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 CO₂ in various industries such as food and beverages, medical applications, and metal fabrication. The market's trajectory is influenced 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, assesses its production dynamics, and highlights the role of leading companies in the sector.

Key Market Segmentation by Source

Ammonia

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

Ethyl Alcohol

The fermentation of ethyl alcohol produces significant volumes of CO₂, mainly used in the food and beverage industry. Bio-based CO₂ from this source is gaining traction as a cleaner alternative to fossil-fuel-derived CO₂. BioCarbonics Ltd. is a key player in utilizing bio-based production methods to meet growing industry demand.

Substitute Natural Gas (SNG)

SNG processes also contribute to the United Kingdom carbon dioxide market. Companies such as BOC Limited (Linde) are developing innovative solutions to capture CO₂ efficiently from SNG processes while reducing emissions, catering to the demand across various industrial applications.

Market Segmentation by Production

Biological Production

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

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 CO₂ recovery efficiency.

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.

Oil and Gas

CO₂ is widely used in enhanced oil recovery (EOR) processes within the oil and gas sector. Although demand for EOR applications may decline as the UK transitions to renewable energy, companies like Air Products PLC continue to support this segment by providing high-quality CO₂ for industrial processes.

Medical Applications

In the medical field, CO₂ is essential for surgeries, respiratory therapies, and other applications. Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂, ensuring compliance with strict quality and safety standards, thereby contributing to the United Kingdom carbon dioxide market.

Metal Fabrication

CO₂ is used in welding and cutting processes within the metal fabrication industry. 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 the CO₂ needs of the metal industry.

Other Applications

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

Market Dynamics

SWOT Analysis

Strengths

• Well-established infrastructure for CO₂ production and distribution in the United Kingdom carbon dioxide market.
• Strong presence of key players offering diverse solutions across industries.
• Growing demand from industrial sectors, particularly food and beverages.

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.
• Increased focus on sustainable and bio-based CO₂ production methods.
• Rising demand for CO₂ solutions in various industrial sectors such as medical and metal fabrication.

Threats

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

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital requirements and regulatory barriers limit new entrants into the United Kingdom carbon dioxide market.
• Bargaining Power of Suppliers: Limited CO₂ sources give suppliers moderate power.
• Bargaining Power of Buyers: Buyers benefit from multiple suppliers but demand high-quality CO₂ and reliable delivery.
• Threat of Substitutes: Emerging alternatives may challenge traditional CO₂ usage in specific applications.
• Industry Rivalry: Established companies and continuous innovation drive intense competition.

Regional Insights

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

Competitive Landscape

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

• Ensus UK Limited: Specializes in bioethanol production, contributing significantly to biological CO₂ generation.
• BioCarbonics Ltd.: Focuses on providing bio-based CO₂ solutions for the food and beverage industry.
• Tata Chemicals Europe Limited: Supplies industrial-grade CO₂ for metal fabrication and other applications.
• Yara International ASA: Utilizes advanced CO₂ recovery systems in ammonia plants to ensure sustainability.
• Air Products PLC: Pioneers in carbon capture and storage technologies for sustainable CO₂ production.
• BOC Limited (Linde): Offers diverse CO₂ solutions for industrial, medical, and food-grade applications.
• Air Liquide UK Ltd: Invests in sustainable CO₂ production and distribution technologies to meet demand.
• Nippon Gases: A key supplier of medical-grade CO₂, supporting healthcare applications in the UK.
• Progases (UK) Ltd: Focuses on providing high-quality CO₂ for industrial applications.