The United Kingdom carbon dioxide (CO2) market plays a crucial role across various industries, including food and beverage, healthcare, manufacturing, and agriculture. CO2 is primarily used for carbonation in beverages, refrigeration, and as a key component in medical treatments. In 2024, the UK carbon dioxide market reached a volume of 725.8 KMT (thousand metric tons), and the market is projected to grow at a compound annual growth rate (CAGR) of 1.5% during the period from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. The growth is driven by the expanding demand for CO2 across different sectors, particularly the food and beverage industry, medical applications, and industrial uses.

United Kingdom Carbon Dioxide Market Size

In 2024, the UK carbon dioxide market attained a volume of 725.8 KMT, which showcases the substantial demand for CO2 within the country. This market size reflects the broad applications of CO2, from beverage carbonation to food preservation and medical use. The market is witnessing steady growth due to the increasing consumption of carbonated beverages and the expanding use of CO2 in various industrial and medical applications. By 2034, the market is expected to reach 840.5 KMT, marking a steady increase in demand driven by these industries.

United Kingdom Carbon Dioxide Market Trends

Several emerging trends are shaping the future of the UK carbon dioxide market, influencing its growth:

Sustainability and CO2 Capture: There is an increasing focus on sustainable CO2 production, especially through carbon capture and utilization (CCU) technologies. CO2 recycling and capturing techniques are gaining importance as industries aim to reduce their carbon footprint.

Food and Beverage Demand: The growing demand for carbonated drinks, including sodas, beers, and sparkling waters, continues to drive CO2 consumption in the food and beverage industry. Additionally, CO2 plays a significant role in food preservation and packaging, particularly in modified atmosphere packaging (MAP).

Medical Use of CO2: Carbon dioxide is increasingly utilized in healthcare for procedures such as cryotherapy, medical imaging, and respiratory treatments. As healthcare technology evolves, the demand for CO2 in medical applications continues to grow.

Industrial Applications: CO2 is crucial in various industrial applications, including refrigeration, enhanced oil recovery, and fire suppression systems. The industrial sector's need for CO2 will continue to fuel market expansion.

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United Kingdom Carbon Dioxide Market Segmentation

Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU

Production:
Biological
Combustion

End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others

United Kingdom Carbon Dioxide Market Growth

The growth of the United Kingdom carbon dioxide market is driven by several key factors:

Rising Demand in Food and Beverage: The UK food and beverage industry remains a dominant consumer of CO2, particularly in the carbonation of beverages. The increasing preference for carbonated drinks and the need for longer shelf life in packaged food are significant drivers of growth.

Expansion in Healthcare: The medical sector’s reliance on CO2 for respiratory support and cryotherapy is growing. As the demand for healthcare services increases, so does the use of CO2 in various therapeutic and diagnostic procedures.

Industrial Sector Growth: The industrial demand for CO2 in applications such as refrigeration, oil recovery, and fire suppression systems is expanding. The ongoing industrial development in the UK ensures that the demand for CO2 will remain robust.

Technological Advancements: The development of technologies to capture and recycle CO2 sustainably is helping to meet the growing demand for the gas without increasing emissions. Innovations in CO2 production and distribution are making the process more efficient and eco-friendly.

These factors are expected to lead to steady market growth, with the CO2 market volume in the UK projected to reach 840.5 KMT by 2034.

United Kingdom Carbon Dioxide Market Analysis

The UK carbon dioxide market is characterized by a complex set of factors that include sector-specific demand, supply chain dynamics, and sustainability initiatives. Key points to consider in the market analysis include:

Food and Beverage Dominance: The food and beverage industry remains the largest consumer of CO2 in the UK. This sector is particularly driven by the carbonation demand in soft drinks, beers, and other beverages.

Supply and Production Challenges: The supply of CO2 is often dependent on natural gas production, and disruptions in natural gas supply can impact CO2 availability. However, advancements in carbon capture and recycling technologies are helping to alleviate these supply issues by providing alternative sources of CO2.

Regulatory Pressures: The UK government’s push for sustainability and reduction in carbon emissions is impacting the CO2 industry. Companies are increasingly adopting green technologies for CO2 production, including carbon capture and utilization methods, to meet environmental goals.

Market Diversification: While food and beverage dominate, industrial and medical applications are expected to see growing demand, with CO2 playing an increasingly important role in refrigeration, oil recovery, and medical treatments.

United Kingdom Carbon Dioxide Market Forecast

The United Kingdom carbon dioxide market is expected to grow steadily over the forecast period, from 2025 to 2034. With a projected CAGR of 1.5%, the market will reach an estimated volume of 840.5 KMT by 2034. Key factors influencing this forecast include:

Continued Demand for Carbonated Beverages: The growing preference for carbonated beverages ensures sustained demand for CO2 in the food and beverage sector. Additionally, the expanding adoption of bottled and canned products will further drive the need for CO2.

Medical Sector Growth: CO2’s role in healthcare, including respiratory support and cryotherapy, is likely to increase. The medical sector’s growing demand for CO2 will contribute significantly to market expansion.

Technological Innovation: The development of new, sustainable CO2 production methods, such as carbon capture and utilization, will improve supply efficiency and help reduce emissions, further contributing to market growth.

Industrial Applications: The continued growth of industrial applications, particularly in refrigeration, oil recovery, and fire suppression, will further drive CO2 consumption in the UK.

Competitor Analysis

The United Kingdom carbon dioxide market is home to several key players that are leading the industry through innovation, production capabilities, and sustainable practices. These companies include:

Yara International ASA: Yara is a global leader in CO2 supply, with a strong presence in the UK market. They serve industries such as food and beverage, agriculture, and healthcare, with a focus on environmentally sustainable practices.

Air Products PLC: A major supplier of industrial gases, including CO2, Air Products has a significant presence in the UK market. The company focuses on providing eco-friendly CO2 solutions to industries such as healthcare, food, and industrial applications.

BOC Limited (Linde): BOC, a subsidiary of Linde, is a leading player in the UK CO2 market, supplying CO2 to food, healthcare, and industrial sectors. Their commitment to sustainability and energy-efficient production has strengthened their position in the market.

Air Liquide UK Ltd: Air Liquide is a major supplier of CO2 in the UK, offering solutions for healthcare, food processing, and industrial applications. The company emphasizes sustainable production practices and innovation.

Nippon Gases: Nippon Gases is a key CO2 supplier in the UK, serving a variety of industries, including food and beverage, healthcare, and manufacturing. The company focuses on sustainable CO2 production and application solutions.

• Progases (UK) Ltd: Progases provides CO2 for food and beverage industries, with a focus on quality and customer service. They are recognized for their eco-friendly solutions in CO2 production.

Others: Several smaller or emerging companies also contribute to the UK carbon dioxide market, providing specialized CO2 solutions to meet niche demands.

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