The United Kingdom carbon dioxide market size 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 carbon dioxide in various industries, such as food and beverages, medical applications, and metal fabrication. Additionally, the rising adoption of sustainable and innovative CO₂ production techniques is expected to further boost market expansion.
In this blog post, we’ll explore the key segments of the United Kingdom carbon dioxide market, examine its production dynamics, and highlight the key companies driving this growth.
Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market
Ammonia
Ammonia production is a major source of CO₂ in the United Kingdom carbon dioxide market. CO₂ is produced as a by-product during ammonia manufacturing, which is critical for industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited have made significant investments in advanced CO₂ recovery systems, improving the efficiency of CO₂ capture and ensuring a steady supply for a variety of applications.
Ethyl Alcohol
CO₂ is also produced during the fermentation of ethyl alcohol, a key process in biofuel production and the food and beverage industry. With increasing interest in bio-based CO₂ as a cleaner alternative to fossil-fuel-derived sources, companies like BioCarbonics Ltd. are capitalizing on the growing demand for sustainable carbon dioxide from biofuel production, which plays a significant role in meeting market needs.
Substitute Natural Gas (SNG)
SNG processes provide an additional source of CO₂ in the United Kingdom carbon dioxide market. As the energy sector moves toward cleaner and more sustainable sources, CO₂ captured from SNG is becoming an important supplement to traditional CO₂ production methods. Leading companies like BOC Limited (Linde) are working on integrating CO₂ recovery systems into these processes, enhancing the efficiency of CO₂ capture and supporting market growth.
Market Segmentation by Production in the United Kingdom Carbon Dioxide Market
Biological Production
Biological production methods, including fermentation and anaerobic digestion, are gaining significant traction in the United Kingdom carbon dioxide market. These eco-friendly methods reduce the environmental impact of CO₂ production and offer a sustainable alternative to traditional combustion-based methods. Companies such as Ensus UK Limited, which focuses on bioethanol production, play a key role in biological CO₂ generation, providing a steady and green source of CO₂.
Combustion Production
Combustion-based CO₂ production is still a prevalent method in the United Kingdom, primarily in industrial and energy sectors. However, the process faces increasing environmental scrutiny due to CO₂ emissions. Companies like Air Liquide UK Ltd and Air Products PLC are responding to these challenges by investing in carbon capture, utilization, and storage (CCUS) technologies to capture CO₂ emissions from combustion processes, ensuring that CO₂ meets industrial demands without increasing environmental harm.
Key Market Segmentation by End Use in the United Kingdom Carbon Dioxide Market
Food and Beverages
The food and beverages industry remains one of the largest consumers of CO₂ in the United Kingdom. Carbon dioxide is used extensively in carbonated drinks, food packaging, and preservation processes. As the demand for food-grade CO₂ continues to grow, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on sustainable CO₂ solutions to meet the rising demand while adhering to environmental standards.
Oil and Gas
In the oil and gas industry, CO₂ is predominantly used in enhanced oil recovery (EOR) processes. Although the UK is transitioning towards renewable energy sources, CO₂ will still be necessary for extending the life of existing oil fields. Despite this transition, companies such as Air Products PLC are continuing to provide CO₂ for EOR applications, contributing to the overall demand in the oil and gas sector.
Medical Applications
CO₂ is essential in medical applications, particularly in surgeries, anesthesia, and respiratory therapies. The United Kingdom’s growing healthcare sector, along with technological advancements in medical treatments, is expected to boost demand for medical-grade CO₂. Companies like Nippon Gases and Progases (UK) Ltd play a pivotal role in ensuring the availability of high-quality CO₂ for medical use.
Metal Fabrication
CO₂ is widely used in metal fabrication for processes like welding and cutting. As manufacturing activities continue to increase in the UK, particularly in the automotive and construction sectors, demand for CO₂ in metal fabrication is expected to grow. Leading players like Tata Chemicals Europe Limited and Air Liquide UK Ltd are well-positioned to cater to the needs of this expanding market segment.
Other Applications
CO₂ also has a wide range of applications in chemical production, water treatment, and fire suppression systems. These applications contribute to a steady and diverse demand for CO₂ across several industrial sectors in the United Kingdom.
Market Dynamics
SWOT Analysis
Strengths
- Well-established CO₂ production infrastructure and supply chain.
- High demand from diverse end-use industries such as food, medical, and manufacturing.
- Strong industrial base with a focus on sustainability.
Weaknesses
- Environmental concerns related to traditional CO₂ production methods.
- Dependency on a limited number of primary sources of CO₂.
Opportunities
- Continued advancements in carbon capture, utilization, and storage (CCUS) technologies.
- Growing demand for bio-based CO₂ production methods.
- Increased emphasis on sustainability and circular economy initiatives.
Threats
- Regulatory challenges on emissions and CO₂ production processes.
- Volatility in supply chains and competition from alternative gases.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital investments and regulatory requirements create significant barriers for new entrants.
- Bargaining Power of Suppliers: With a few key CO₂ sources, suppliers have moderate bargaining power.
- Bargaining Power of Buyers: Buyers have access to multiple suppliers, but demand consistent quality and delivery standards.
- Threat of Substitutes: Emerging substitutes for CO₂ in certain applications may pose a long-term threat.
- Industry Rivalry: Intense competition among established players drives technological innovation and cost efficiency.
Regional Insights
Urban areas such as London, Manchester, and Birmingham are key centers of CO₂ demand due to their concentration of industries and infrastructure. However, rural regions are seeing growth as industries expand beyond metropolitan hubs. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are focusing on optimizing their supply chains to address regional disparities and ensure a stable CO₂ supply across the UK.
Competitive Landscape
The United Kingdom carbon dioxide market is highly competitive, with several key players actively shaping the industry. Leading companies in the market include:
- Ensus UK Limited: A key player in bioethanol production, contributing significantly to biological CO₂ generation.
- BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions, particularly for the food and beverage sector.
- Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for applications in metal fabrication and other industries.
- Yara International ASA: A major player in ammonia-based CO₂ production, supplying various industrial sectors.
- Air Products PLC: A leader in CO₂ production and carbon capture technology, catering to several industries.
- BOC Limited (Linde): Offers a broad range of CO₂ solutions, including food-grade CO₂ and medical-grade CO₂.
- Air Liquide UK Ltd: Invests heavily in sustainable CO₂ production and distribution technologies.
- Nippon Gases: Supplies CO₂ for medical and industrial applications, ensuring safety and compliance.
- Progases (UK) Ltd: Provides specialized CO₂ solutions for various industries, including food, medical, and manufacturing sectors.
