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 growth reflects the increasing demand for carbon dioxide across various industries, including food and beverages, medical applications, and metal fabrication. Advancements in carbon capture technologies and a push for sustainable production practices are pivotal in shaping the future of the United Kingdom carbon dioxide market.

This blog post explores the key segments, production methods, end-use industries, and leading companies influencing the United Kingdom carbon dioxide market.

Key Market Segmentation by Source

Ammonia

Ammonia production is a primary source of CO₂ in the United Kingdom carbon dioxide market. CO₂ is a by-product of ammonia manufacturing, essential for various applications such as food-grade CO₂ production. Companies like Yara International ASA and Tata Chemicals Europe Limited have developed advanced recovery systems that enhance CO₂ capture, ensuring a sustainable supply for the market.

Ethyl Alcohol

Ethyl alcohol fermentation produces CO₂, primarily for the food and beverage industry. The bio-based CO₂ derived from this process is gaining popularity as a cleaner alternative to fossil-fuel-based sources. BioCarbonics Ltd. is playing a significant role in promoting bio-based production methods to cater to the growing demand for sustainable CO₂ in the United Kingdom carbon dioxide market.

Substitute Natural Gas (SNG)

SNG processes contribute to the United Kingdom carbon dioxide market by offering an alternative source of CO₂ for industrial applications. BOC Limited (Linde) is one of the companies driving innovations in CO₂ capture from SNG, helping reduce emissions while maintaining a stable supply of CO₂ for various sectors.

Market Segmentation by Production

Biological Production

Biological methods like fermentation and anaerobic digestion are increasingly gaining traction in the United Kingdom carbon dioxide market. These eco-friendly processes offer industries a sustainable option to reduce environmental impact. Ensus UK Limited, with its bioethanol production, plays a vital role in CO₂ generation via biological processes, supporting the UK’s growing focus on renewable solutions.

Combustion Production

Combustion remains a significant method for CO₂ production. However, this method faces environmental challenges due to CO₂ emissions. Leading companies such as Air Liquide UK Ltd and Air Products PLC are at the forefront of developing carbon capture, utilization, and storage (CCUS) technologies to reduce emissions while maintaining a reliable CO₂ supply for industrial processes in the United Kingdom carbon dioxide market.

Key Market Segmentation by End Use

Food and Beverages

The food and beverages industry is one of the largest consumers of CO₂ in the United Kingdom carbon dioxide market. Carbon dioxide is vital for carbonated drinks, food packaging, and preservation. As the UK food and drink sector continues to grow, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on providing sustainable CO₂ solutions to meet the increasing demand for food-grade CO₂.

Oil and Gas

In the oil and gas industry, CO₂ is used in enhanced oil recovery (EOR) processes. Despite the UK’s shift toward renewable energy, CO₂ remains crucial for EOR applications. Companies such as Air Products PLC provide high-quality CO₂ for this sector, supporting efforts to maximize oil field recovery while adhering to sustainability targets.

Medical Applications

The United Kingdom carbon dioxide market also serves the healthcare industry, where CO₂ is used in surgeries, anesthesia, and respiratory therapies. Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂, ensuring that the healthcare sector receives CO₂ that meets the stringent quality and safety standards required for medical applications.

Metal Fabrication

CO₂ is widely used in the metal fabrication industry for welding and cutting. As industrial manufacturing, particularly in automotive and construction, expands, the demand for CO₂ in this sector is expected to rise. Tata Chemicals Europe Limited and Air Liquide UK Ltd are critical players in providing CO₂ solutions to meet the needs of the metal fabrication industry.

Other Applications

Additional applications for CO₂ include its use in chemical production, water treatment, and fire suppression systems. These varied uses contribute to stable demand for CO₂ in the United Kingdom carbon dioxide market, supporting continued growth across multiple industries.

Market Dynamics

SWOT Analysis

Strengths

• Established infrastructure and reliable CO₂ production.
• Broad and diverse applications across several industries.
• Strong presence of market leaders like Air Liquide UK Ltd and BOC Limited (Linde), ensuring stable supply.

Weaknesses

• Dependency on a few key sources of CO₂, such as ammonia and ethyl alcohol.
• Environmental impact of traditional CO₂ production methods.

Opportunities

• Advancements in carbon capture technologies and CCUS.
• Increasing demand for bio-based CO₂ from renewable sources.
• Rising awareness of sustainability and green solutions across industries.

Threats

• Stringent environmental regulations on emissions and production methods.
• Market competition from alternative gases and substitutes.
• Potential supply chain disruptions due to external factors such as geopolitical issues.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital costs and stringent regulations act as barriers to entry.
• Bargaining Power of Suppliers: The limited number of primary CO₂ sources gives suppliers moderate power.
• Bargaining Power of Buyers: Buyers enjoy a variety of suppliers but require high-quality, consistent CO₂ delivery.
• Threat of Substitutes: The rise of alternative gases in certain applications may present a long-term challenge.
• Industry Rivalry: The competitive landscape is driven by major players such as Air Products PLC, BOC Limited (Linde), and Air Liquide UK Ltd, pushing for innovation and cost efficiency.

Regional Insights

Urban centers like London, Manchester, and Birmingham are the primary hubs for CO₂ demand due to their industrial concentration. However, the growing industrial base in rural areas across the UK also contributes to increased CO₂ demand. Companies such as BOC Limited (Linde) and Air Liquide UK Ltd are optimizing their distribution and supply chains to manage demand across regions efficiently.

Competitive Landscape

The United Kingdom carbon dioxide market is characterized by a strong presence of key players who are focusing on sustainability and innovation. Notable companies include:

• Ensus UK Limited: Leader in bioethanol production, contributing to biological CO₂ generation.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions for the food and beverage industry.
• Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for metal fabrication and other sectors.
• Yara International ASA: A key player in ammonia-based CO₂ production with advanced CO₂ recovery systems.
• Air Products PLC: Innovator in carbon capture and storage technologies for CO₂ production.
• BOC Limited (Linde): Offers diverse CO₂ solutions for industrial, medical, and food-grade applications.
• Air Liquide UK Ltd: Pioneers in sustainable CO₂ production methods, investing heavily in CCUS technologies.
• Nippon Gases: Supplies high-quality CO₂ for medical and industrial use.
• Progases (UK) Ltd: Focused on meeting specific CO₂ requirements for various industrial sectors.