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 importance of carbon dioxide in several industries, including food and beverages, medical applications, and metal fabrication. The trajectory of the United Kingdom carbon dioxide market is driven by advancements in carbon capture technologies, regulatory frameworks, and the adoption of sustainable production methods.

This blog post explores the key segments of the United Kingdom carbon dioxide market, its production dynamics, and highlights the role of leading companies.

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, it plays a significant role in meeting industrial CO₂ requirements. Companies like Yara International ASA and Tata Chemicals Europe Limited are improving CO₂ recovery systems to ensure a sustainable supply of carbon dioxide for various sectors.

Ethyl Alcohol

The fermentation of ethyl alcohol produces substantial volumes of CO₂, which is crucial for the food and beverage industries. This bio-based source of CO₂ is becoming increasingly popular as a cleaner alternative to fossil-fuel-derived carbon dioxide. BioCarbonics Ltd. is among the key players in producing bio-based CO₂ solutions for a wide range of applications.

Substitute Natural Gas (SNG)

SNG processes contribute to CO₂ supply, especially for industrial applications in the United Kingdom carbon dioxide market. Companies like BOC Limited (Linde) are working on efficient CO₂ recovery technologies to reduce emissions while maintaining a stable supply of CO₂.

Market Segmentation by Production

Biological Production

Biological CO₂ production, such as fermentation and anaerobic digestion, is gaining ground in the United Kingdom carbon dioxide market. This eco-friendly production method aligns with sustainability goals and reduces environmental impact. Companies like Ensus UK Limited are contributing to this growth by providing bioethanol-derived CO₂.

Combustion Production

While combustion remains a significant method for CO₂ production, its environmental concerns are driving the need for more sustainable practices. Companies such as Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to reduce emissions and enhance CO₂ production efficiency.

Key Market Segmentation by End Use

Food and Beverages

The food and beverage industry is the largest consumer of CO₂ in the United Kingdom carbon dioxide market. CO₂ is widely used for carbonated drinks, food preservation, and packaging. With the growth of the UK food and drink sector, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on providing sustainable CO₂ solutions to meet rising demand.

Oil and Gas

In the oil and gas industry, CO₂ is used for enhanced oil recovery (EOR) processes. While the UK is transitioning toward renewable energy, CO₂ continues to play an essential role in extending the life of existing oil fields. Companies like Air Products PLC continue to supply CO₂ for EOR and other industrial applications.

Medical Applications

CO₂ is indispensable in medical applications, such as surgeries and respiratory therapies. The growing healthcare sector in the UK is driving the demand for medical-grade CO₂. Companies like Nippon Gases and Progases (UK) Ltd are key players in the medical CO₂ supply chain, ensuring the availability of high-quality CO₂ for medical uses.

Metal Fabrication

CO₂ is widely used in welding and cutting processes in the metal fabrication industry. With growing manufacturing activities, particularly in automotive and construction sectors, demand for CO₂ in metal fabrication will rise. Tata Chemicals Europe Limited and Air Liquide UK Ltd are instrumental in supplying CO₂ to meet industrial demand.

Other Applications

Apart from the primary sectors, CO₂ is used in chemical production, water treatment, and fire suppression systems. These diverse applications help maintain a consistent level of demand for CO₂ across various industries in the United Kingdom carbon dioxide market.

Market Dynamics

SWOT Analysis

Strengths

• Strong infrastructure supporting CO₂ production and distribution.
• Diverse applications across industries, ensuring stable demand.
• Key players with expertise in CO₂ recovery technologies and sustainable practices.

Weaknesses

• Reliance on a few primary sources of CO₂, such as ammonia and ethyl alcohol.
• Environmental concerns related to combustion-based CO₂ production.

Opportunities

• Advancements in carbon capture and utilization (CCU) technologies.
• Increased demand for bio-based CO₂ production methods.
• Growing focus on sustainability and circular economy principles.

Threats

• Stringent regulations governing CO₂ emissions.
• Supply chain disruptions caused by geopolitical and economic factors.
• Competition from alternative gases and substitutes.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital requirements and regulatory barriers limit market entry.
• Bargaining Power of Suppliers: Limited CO₂ sources give suppliers a moderate level of power.
• Bargaining Power of Buyers: Buyers benefit from multiple suppliers but demand high-quality CO₂ and reliable delivery.
• Threat of Substitutes: Emerging alternatives could pose a long-term threat to traditional CO₂ usage.
• Industry Rivalry: Intense competition among established players drives innovation and cost-effectiveness.

Regional Insights

Urban centers like London, Manchester, and Birmingham dominate CO₂ demand in the United Kingdom carbon dioxide market. However, rural areas are seeing increased growth as industries expand outside metropolitan regions. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chains to meet regional demands efficiently.

Competitive Landscape

The United Kingdom carbon dioxide market is highly competitive, with key players focusing on technological advancements and sustainability. Leading companies include:

• Ensus UK Limited: Specializes in bioethanol production, contributing to bio-based CO₂ generation.
• BioCarbonics Ltd.: Known for providing eco-friendly CO₂ solutions, especially for the food and beverage industry.
• Tata Chemicals Europe Limited: Offers industrial-grade CO₂ solutions for applications like metal fabrication.
• Yara International ASA: A leader in CO₂ recovery from ammonia plants.
• Air Products PLC: A key player in advancing carbon capture technologies for CO₂ production.
• BOC Limited (Linde): Supplies CO₂ for a wide range of industrial and medical uses.
• Air Liquide UK Ltd: Invests heavily in sustainable CO₂ production methods.
• Nippon Gases: Focuses on the medical sector, providing high-quality CO₂.
• Progases (UK) Ltd: Supplies CO₂ for industrial applications, focusing on specific customer needs.