United Kingdom Carbon Dioxide Market Outlook

According to the report by Expert Market Research (EMR), the UK carbon dioxide market size reached a volume of 725.80 KMT in 2024. Driven by the increasing demand for CO2 across several sectors, including food and beverage, healthcare, and industrial applications, the United Kingdom carbon dioxide market is projected to grow at a compound annual growth rate (CAGR) of 1.50% from 2025 to 2034, reaching a volume of 842.32 KMT by 2034.

Carbon dioxide is a colorless, odorless gas that has found its place as an essential industrial gas in multiple applications. Its use spans from the carbonation of beverages to medical applications, food preservation, and even in fire suppression systems. The widespread demand for CO2 is primarily driven by its critical role in various sectors that are vital to the United Kingdom's economy.

Driving Factors of Market Growth

The United Kingdom carbon dioxide market growth is primarily fueled by increasing demand in the food and beverage industry. Carbon dioxide plays a pivotal role in carbonating soft drinks, beers, and sparkling wines, a demand that continues to surge. In addition, the CO2 market is benefitting from its application in the preservation of food products, particularly in packaging, where it helps extend the shelf life of perishable goods by maintaining an optimal atmosphere for preservation. The rise in convenience food consumption, coupled with innovations in packaging technology, has bolstered the need for CO2 in the food and beverage sector.

Another significant driver of the United Kingdom carbon dioxide market is the healthcare industry. Medical CO2 is increasingly used in diagnostic and therapeutic procedures, including in insufflation during minimally invasive surgeries. The growth of healthcare services, especially in private healthcare and the increasing popularity of minimally invasive surgical procedures, has raised the demand for CO2, further supporting the market's upward trajectory.

Technological Innovations and Industrial Applications

The United Kingdom carbon dioxide market is also benefitting from various technological advancements in industrial applications. CO2 is a crucial component in the oil and gas industry, where it is used for enhanced oil recovery (EOR), which involves injecting CO2 into oil reservoirs to increase production efficiency. The continuing investment in improving CO2 capture technologies for EOR has expanded its usage, boosting market demand.

Additionally, CO2 plays a vital role in the production of chemicals such as urea, which is a key ingredient in fertilizers. The growing need for fertilizers driven by the increasing global food demand is driving the demand for CO2 in chemical production, particularly in the UK, where the agricultural industry continues to be a significant contributor to the economy.

Another emerging area of interest is the use of CO2 in the energy industry. As the UK strives to reduce its carbon footprint and increase the use of renewable energy sources, CO2 is being used in carbon capture, utilization, and storage (CCUS) technologies. These innovations are gaining momentum as part of the UK’s efforts to meet its carbon reduction targets and to generate sustainable energy alternatives. The potential of CO2 for environmental sustainability is expected to contribute substantially to market expansion.

Food and Beverage Industry Dominates CO2 Usage

The food and beverage sector continues to dominate the United Kingdom carbon dioxide market. CO2’s carbonation properties make it an essential gas for soft drink manufacturers, beer brewers, and carbonated water producers. In addition to carbonation, CO2 is also widely used in food freezing and chilling applications. By rapidly freezing food products with CO2, manufacturers ensure the retention of taste and texture, making it a valuable tool for the preservation of high-quality foods. The increasing consumer demand for packaged and processed foods, coupled with innovations in freezing technologies, has driven further growth in the demand for United Kingdom carbon dioxide market.

In the food preservation space, CO2’s application in modified atmosphere packaging (MAP) continues to rise. MAP is increasingly used to preserve the quality and extend the shelf life of perishable goods, from meats and cheeses to fruits and vegetables. By controlling the levels of gases within the packaging, CO2 helps to slow down microbial growth, thus maintaining the freshness of the product for longer periods. As consumer demand for fresh and high-quality food products increases, MAP and the role of CO2 in it will continue to gain importance.

The beverage industry remains a cornerstone of CO2 consumption in the UK. Carbonated soft drinks, beer, and sparkling wines are major consumers of CO2 for their production and preservation. The growing preference for beverages with a refreshing effervescence and the increasing craft beer and sparkling wine markets are projected to maintain high demand for CO2. The proliferation of non-alcoholic beers and sparkling beverages has also added new dimensions to CO2 consumption in the sector.

Healthcare Sector's Role in Market Demand

The healthcare industry is another key driver of United Kingdom carbon dioxide market growth. In medical applications, CO2 is essential for insufflation during laparoscopic surgeries, where it is used to inflate the abdomen to create a working space for surgeons. This procedure is becoming increasingly common as minimally invasive surgery gains popularity due to its reduced recovery time and lower risk. As the demand for such procedures rises in the UK, so does the demand for medical-grade CO2. CO2 is also used in certain diagnostic imaging procedures, further expanding its role in the healthcare industry.

CO2 is also increasingly utilized in the medical field for cryotherapy, where it is used in the form of dry ice for freezing and preserving biological samples, as well as for pain management procedures. As the UK healthcare system continues to innovate and adopt new medical technologies, the demand for CO2 in the medical sector is expected to rise significantly.

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United Kingdom Carbon Dioxide Market Segmentation

The market can be divided based on source, production and End use.

• 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

Environmental Considerations and Market Challenges

While the growth prospects for the United Kingdom carbon dioxide market are promising, environmental concerns remain an area of focus. CO2, as a greenhouse gas, plays a critical role in the global climate change issue, and there is a growing push to reduce CO2 emissions. As the UK continues to make strides in achieving its carbon-neutral goals by 2050, the carbon dioxide market may face regulatory pressures to reduce the environmental impact associated with its production and use.

However, advances in CO2 capture and storage technologies offer hope for mitigating these challenges. The UK government’s commitment to carbon capture, utilization, and storage (CCUS) as part of its strategy for carbon neutrality is likely to present opportunities for CO2 reuse in various sectors. With the ongoing push toward carbon management and the development of technologies to recycle and reprocess CO2, the industry’s environmental footprint could be significantly reduced, ensuring a sustainable future for CO2 production and utilization.

Outlook for the Future

The United Kingdom carbon dioxide market is set for continued growth, driven by its essential role across a wide array of industries, including food and beverage, healthcare, and energy. The increasing adoption of CO2 in carbon capture technologies, coupled with its critical applications in food preservation and medical procedures, provides a robust foundation for market expansion.

As innovation in CO2 applications continues to unfold, the market is likely to see new growth opportunities in areas such as environmental sustainability, energy production, and food processing. With the UK’s ongoing efforts to reduce its carbon footprint, CO2 management will become a key area of focus for businesses and regulatory bodies alike, shaping the future dynamics of the CO2 market.

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