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 in various industries such as food and beverages, medical applications, and metal fabrication. The United Kingdom carbon dioxide market's trajectory is shaped by advancements in carbon capture technologies, regulatory frameworks, and the adoption of sustainable production methods.

In this blog post, we’ll explore the key segments of the United Kingdom carbon dioxide market, assess its production dynamics, and highlight the role of leading companies driving market growth.

Key Market Segmentation by Source

Ammonia

Ammonia production is a primary source of CO₂ in the United Kingdom carbon dioxide market, as CO₂ is a by-product of ammonia manufacturing. This process is essential for industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited have invested in advanced recovery systems to enhance CO₂ capture and ensure a sustainable supply in the United Kingdom carbon dioxide market.

Ethyl Alcohol

The fermentation of ethyl alcohol produces significant volumes of CO₂, primarily used in the food and beverage industry. Bio-based CO₂ from this source is gaining traction as a cleaner alternative to fossil-fuel-derived carbon dioxide. As the demand for biofuels and alcoholic beverages continues to grow, ethyl alcohol production is expected to play a pivotal role in the United Kingdom carbon dioxide market.

Substitute Natural Gas (SNG)

SNG processes also contribute to the United Kingdom carbon dioxide market's supply chain, particularly for industrial applications. Companies such as BOC Limited (Linde) are developing innovative solutions to capture CO₂ efficiently from SNG processes while reducing emissions.

Market Segmentation by Production

Biological Production

Biological methods, including fermentation and anaerobic digestion, are gaining prominence in the United Kingdom carbon dioxide market. These methods are not only more sustainable but also reduce environmental impact compared to traditional processes. Bio-based CO₂ production is particularly relevant in industries focused on reducing their carbon footprint. Ensus UK Limited, with its bioethanol production, plays a pivotal role in biological CO₂ generation in the UK.

Combustion Production

Combustion remains a significant method of CO₂ production in the United Kingdom carbon dioxide market. However, it faces challenges due to environmental concerns. Companies like Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to reduce emissions and enhance the efficiency of CO₂ recovery.

Key Market Segmentation by End Use

Food and Beverages

The food and beverages industry is the largest consumer of CO₂ in the United Kingdom carbon dioxide market. Carbon dioxide is used in carbonated beverages, food preservation, and packaging. With the UK’s vibrant food and drink sector growing steadily, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on sustainable CO₂ solutions to meet rising demand in this sector.

Oil and Gas

In the oil and gas industry, CO₂ is widely used for enhanced oil recovery (EOR) processes. While the demand for EOR applications may decline as the UK transitions to renewable energy, companies such as Air Products PLC continue to support this segment by providing high-quality CO₂ for industrial processes in the United Kingdom carbon dioxide market.

Medical Applications

In the medical field, CO₂ is essential for surgeries, respiratory therapies, and other applications. The growing healthcare sector in the UK, coupled with advancements in medical technologies, is expected to boost demand for medical-grade CO₂ over the coming years. Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂ in the United Kingdom carbon dioxide market.

Metal Fabrication

The use of CO₂ in metal fabrication processes, including welding and cutting, remains significant in the United Kingdom carbon dioxide market. As manufacturing activities in sectors like automotive and construction expand, companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd are expected to play a critical role in meeting industrial CO₂ requirements.

Other Applications

Additional applications of CO₂ include water treatment, fire suppression, and chemical production. These diverse applications contribute to consistent demand for CO₂ across various sectors in the United Kingdom carbon dioxide market.

Market Dynamics

SWOT Analysis

Strengths

• Established infrastructure for CO₂ production and distribution in the United Kingdom carbon dioxide market.
• Strong presence of key players offering diverse solutions to meet demand.
• Increasing demand for CO₂ across multiple industrial sectors.

Weaknesses

• Reliance on a few primary CO₂ sources like ammonia and ethyl alcohol.
• Environmental concerns related to traditional CO₂ production methods.

Opportunities

• Advancements in carbon capture and utilization technologies.
• Growing interest in bio-based CO₂ production methods, which align with sustainability goals.
• Increased focus on sustainability and circular economy initiatives within the United Kingdom carbon dioxide market.

Threats

• Stringent environmental regulations on emissions and production processes.
• Supply chain disruptions due to geopolitical or economic factors.
• Competition from alternative gases and substitutes for CO₂ in specific applications.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital requirements and regulatory barriers limit new entrants to the United Kingdom carbon dioxide market.
• Bargaining Power of Suppliers: Limited CO₂ sources give suppliers moderate power in the United Kingdom carbon dioxide market.
• Bargaining Power of Buyers: Buyers benefit from multiple suppliers but demand consistent quality and reliable delivery.
• Threat of Substitutes: Emerging alternatives such as nitrogen or hydrogen in specific applications could pose a long-term threat to CO₂ usage.
• Industry Rivalry: Intense competition among established players drives innovation and cost efficiency in the United Kingdom carbon dioxide market.

Regional Insights

Urban centers like London, Birmingham, and Manchester dominate CO₂ demand due to their industrial concentration. However, rural areas are witnessing growth as industries expand outside metropolitan regions. Companies such as BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chain management to balance regional demand and production effectively across the United Kingdom carbon dioxide market.

Competitive Landscape

The United Kingdom carbon dioxide market is highly competitive, with several key players committed to innovation and sustainability. Prominent companies include:

• Ensus UK Limited: Focuses on bioethanol production, contributing to biological CO₂ generation.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions for the food and beverage sector.
• Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for metal fabrication and other applications.
• Yara International ASA: Operates advanced CO₂ recovery systems in ammonia plants.
• Air Products PLC: Pioneers carbon capture and storage technologies for sustainable CO₂ production.
• BOC Limited (Linde): Offers diverse CO₂ solutions for industrial and medical applications.
• Air Liquide UK Ltd: Invests in sustainable CO₂ production and distribution technologies.
• Nippon Gases: Supplies high-quality CO₂ for medical and industrial sectors.
• Progases (UK) Ltd: Focuses on meeting specific CO₂ requirements for various industries.

These companies are actively investing in technology, expanding their product portfolios, and focusing on sustainability to maintain a competitive edge in the evolving United Kingdom carbon dioxide market.