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 is driven by the increasing importance of carbon dioxide across various industries, including food and beverages, medical applications, and metal fabrication. The adoption of sustainable production techniques, advancements in carbon capture technologies, and evolving regulatory frameworks will shape the future of the United Kingdom carbon dioxide market.

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

Key Market Segmentation by Source

Ammonia

Ammonia production is one of the primary sources of CO₂ in the United Kingdom. CO₂ is a by-product of ammonia manufacturing, which is essential for industries requiring food-grade carbon dioxide. Companies such as Yara International ASA and Tata Chemicals Europe Limited focus on advanced CO₂ recovery systems, ensuring a sustainable and reliable supply of CO₂.

Ethyl Alcohol

The fermentation of ethyl alcohol, particularly in the beverage and biofuel industries, is another significant source of CO₂. Bio-based CO₂ from this process is increasingly in demand as a cleaner alternative to fossil-fuel-derived CO₂. BioCarbonics Ltd. is a key player in leveraging bio-based production methods to support the expanding demand for carbon dioxide in the United Kingdom.

Substitute Natural Gas (SNG)

SNG processes are another source of CO₂ in the United Kingdom. As part of the broader energy transition efforts, companies like BOC Limited (Linde) are developing solutions to capture CO₂ from SNG processes and reduce environmental impact while maintaining industrial CO₂ supply.

Market Segmentation by Production

Biological Production

Biological production methods, such as fermentation and anaerobic digestion, are gaining prominence in the United Kingdom carbon dioxide market. These eco-friendly processes produce CO₂ with reduced environmental impact. Ensus UK Limited, with its bioethanol production, plays a vital role in biological CO₂ generation, contributing to sustainability goals.

Combustion Production

Combustion remains a traditional method of CO₂ production, particularly in industrial and energy sectors. However, this process is increasingly facing challenges due to environmental concerns. Leading 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 beverage industry is the largest consumer of CO₂ in the United Kingdom. CO₂ is used in carbonated beverages, food preservation, and packaging. With the expansion of the UK food and drink sector, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on sustainable CO₂ production to meet the growing demand for high-quality food-grade CO₂.

Oil and Gas

CO₂ is used in enhanced oil recovery (EOR) processes in the oil and gas industry. While the UK is transitioning to renewable energy sources, EOR remains an important application. Companies such as Air Products PLC continue to provide CO₂ for this sector, ensuring its efficient use in industrial processes.

Medical Applications

In the medical field, CO₂ is essential for various applications such as surgeries, anesthesia, and respiratory therapies. Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂, ensuring compliance with strict safety and quality standards required for medical use.

Metal Fabrication

In the metal fabrication industry, CO₂ is widely used in welding and cutting processes. As manufacturing activities expand in the UK, particularly in the automotive and construction sectors, companies like Tata Chemicals Europe Limited and Air Liquide UK Ltd are set to play a crucial role in supplying CO₂ to meet industrial demand.

Other Applications

CO₂ is also used in water treatment, fire suppression, and chemical production. These diverse applications contribute to consistent demand across various sectors, supporting the overall growth of the United Kingdom carbon dioxide market.

Market Dynamics

SWOT Analysis

Strengths

• Established infrastructure for CO₂ production and distribution in the United Kingdom.
• Strong presence of leading companies offering diverse CO₂ solutions.
• Increasing demand from key industries such as food and beverages, oil and gas, and medical applications.

Weaknesses

• Heavy reliance on a few primary sources of CO₂, including ammonia and ethyl alcohol.
• Environmental concerns associated with traditional CO₂ production methods.

Opportunities

• Technological advancements in carbon capture and utilization (CCU).
• Growing interest in bio-based CO₂ production and sustainable methods.
• Rising demand for CO₂ in medical and food-grade applications.

Threats

• Stringent environmental regulations governing CO₂ emissions.
• Potential disruptions in the supply chain due to geopolitical or economic factors.
• The increasing competition from alternative gases and substitutes.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investments and regulatory hurdles create barriers to entry for new competitors in the United Kingdom carbon dioxide market.
• Bargaining Power of Suppliers: The limited number of CO₂ production sources gives suppliers moderate bargaining power.
• Bargaining Power of Buyers: Buyers benefit from a variety of CO₂ suppliers but demand high quality and reliable delivery.
• Threat of Substitutes: While alternative gases and substitutes may emerge, CO₂ remains essential for many industrial processes.
• Industry Rivalry: The presence of established players like BOC Limited (Linde), Air Liquide UK Ltd, and Yara International ASA results in intense competition within the market.

Regional Insights

The demand for CO₂ in urban centers such as London, Birmingham, and Manchester is driven by industrial concentration and infrastructure development. However, regional demand is also growing as industries expand beyond metropolitan areas. Leading companies like Air Liquide UK Ltd and BOC Limited (Linde) are optimizing their supply chain strategies to ensure balanced demand and supply of CO₂ across the UK.

Competitive Landscape

The United Kingdom carbon dioxide market is competitive, with several key players at the forefront of innovation and sustainability. Leading companies include:

• Ensus UK Limited: Specializes in bioethanol production, contributing to biological CO₂ generation.
• BioCarbonics Ltd.: Focuses on bio-based CO₂ solutions, particularly in the food and beverage industry.
• Tata Chemicals Europe Limited: Supplies industrial-grade CO₂ for applications such as metal fabrication and chemical production.
• Yara International ASA: Operates advanced CO₂ recovery systems in ammonia production.
• Air Products PLC: A leader in providing CO₂ for industrial applications, with a focus on carbon capture technologies.
• BOC Limited (Linde): Supplies CO₂ for a wide range of applications, including food-grade and medical uses.
• Air Liquide UK Ltd: A key player in sustainable CO₂ production, leveraging advanced technologies in CCU.
• Nippon Gases: Specializes in medical-grade CO₂ and industrial applications.
• Progases (UK) Ltd: Provides specialized CO₂ solutions for various industries.