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.

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.

Key Market Segmentation by Source

Ammonia

Ammonia production remains a primary source of carbon dioxide in the United Kingdom carbon dioxide market. CO₂ is a by-product of ammonia manufacturing, crucial 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.

Ethyl Alcohol

The fermentation of ethyl alcohol generates significant volumes of CO₂, particularly used in the food and beverage industry. This bio-based CO₂ source aligns with the growing push toward sustainability. Companies such as BioCarbonics Ltd. are contributing to this trend by leveraging bio-based production methods to meet the rising demand in the United Kingdom carbon dioxide market.

Substitute Natural Gas (SNG)

SNG processes also play a role in CO₂ production in the UK, contributing to the carbon dioxide supply chain. With increasing efforts to transition to alternative fuel sources, SNG has emerged as a complementary CO₂ source for industrial applications. Companies such as BOC Limited (Linde) focus on capturing CO₂ efficiently from SNG processes to reduce emissions.

Market Segmentation by Production

Biological Production

Biological production methods, including fermentation and anaerobic digestion, are gaining momentum in the United Kingdom carbon dioxide market. These methods are more sustainable and reduce the environmental impact compared to traditional processes. Bio-based CO₂ production is particularly relevant for industries focusing on reducing their carbon footprint. Ensus UK Limited, with its bioethanol production, plays a pivotal role in generating bio-based CO₂.

Combustion Production

Combustion continues to be a significant method of CO₂ production. However, this process faces challenges due to the environmental concerns associated with emissions. Companies like Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to mitigate emissions while maintaining the efficiency of CO₂ recovery in the United Kingdom carbon dioxide market.

Key Market Segmentation by End Use

Food and Beverages

The food and beverages sector 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 expanding, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on providing sustainable CO₂ solutions to meet the rising demand for food-grade CO₂.

Oil and Gas

In the oil and gas sector, CO₂ is used in enhanced oil recovery (EOR) processes. While the demand for EOR applications may decrease as the UK transitions toward renewable energy, CO₂ continues to be critical for maintaining the efficiency of existing oil fields. Companies like Air Products PLC continue to supply CO₂ to the oil and gas industry for these purposes.

Medical Applications

CO₂ plays a vital role in medical applications, such as surgeries, respiratory therapies, and other healthcare needs. As the healthcare sector in the UK continues to expand, demand for medical-grade CO₂ is expected to grow. Companies like Nippon Gases and Progases (UK) Ltd supply high-quality CO₂ to meet the stringent requirements of the medical industry.

Metal Fabrication

CO₂ is widely used in metal fabrication processes, including welding and cutting. The United Kingdom carbon dioxide market sees consistent demand from the manufacturing sector, particularly in industries like automotive and construction. As the demand for fabricated metals grows, companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd play an essential role in meeting CO₂ requirements in metal fabrication.

Other Applications

In addition to the sectors mentioned above, CO₂ is used in applications such as chemical production, water treatment, and fire suppression systems. The diverse range of CO₂ applications across multiple industries ensures consistent demand in the United Kingdom carbon dioxide market.

Market Dynamics

SWOT Analysis

Strengths

• Established infrastructure for CO₂ production and distribution across the UK.
• A strong presence of key players offering diverse CO₂ solutions.
• Consistent demand from multiple industrial sectors.

Weaknesses

• Reliance on a limited number of CO₂ sources like ammonia and ethyl alcohol.
• Environmental challenges associated with traditional CO₂ production methods.

Opportunities

• Advancements in carbon capture and utilization technologies.
• Growing adoption of bio-based CO₂ production methods.
• Increased emphasis on sustainability and circular economy initiatives.

Threats

• Regulatory restrictions and environmental concerns regarding emissions.
• Supply chain disruptions due to economic or geopolitical factors.
• Rising competition from alternative gases and substitutes.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investment and stringent regulatory requirements act as barriers to entry in the United Kingdom carbon dioxide market.
• Bargaining Power of Suppliers: Limited CO₂ sources give suppliers a moderate level of power over prices and supply chain dynamics.
• Bargaining Power of Buyers: Buyers benefit from multiple suppliers but require consistent quality and delivery of CO₂.
• Threat of Substitutes: Emerging alternative gases could potentially disrupt CO₂'s usage in certain applications.
• Industry Rivalry: The UK carbon dioxide market sees intense competition among established players, driving innovation and price competitiveness.

Regional Insights

Urban centers such as London, Birmingham, and Manchester remain key demand drivers for CO₂ due to their high concentration of industries. However, rural areas are also experiencing growth as industries expand outside metropolitan regions. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chains to balance regional demand and production.

Competitive Landscape

The United Kingdom carbon dioxide market is highly competitive, with several key players dominating the market. Leading companies such as Ensus UK Limited, BioCarbonics Ltd., Tata Chemicals Europe Limited, Yara International ASA, Air Products PLC, BOC Limited (Linde), Air Liquide UK Ltd, Nippon Gases, and Progases (UK) Ltd are continuously innovating to meet the growing demand for CO₂ across various sectors. These companies are focusing on sustainability initiatives, carbon capture technologies, and expanding their market share through strategic partnerships, acquisitions, and product diversification.