United Kingdom Carbon Dioxide Market Outlook
According to the report by Expert Market Research (EMR), the UK carbon dioxide (CO2) market size attained a volume of 725.80 KMT in 2024. Driven by the increasing demand for CO2 in various industrial applications, particularly in the food and beverage sector, and the growing focus on environmental sustainability, the United Kingdom carbon dioxide market is projected to expand at a compound annual growth rate (CAGR) of 1.50% between 2025 and 2034, reaching a volume of 842.32 KMT by 2034.
Carbon dioxide is a colorless, odorless gas that is widely used in a range of industries. It is primarily utilized for enhanced oil recovery, food and beverage carbonation, and various industrial applications, such as refrigeration and chemical production. Additionally, CO2 plays a significant role in environmental control systems, such as the carbon capture and storage (CCS) technologies aimed at reducing greenhouse gas emissions. As the demand for CO2 continues to rise across multiple industries, the United Kingdom carbon dioxide market is set to experience sustained growth in the coming years.
The increasing consumption of CO2 in sectors like food processing, manufacturing, and environmental applications is driving the expansion of the market. With the rising focus on sustainable practices and the importance of carbon management, the demand for carbon dioxide is expected to further increase, making it a critical component in both industrial and environmental solutions.
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Rising Demand for CO2 in the Food and Beverage Industry
One of the key drivers of the United Kingdom carbon dioxide market is its extensive use in the food and beverage sector. Carbon dioxide is primarily used for carbonation in soft drinks, sparkling water, and alcoholic beverages such as beer. As consumer preferences for carbonated beverages continue to grow, the demand for CO2 is expected to rise correspondingly.
The food industry also uses CO2 for packaging purposes, specifically in modified atmosphere packaging (MAP), where it helps preserve the freshness of perishable goods by controlling the level of oxygen inside food packaging. The use of CO2 as a refrigerant in food transportation is another factor contributing to the market's growth. With the rise of convenience foods and ready-to-eat products, CO2 is increasingly becoming an essential component for food preservation and transportation, thereby driving demand in the food sector.
Environmental and Industrial Applications
In recent years, the United Kingdom has placed a greater emphasis on environmental sustainability, which has led to an increased focus on technologies that capture and store carbon dioxide. Carbon capture and storage (CCS) systems are used to capture CO2 emissions from industrial processes and store them underground or repurpose them in various applications, such as enhanced oil recovery or the production of synthetic fuels.
The growing demand for CO2 in CCS applications is driven by the United Kingdom’s commitment to achieving net-zero emissions by 2050. As the government introduces more stringent regulations on industrial emissions and encourages the adoption of low-carbon technologies, the need for CO2 management solutions such as CCS is expected to rise, positively impacting the CO2 market.
In addition to CCS, CO2 is used in various industrial processes, including the manufacturing of chemicals, plastics, and pharmaceuticals. It serves as a vital reactant in the production of urea, an essential component of fertilizers, and is used in the synthesis of other chemicals such as methanol and acetic acid. As these industries expand, the demand for CO2 in industrial processes will continue to grow.
Technological Advancements in CO2 Production
Advancements in CO2 production technologies are also playing a significant role in the growth of the United Kingdom carbon dioxide market. Traditional methods of CO2 production involve the extraction of the gas as a byproduct of natural gas processing, fermentation, and other industrial processes. However, with the rise of innovations in carbon capture technologies and sustainable CO2 production methods, the availability of CO2 is expected to increase.
The development of direct air capture (DAC) technology, which captures CO2 directly from the atmosphere, is another key factor driving growth in the market. DAC systems, although still in their nascent stages, hold great potential for the long-term scalability of CO2 production. As these technologies evolve and become more cost-effective, they will play a crucial role in meeting the growing demand for CO2 across various industries.
Regulatory Support for Sustainability Initiatives
The United Kingdom government has taken substantial steps toward environmental sustainability, with a primary focus on reducing greenhouse gas emissions and transitioning to a low-carbon economy. The UK government’s pledge to reach net-zero emissions by 2050 has led to a surge in demand for technologies that reduce carbon footprints, such as carbon capture and utilization systems.
This regulatory environment has fostered a market for CO2 in various applications aimed at mitigating climate change. By offering tax incentives, subsidies, and funding for CCS projects and other carbon management technologies, the UK government is encouraging industries to adopt practices that reduce their carbon emissions. These measures are expected to further boost the demand for CO2 in the country, especially in the context of industrial decarbonization and sustainable practices.
United Kingdom Carbon Dioxide Market Segmentation
The market can be divided based on source, production and End use.
Breakup by Source
- Ammonia
- Ethyl Alcohol
- Substitute Natural Gas and CCU
Breakup by Production
- Biological
- Combustion
Breakup by End Use
- Food and Beverages
- Oil and Gas
- Medical
- Metal Fabrication
- Others
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Ensus UK Limited
- BioCarbonics Ltd.
- Tata Chemicals Europe Limited
- Yara International ASA
- Air Products PLC
- BOC Limited (Linde)
- Air Liquide UK Ltd
- Nippon Gases
- Progases (UK) Ltd
- Others
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