The United Kingdom carbon dioxide market attained a volume of 725.8 KMT in 2024. This market is expected to witness a steady growth rate, with a projected CAGR of 1.5% from 2025 to 2034, reaching a volume of 840.5 KMT by 2034. This growth is being driven by the increasing importance of carbon dioxide across various industries such as food and beverages, medical applications, and metal fabrication, along with the continued adoption of sustainable production practices and advancements in carbon capture technologies.

In this blog post, we’ll explore the key segments of the United Kingdom carbon dioxide market, analyze its production dynamics, and examine the role of leading companies in driving growth.

Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market

Ammonia

Ammonia production is one of the primary sources of CO₂ in the United Kingdom carbon dioxide market. As CO₂ is a by-product of ammonia manufacturing, it plays a critical role in various industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited are leveraging advanced CO₂ recovery systems to improve the efficiency of CO₂ capture, ensuring a consistent supply for diverse applications.

Ethyl Alcohol

Ethyl alcohol, mainly produced through fermentation, is another significant source of carbon dioxide in the UK. This bio-based CO₂ is particularly popular in the food and beverage sector. BioCarbonics Ltd. has been instrumental in using bio-based production methods to generate CO₂, aligning with the growing demand for cleaner and more sustainable alternatives to traditional fossil-fuel-derived carbon dioxide.

Substitute Natural Gas (SNG)

SNG processes also contribute to the production of CO₂, especially for industrial applications. With the emphasis on transitioning to cleaner energy sources, companies like BOC Limited (Linde) are leading efforts to capture and utilize CO₂ from SNG processes in a more sustainable manner.

United Kingdom Carbon Dioxide Market Segmentation by Production

Biological Production

Biological methods such as fermentation and anaerobic digestion are gaining popularity in the United Kingdom carbon dioxide market. These eco-friendly production techniques help reduce environmental impact compared to traditional methods. Ensus UK Limited, a leader in bioethanol production, plays a pivotal role in generating biological CO₂, ensuring a sustainable and environmentally friendly source for the market.

Combustion Production

Despite growing concerns over emissions, combustion remains a significant method of CO₂ production in the UK. Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to enhance the efficiency of combustion-based CO₂ production and reduce the associated environmental impact.

United Kingdom Carbon Dioxide Market Segmentation by End Use

Food and Beverages

The food and beverages sector remains the largest consumer of CO₂ in the UK. Carbon dioxide is used extensively in the production of carbonated beverages, food preservation, and packaging. The growing demand for carbonated drinks and the rising focus on food safety and preservation are expected to drive steady growth in this segment. Companies such as BioCarbonics Ltd. and BOC Limited (Linde) are essential players providing sustainable CO₂ solutions for this thriving industry.

Oil and Gas

In the oil and gas industry, CO₂ is primarily used for enhanced oil recovery (EOR). While the UK is moving towards renewable energy solutions, CO₂ continues to be crucial in prolonging the lifespan of existing oil fields. Air Products PLC and Air Liquide UK Ltd are key suppliers of CO₂ for these EOR applications.

Medical Applications

CO₂ is essential in the medical field, being used in surgeries, anesthesia, and respiratory therapies. The growing healthcare sector in the UK, combined with advancements in medical technology, will continue to drive demand for medical-grade CO₂. Companies like Nippon Gases and Progases (UK) Ltd are significant suppliers of high-purity CO₂ for medical purposes.

Metal Fabrication

In the metal fabrication industry, CO₂ is primarily used in welding and cutting processes. The ongoing expansion of the UK’s manufacturing sectors, such as automotive and construction, ensures continued demand for industrial CO₂. Companies like Tata Chemicals Europe Limited and Air Liquide UK Ltd are positioned to meet this demand with their reliable CO₂ supply for manufacturing processes.

Other Applications

CO₂ is also used in chemical production, water treatment, fire suppression, and other industrial applications. These diverse applications provide stability and consistent demand for CO₂ across various sectors.

Market Dynamics in the United Kingdom Carbon Dioxide Market

SWOT Analysis

Strengths

• Established CO₂ production infrastructure across the UK.
• Strong presence of key players ensuring a diverse CO₂ supply.
• Increasing demand across multiple industrial sectors.

Weaknesses

• Dependency on a few primary sources like ammonia and ethyl alcohol.
• Environmental concerns regarding traditional CO₂ production methods.

Opportunities

• Technological advancements in carbon capture and utilization.
• Growing demand for bio-based and sustainable CO₂ production methods.
• The increasing focus on sustainability and circular economy initiatives.

Threats

• Stringent regulatory frameworks regarding emissions.
• Potential disruptions in supply chains due to geopolitical or economic factors.
• The rise of alternative gases and substitutes in some industries.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investment and strict regulatory requirements act as barriers to entry.
• Bargaining Power of Suppliers: Limited CO₂ production sources give suppliers moderate power.
• Bargaining Power of Buyers: While buyers can choose from multiple suppliers, they require consistent quality and reliable delivery.
• Threat of Substitutes: Emerging alternatives to CO₂ in some industrial processes pose a potential long-term threat.
• Industry Rivalry: Intense competition among established players encourages innovation and drives cost efficiency.

Regional Insights in the United Kingdom Carbon Dioxide Market

The demand for CO₂ in the United Kingdom carbon dioxide market is concentrated in urban regions such as London, Birmingham, and Manchester, where industries like food and beverages, healthcare, and metal fabrication are prominent. However, rural areas are also witnessing growth as industries expand beyond metropolitan centers. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are ensuring efficient supply chain management to balance the regional demand for CO₂.

Competitive Landscape of the United Kingdom Carbon Dioxide Market

The United Kingdom carbon dioxide market is competitive, with several leading players actively contributing to the market’s growth. Key companies in the market include:

• Ensus UK Limited: Known for bioethanol production and biological CO₂ generation.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions for the food and beverage industry.
• Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for metal fabrication and other applications.
• Yara International ASA: A leader in ammonia-based CO₂ production with advanced CO₂ recovery systems.
• Air Products PLC: Innovates in carbon capture and utilization technologies to provide sustainable CO₂ solutions.
• BOC Limited (Linde): A major supplier of industrial and medical CO₂, committed to sustainability.
• Air Liquide UK Ltd: Focuses on sustainable CO₂ production and distribution systems.
• Nippon Gases: Supplies high-purity CO₂ for medical applications and other industries.
• Progases (UK) Ltd: Provides reliable CO₂ solutions for industrial, medical, and other applications.