The United Kingdom’s carbon dioxide (CO2) market is poised for steady growth in the coming years. With a volume of 725.8 KMT in 2024, the market is forecasted to expand at a compound annual growth rate (CAGR) of 1.5% from 2025 to 2034, reaching a projected volume of 840.5 KMT by 2034. This blog explores the key trends, market dynamics, and growth drivers shaping the UK carbon dioxide market, along with a detailed competitor analysis.
United Kingdom Carbon Dioxide Market Overview
The carbon dioxide market in the United Kingdom plays a crucial role in a variety of industries, including manufacturing, food and beverage, healthcare, and energy. CO2 is essential for applications such as refrigeration, carbonated drinks production, and industrial processes. The market has shown resilience in recent years, driven by both domestic demand and the evolving regulatory landscape focused on carbon emissions and sustainability.
In the United Kingdom, CO2 is produced primarily as a byproduct of ammonia production and natural gas processing. The increasing need for CO2 in various sectors and the growing push towards reducing carbon emissions will continue to influence market dynamics in the next decade.
United Kingdom Carbon Dioxide Market Size
As of 2024, the United Kingdom carbon dioxide market attained a volume of 725.8 KMT. This substantial size underscores the importance of CO2 in industrial processes and applications. The market’s size has been bolstered by the demand from key sectors such as food and beverage, healthcare, and the chemical industry. The consistent growth of these sectors is expected to further push the demand for CO2 in the coming years.
United Kingdom Carbon Dioxide Market Trends
The UK carbon dioxide market is experiencing several trends that are likely to shape its future trajectory:
Sustainability and Environmental Focus: With increasing pressure on industries to reduce carbon emissions, many sectors are turning to CO2 for various applications, including carbon capture, utilization, and storage (CCUS). CO2 is also essential in creating energy-efficient solutions, making it vital for sustainable development.
Rising Demand from Food and Beverage: The food and beverage industry is one of the largest consumers of CO2, particularly in the production of carbonated drinks, refrigeration, and packaging. This sector’s growth is a significant contributor to the market’s expansion.
Technological Advancements in CO2 Production: Innovations in CO2 capture and production technologies are expected to drive the market forward. These technologies will improve production efficiency and sustainability, creating new opportunities for industry players.
Regulatory Developments: With the UK’s commitment to reducing its carbon footprint, various regulations aimed at improving carbon management will likely create new opportunities for the CO2 market, including stricter emissions standards.
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United Kingdom Carbon Dioxide Market Segmentation
Source:
Ammonia
Ethyl Alcohol
Substitute Natural Gas and CCU
Production:
Biological
Combustion
End Use:
Food and Beverages
Oil and Gas
Medical
Metal Fabrication
Others
United Kingdom Carbon Dioxide Market Growth
The United Kingdom carbon dioxide market is expected to grow at a steady rate of 1.5% CAGR from 2025 to 2034. Several factors contribute to this growth, including the increasing demand for CO2 in key industries and the rise of new applications in carbon capture and storage. The food and beverage industry, in particular, is expected to continue driving market growth as the demand for CO2 in carbonation and refrigeration applications remains robust.
Moreover, the implementation of carbon pricing mechanisms and governmental incentives for sustainability initiatives will likely further stimulate growth in the market.
United Kingdom Carbon Dioxide Market Analysis
The market analysis for the UK CO2 market reveals that there is a well-established demand across various industries. However, production constraints and the reliance on imported CO2 may limit the growth potential in certain areas. Additionally, issues related to supply chain disruptions, such as the CO2 shortage in 2021, have highlighted the need for a more resilient production infrastructure.
The increasing focus on reducing carbon emissions is expected to drive both demand for CO2 in carbon capture applications and the push for green production methods. These factors will result in a more dynamic and evolving market landscape.
United Kingdom Carbon Dioxide Market Forecast
Looking ahead, the United Kingdom carbon dioxide market is set to expand at a CAGR of 1.5%, reaching 840.5 KMT by 2034. Key drivers of this forecasted growth include the growing demand from industrial applications, particularly in food and beverage, and the increased adoption of CO2 in sustainability initiatives. Additionally, technological innovations in CO2 production and utilization will play a key role in shaping the future market landscape.
Competitor Analysis
BioCarbonics Ltd.: Specializing in CO2 recovery and utilization, BioCarbonics is focused on environmental sustainability. Their approach to CO2 capture technology is contributing to the future growth of the market.
Tata Chemicals Europe Limited: A key producer of CO2 in the UK, Tata Chemicals is involved in both the manufacturing and sale of CO2 for various industrial applications. They are focused on expanding their sustainability initiatives.
Yara International ASA: Known for its strong presence in the agricultural sector, Yara International also contributes to CO2 production through its industrial operations. Their continued focus on sustainable development supports long-term market growth.
Air Products PLC: A global leader in industrial gases, Air Products is a key supplier of CO2 to the UK market. Their continued investment in innovative CO2 production techniques and carbon capture solutions is driving the market forward.
Air Liquide UK Ltd: A major player in the industrial gases sector, Air Liquide offers a broad range of CO2-related products and services, including carbonation and refrigeration solutions, playing a critical role in the market’s development.
Nippon Gases: Known for its industrial gases offerings, Nippon Gases supplies CO2 to various sectors in the UK, focusing on the food and beverage industry while embracing sustainable production techniques.
Progases (UK) Ltd: Specializing in the supply of gases for industrial, medical, and food applications, Progases is another key player shaping the UK CO2 market through diverse product offerings and growth-focused strategies.
Others: Several smaller companies also contribute to the overall market, focusing on niche applications, technological innovation, and regional production of CO2.
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