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 trajectory highlights the rising importance of carbon dioxide across multiple industries, such as food and beverages, medical applications, and metal fabrication. The United Kingdom carbon dioxide market is being influenced by advancements in carbon capture technologies, the adoption of sustainable production methods, and evolving regulatory frameworks.

This blog post explores the key segments of the United Kingdom carbon dioxide market, evaluates production dynamics, and highlights the role of leading players in shaping its future.

Key Market Segmentation by Source

Ammonia

Ammonia production is a major source of carbon dioxide in the United Kingdom. CO₂ is a by-product of ammonia manufacturing, a critical process for industries requiring food-grade carbon dioxide. Companies such as Yara International ASA and Tata Chemicals Europe Limited are optimizing CO₂ recovery systems, ensuring a sustainable and reliable supply to various sectors.

Ethyl Alcohol

Ethyl alcohol fermentation is another significant source of CO₂ in the United Kingdom carbon dioxide market. CO₂ produced in this process is widely used in the food and beverage industry. With an increasing demand for biofuels and carbonated beverages, companies like BioCarbonics Ltd. are focusing on bio-based CO₂ production, which aligns with sustainability trends in the market.

Substitute Natural Gas (SNG)

Substitute natural gas (SNG) processes also contribute to CO₂ production, especially for industrial applications. Companies like BOC Limited (Linde) are developing innovative CO₂ recovery solutions from SNG, ensuring reduced emissions and maximizing efficiency in industrial processes.

Market Segmentation by Production

Biological Production

Biological CO₂ production methods, such as fermentation and anaerobic digestion, are becoming more prominent in the United Kingdom carbon dioxide market. These methods are eco-friendly and help reduce environmental impacts compared to traditional processes. Ensus UK Limited, a leading player in bioethanol production, contributes significantly to CO₂ generation via biological production methods.

Combustion Production

Combustion remains a prevalent method of CO₂ production in the United Kingdom. However, the process faces environmental challenges. To mitigate these, companies like Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies. These innovations help reduce emissions while maintaining a steady CO₂ supply for industries.

Key Market Segmentation by End Use

Food and Beverages

The food and beverages industry is the largest consumer of carbon dioxide in the United Kingdom. CO₂ is used in carbonated beverages, food preservation, and packaging. With the continuous growth of the UK food and drink sector, companies like BioCarbonics Ltd. and BOC Limited (Linde) are ensuring the supply of high-quality CO₂ solutions to meet increasing industry demand for food-grade CO₂.

Oil and Gas

In the oil and gas industry, CO₂ plays a crucial role in enhanced oil recovery (EOR) processes. While the United Kingdom is transitioning towards renewable energy, the oil and gas sector will continue to rely on CO₂ in the near term. Companies such as Air Products PLC continue to provide CO₂ solutions to support EOR applications and other industrial processes.

Medical Applications

Medical-grade CO₂ is essential for various healthcare applications, including surgeries, anesthesia, and respiratory therapies. Nippon Gases and Progases (UK) Ltd are key suppliers of CO₂ for the medical sector, ensuring that stringent safety and quality standards are met to support UK healthcare systems.

Metal Fabrication

CO₂ is widely used in metal fabrication, particularly in welding and cutting processes. As manufacturing activities in sectors like automotive and construction expand, the demand for CO₂ from companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd is set to increase.

Other Applications

Beyond the traditional uses, CO₂ is also applied in water treatment, fire suppression systems, and chemical production. These applications ensure a continuous demand for CO₂ across various industries in the United Kingdom.

Market Dynamics

SWOT Analysis

Strengths

• A well-established infrastructure for CO₂ production and distribution.
• Strong industrial base ensuring consistent demand from various sectors.
• A diverse range of applications for CO₂, promoting market stability.

Weaknesses

• The reliance on limited sources like ammonia and ethyl alcohol for CO₂ production.
• Environmental concerns related to combustion-based production methods.

Opportunities

• Advancements in carbon capture and utilization technologies, which can improve the sustainability of CO₂ production.
• Growing interest in bio-based CO₂ methods to align with sustainability goals.
• Rising demand for CO₂ across industries such as food and beverages, healthcare, and manufacturing.

Threats

• Stringent environmental regulations on carbon emissions and production methods.
• Possible disruptions in the CO₂ supply chain due to geopolitical or economic factors.
• The rise of alternative gases and substitutes that could compete with CO₂ in certain applications.

Porter’s Five Forces Analysis

• Threat of New Entrants: High capital investment and regulatory barriers create a strong barrier to new entrants in the market.
• Bargaining Power of Suppliers: Limited CO₂ sources give suppliers a moderate level of power in negotiations.
• Bargaining Power of Buyers: Buyers benefit from a range of suppliers, but they demand high-quality and timely deliveries.
• Threat of Substitutes: The emergence of alternative gases in certain applications poses a potential long-term threat.
• Industry Rivalry: Intense competition among established companies drives continuous innovation and improved cost efficiency.

Regional Insights

In the United Kingdom, urban centers like London, Birmingham, and Manchester dominate CO₂ demand due to their high concentration of industries and manufacturing facilities. However, rural areas are witnessing growth as industries expand outside of metropolitan hubs. Leading players such as BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chains to ensure consistent CO₂ availability across the country.

Competitive Landscape

The United Kingdom carbon dioxide market is competitive, with numerous global and regional players. Key companies in the market include:

• Ensus UK Limited: Focuses on bioethanol production and biological CO₂ generation.
• BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions, primarily for the food and beverage sector.
• Tata Chemicals Europe Limited: Supplies industrial-grade CO₂ for metal fabrication and other applications.
• Yara International ASA: Known for advanced CO₂ recovery systems in ammonia plants.
• Air Products PLC: Provides cutting-edge CO₂ capture and storage technologies.
• BOC Limited (Linde): A leader in the industrial gases sector, offering a variety of CO₂ solutions.
• Air Liquide UK Ltd: Focuses on sustainable CO₂ production methods.
• Nippon Gases: Supplies medical-grade CO₂, adhering to strict industry standards.
• Progases (UK) Ltd: Focuses on specialized CO₂ solutions for diverse applications.