The United Kingdom carbon dioxide (CO2) market has been growing steadily in recent years, primarily driven by demand across various industrial applications. In 2024, the market attained a volume of approximately 725.8 KMT (kilotonnes). CO2 is used in a range of industries, including food and beverages, chemicals, healthcare, and more. It plays a crucial role in the carbonation of drinks, in refrigeration, as a fire extinguisher agent, and as an essential element in the production of chemicals and pharmaceuticals.
As of 2024, the United Kingdom carbon dioxide market is valued at 725.8 KMT in terms of volume. This size is expected to grow steadily at a compound annual growth rate (CAGR) of 1.5% between 2025 and 2034. By the end of this period, the market is anticipated to reach a volume of 840.5 KMT. The demand for CO2 is increasing in various sectors, particularly in the food and beverage industry, where it is used for carbonation, preservation, and transportation of products.
Several key trends are shaping the United Kingdom carbon dioxide market:
Sustainability Focus: With the rising demand for environmentally sustainable practices, many companies are seeking ways to reduce carbon emissions and develop CO2 recovery methods. As a result, the market is witnessing growth in the development of carbon capture, utilization, and storage (CCUS) technologies.
Industrial Use Expansion: The growth of CO2 usage in the chemical and pharmaceutical industries for the production of various chemicals, including urea, is fueling market growth.
Food and Beverage Sector Growth: The increasing demand for carbonated beverages and the need for CO2 in food preservation are important factors that continue to drive the market, especially in the United Kingdom’s food and beverage sector.
Healthcare and Medical Applications: The medical sector also plays a vital role, particularly in respiratory treatments where CO2 is used in medical gas mixtures.
The market is expected to grow at a CAGR of 1.5% between 2025 and 2034, reflecting a stable growth trajectory. Factors such as the increasing demand for CO2 in various industries, the need for efficient cooling and refrigeration systems, and the growing adoption of CO2-based technologies are contributing to this growth. Additionally, as sustainability becomes more important, the market will continue to explore cleaner production methods, driving innovation and expansion.
The UK’s CO2 market is heavily influenced by industrial demand and technological advancements in carbon capture and storage (CCS). The production of CO2 is often linked to industrial processes such as ammonia production, natural gas processing, and ethanol manufacturing. The shift toward using CO2 for sustainable applications, such as greenhouses and biofuel production, is expected to enhance market prospects over the forecast period.
The United Kingdom carbon dioxide market is poised to continue expanding, with a projected market volume of 840.5 KMT by 2034. The growth rate will be supported by technological advancements, rising industrial demand, and innovations in CO2 recovery and recycling processes. As sustainability continues to be a key focus, the market will likely see an increased investment in technologies that mitigate the carbon footprint of CO2 production and consumption.
Several companies play a crucial role in shaping the competitive landscape of the UK’s CO2 market. These include:
Others: These companies, along with others, are working towards increasing CO2 production efficiency, developing sustainable solutions, and meeting the growing demand for carbon dioxide across various industries.