emissions pose challenges for CO2 producers, necessitating investments in sustainable capture and utilization technologies.
However, opportunities for market expansion exist in the development of new CO2 applications. The increasing use of carbon dioxide in greenhouse farming, water treatment, and biofuels presents promising growth avenues. The adoption of CO2-based solutions in the construction industry, such as carbonated concrete and other sustainable materials, further supports market development.