United Kingdom Carbon Dioxide Market: Trends, Growth, and Opportunities (2025-2034)

The United Kingdom carbon dioxide market attained a volume of 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 steady growth reflects the increasing importance of carbon dioxide across various sectors such as food and beverages, medical applications, and metal fabrication. The United Kingdom Carbon Dioxide Market is also experiencing shifts due to advancements in carbon capture technologies, evolving regulatory frameworks, and sustainable production practices.

In this blog post, we will explore the key segments driving the United Kingdom Carbon Dioxide Market, assess its production dynamics, and examine the roles of leading companies in shaping the industry over the next decade.

Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market

Ammonia

Ammonia production is one of the largest sources of carbon dioxide in the United Kingdom Carbon Dioxide Market. CO₂ is produced as a by-product during the manufacturing of ammonia, primarily for industrial use. Companies like Yara International ASA and Tata Chemicals Europe Limited have integrated advanced CO₂ recovery systems to optimize production, making ammonia plants a significant source of CO₂ supply for multiple industries, especially food-grade applications.

Ethyl Alcohol

Fermentation processes used in ethyl alcohol production also contribute to CO₂ generation. The growing bio-based CO₂ market is driven by sectors such as the beverage industry and biofuels, where CO₂ is a crucial by-product. Companies like BioCarbonics Ltd. play a vital role in using bio-based production methods to supply cleaner, sustainable CO₂ to meet increasing demand, particularly in food and beverage manufacturing.

Substitute Natural Gas (SNG)

The United Kingdom Carbon Dioxide Market also benefits from CO₂ captured during Substitute Natural Gas (SNG) production processes. This by-product provides additional CO₂ that supports a range of industrial applications, including enhanced oil recovery (EOR) and industrial gases. Companies like BOC Limited (Linde) are innovating to capture CO₂ from SNG processes, contributing to the market’s sustainability efforts.

Market Segmentation by Production in the United Kingdom Carbon Dioxide Market

Biological Production

Biological CO₂ production, through methods like fermentation and anaerobic digestion, is gaining momentum in the United Kingdom Carbon Dioxide Market. These biological methods are eco-friendly and more sustainable compared to traditional combustion-based processes. Companies like Ensus UK Limited, which focuses on bioethanol production, are crucial in this segment, meeting the demand for bio-based CO₂ solutions across industries aiming to reduce their environmental footprint.

Combustion Production

Combustion remains a significant method of CO₂ production, especially within the energy and industrial sectors. However, the United Kingdom Carbon Dioxide Market faces challenges with emissions concerns. To address this, key players such as Air Liquide UK Ltd and Air Products PLC are investing heavily in carbon capture, utilization, and storage (CCUS) technologies, ensuring that CO₂ production from combustion processes remains viable while reducing carbon emissions.

Key Market Segmentation by End Use in the United Kingdom Carbon Dioxide Market

Food and Beverages

The food and beverage industry is one of the largest consumers of CO₂ in the United Kingdom Carbon Dioxide Market. Carbon dioxide is integral in the carbonation of beverages, food preservation, and packaging. As consumer demand for carbonated drinks and sustainable packaging solutions grows, companies such as BioCarbonics Ltd. and BOC Limited (Linde) are increasing their focus on sustainable and high-quality CO₂ solutions to cater to the growing food and beverage sector.

Oil and Gas

In the oil and gas industry, CO₂ is used for enhanced oil recovery (EOR) and other applications. Despite the UK’s transition to renewable energy, the demand for CO₂ in the oil and gas sector remains significant. The United Kingdom Carbon Dioxide Market continues to serve the oil and gas industry, with companies such as Air Products PLC providing CO₂ for these applications.

Medical Applications

CO₂ is indispensable in the medical field, where it is used for procedures such as surgeries and anesthesia, as well as respiratory therapies. Companies like Nippon Gases and Progases (UK) Ltd specialize in medical-grade CO₂, ensuring the supply meets stringent quality and safety standards in healthcare settings. With the growing healthcare sector in the UK, the demand for CO₂ in medical applications is expected to rise.

Metal Fabrication

The United Kingdom Carbon Dioxide Market also sees significant demand in the metal fabrication industry. CO₂ is used in welding, cutting, and other metalworking processes. With increasing manufacturing activities in sectors such as automotive and construction, companies like Tata Chemicals Europe Limited and Air Liquide UK Ltd are key suppliers of CO₂ for the growing metal fabrication industry.

Other Applications

CO₂ is used in various other applications, including chemical production, water treatment, and fire suppression. These niche markets contribute to the consistent demand for CO₂ in the UK, as industries continue to rely on carbon dioxide in specialized processes.

Market Dynamics

SWOT Analysis

Strengths

  • Strong infrastructure for CO₂ production and recovery.
  • Diversified applications across industries, ensuring consistent demand.
  • Leading companies with a robust market presence and experience.

Weaknesses

  • Reliance on a limited number of CO₂ production sources such as ammonia and ethyl alcohol.
  • Environmental concerns regarding emissions from traditional production methods.

Opportunities

  • Innovations in carbon capture, utilization, and storage (CCUS) technologies.
  • Growing demand for sustainable and bio-based CO₂ solutions.
  • Increased focus on sustainability in industrial applications.

Threats

  • Strict environmental regulations limiting emissions from CO₂ production.
  • Supply chain disruptions due to global geopolitical or economic factors.
  • Potential competition from alternative gases or substitutes in certain applications.

Porter’s Five Forces Analysis

  • Threat of New Entrants: High capital investment and stringent regulatory requirements create significant barriers to entry.
  • Bargaining Power of Suppliers: The limited sources of CO₂ give suppliers a moderate level of power, particularly in specialized applications.
  • Bargaining Power of Buyers: As demand grows across multiple sectors, buyers benefit from a range of suppliers but expect consistent quality and supply.
  • Threat of Substitutes: Emerging alternatives in specific applications could challenge traditional CO₂ usage in the long run.
  • Industry Rivalry: Intense competition among established players such as BOC Limited (Linde), Air Products PLC, and Air Liquide UK Ltd drives innovation and price competitiveness.

Regional Insights

Urban centers like London, Manchester, and Birmingham are key demand drivers for CO₂ in the UK due to their high concentration of industries and infrastructure. However, rural areas are also experiencing growth as industrial activities extend beyond metropolitan regions. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing their supply chains to meet regional demand variations and ensure efficient delivery across the country.

Competitive Landscape

The United Kingdom Carbon Dioxide Market is dominated by major players such as Ensus UK Limited, Yara International ASA, Air Liquide UK Ltd, Air Products PLC, and BOC Limited (Linde). These companies are focusing on technological advancements, sustainability initiatives, and strategic partnerships to expand their market presence. Collaboration between industry players and investment in carbon capture technologies are key strategies to address the growing demand for CO₂ while ensuring environmental compliance.