United Kingdom Carbon Dioxide Market Outlook
According to the report by Expert Market Research (EMR), the United Kingdom carbon dioxide (CO2) market was volume of 725.80 KMT in 2024. Fueled by the growing demand across diverse sectors, including the food and beverage industry, healthcare, and enhanced oil recovery operations, the United Kingdom carbon dioxide market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 1.50% between 2025 and 2034, reaching a projected volume of 842.32 KMT by 2034.
Carbon dioxide, a colorless, odorless gas, is primarily produced through the combustion of fossil fuels and the fermentation of organic matter. It finds widespread use in industries ranging from food preservation and carbonated beverages to fire extinguishing systems, medical applications, and oil recovery. Its applications are diverse, and with increasing industrial activities and environmental concerns, its demand is expected to maintain an upward trajectory in the coming years.
The rising focus on carbon capture, utilization, and storage (CCUS) technologies, alongside stringent environmental regulations, is expected to shape the CO2 market landscape. With growing concerns over climate change and global warming, CO2 emission regulations are becoming increasingly important, driving innovation in CO2 capture processes that can be utilized across various industries.
Driving Factors in the UK CO2 Market
Several factors are propelling the growth of the United Kingdom carbon dioxide market. Among the most influential are the growing demand in the food and beverage sector, healthcare applications, and oil and gas industry.
Food and Beverage Industry Demand: The food and beverage sector is one of the largest consumers of carbon dioxide in the United Kingdom, with CO2 playing an essential role in carbonation, refrigeration, and food preservation. The rising consumer preference for carbonated drinks such as sodas, sparkling water, and beers is driving demand for CO2. Additionally, CO2 is crucial in the food packaging process, where it is used to create modified atmospheric packaging (MAP) to prolong shelf life and preserve food quality. The rapid urbanisation and changing consumer tastes, including increased consumption of ready-to-eat and convenience foods, are expected to further amplify demand in this sector.
The increasing preference for convenience and ready-to-serve foods is leading to higher adoption of CO2 as a preservative, in addition to its use in packaging. This is crucial in extending the shelf life of products such as fresh meat, poultry, seafood, and bakery items, further driving the demand for United Kingdom carbon dioxide market.
Healthcare and Medical Applications: The healthcare industry is another significant driver of the United Kingdom CO2 market. Carbon dioxide is used in various medical applications, including as a respiratory stimulant, in the administration of anaesthesia, and in insufflation during minimally invasive surgeries. Its use in diagnostic testing, including capnography (measuring CO2 levels in the blood), also fuels the demand for CO2 in the medical sector.
Additionally, CO2 is used as a carrier gas in the pharmaceutical industry, particularly in the production of medicines, providing further support to the growing CO2 market. The advancements in medical technologies and the increasing demand for high-quality healthcare are expected to keep driving the growth in this segment.
Oil and Gas Industry: The oil and gas sector remains one of the most crucial United Kingdom carbon dioxide market, particularly for enhanced oil recovery (EOR) applications. CO2 is injected into oil reservoirs to increase pressure and improve oil extraction rates. With the depletion of easily accessible oil reserves, the need for EOR techniques has grown, and this trend is expected to continue in the coming decade, thus driving the CO2 demand in the United Kingdom.
The United Kingdom has several oil fields in the North Sea, and CO2 injection is an essential part of the oil recovery process. As companies strive to increase production from aging fields, CO2 remains a key element in improving efficiency and prolonging the lifespan of these oil reservoirs.
Industrial Applications: Beyond the key sectors of food, healthcare, and oil recovery, carbon dioxide is also used in a wide range of industrial applications, including in the manufacture of chemicals, as a solvent, and in the production of synthetic materials. CO2 is also essential in welding, where it is used in gas shielded welding processes, as well as in fire suppression systems.
With growing industrial activities in the United Kingdom, including expansions in manufacturing and chemical production, CO2 demand is anticipated to remain robust. The increasing use of CO2 in environmental and sustainability-related applications, such as carbon capture, utilization, and storage (CCUS), will likely stimulate further market growth.
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Emerging Trends in the United Kingdom Carbon Dioxide Market
Carbon Capture, Utilisation, and Storage (CCUS) Technologies: One of the most important trends driving change in the United Kingdom carbon dioxide market is the development and implementation of CCUS technologies. As the United Kingdom seeks to reduce its carbon emissions and meet climate targets, CCUS technologies are playing a critical role in enabling industries to capture CO2 emissions and either store or repurpose them.
With increasing government initiatives and investments to foster CCUS projects, CO2 that would traditionally be emitted into the atmosphere is now being captured and used in various applications. For example, captured CO2 is being utilized in the production of synthetic fuels, chemicals, and materials, which can help offset emissions. This trend is gaining significant traction in the United Kingdom as part of the government’s overall strategy to decarbonise industries and promote sustainability.
Sustainability and Green Alternatives: The rise in environmental awareness has also prompted significant interest in green alternatives to CO2 production. Technologies focused on reducing carbon emissions, including renewable energy, carbon capture, and sustainable production practices, are being increasingly integrated into businesses to curb environmental impact.
As industries and businesses align with stricter environmental regulations, there is a growing emphasis on reducing CO2 emissions at the source. This includes switching to cleaner and more sustainable energy sources, using CO2 in more innovative ways, and recycling captured carbon dioxide.
Government Policies and Regulations: The United Kingdom has implemented strict environmental regulations to reduce carbon emissions in line with international climate change agreements. These regulations encourage the development of green technologies, including carbon capture, and influence market dynamics.
The government’s ongoing efforts to achieve carbon neutrality by 2050 have already led to substantial investments in green technologies and renewable energy projects. Such regulatory pressure is likely to drive demand for United Kingdom carbon dioxide market solutions and foster innovation in CO2 management across different sectors, further enhancing market growth.
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
Despite the United Kingdom carbon dioxide market growth prospects, the carbon dioxide industry in the UK faces several challenges, which could impact its trajectory in the coming years.
- Supply Chain Constraints: Carbon dioxide is often produced as a byproduct of ammonia production or from natural gas processing. Any disruption in these upstream industries, such as raw material shortages or production halts, can affect the availability of CO2. Moreover, logistical challenges related to the transportation and storage of CO2 in the right quantities and at the correct pressure levels can lead to supply shortages, especially during peak demand periods like summer, when carbonated beverage consumption is high.
- Regulatory Pressures: The United Kingdom, along with many other countries, has implemented stringent regulations aimed at reducing greenhouse gas emissions. As United Kingdom carbon dioxide market is a significant greenhouse gas, the industry may face stricter regulatory frameworks that limit emissions or encourage a shift towards alternative technologies. While carbon capture and storage technologies could alleviate some of the pressures, the implementation of such technologies requires significant investment and time.
- Fluctuating Prices: The price of carbon dioxide is influenced by multiple factors, including raw material availability, energy costs, and regulatory policies. Any fluctuation in the price of raw materials or energy could result in price volatility in the CO2 market, potentially affecting profitability and pricing strategies for end-users across various industries.
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