United Kingdom Carbon Dioxide Market Trends, Growth, and Opportunities (2025-2034)
The United Kingdom carbon dioxide market attained a volume of 725.8 KMT in 2024. The market is projected to grow at a CAGR of 1.5% during the forecast period of 2025-2034, reaching a volume of 840.5 KMT by 2034. This growth is driven by the increasing demand for carbon dioxide in various industries, including food and beverages, medical applications, and metal fabrication. Advancements in carbon capture technologies, sustainability practices, and regulatory frameworks are key factors influencing the United Kingdom carbon dioxide market‘s expansion.
In this blog post, we will explore the key segments of the United Kingdom carbon dioxide market, its production dynamics, and the major players driving this growth.
Key Market Segmentation by Source
Ammonia
Ammonia production is a major source of CO₂ in the United Kingdom carbon dioxide market, as it is a by-product of ammonia manufacturing. This process plays a critical role in providing CO₂ for various applications, especially in the food and beverage sector. Leading companies such as Yara International ASA and Tata Chemicals Europe Limited are investing in CO₂ recovery systems to ensure sustainable and efficient production.
Ethyl Alcohol
The fermentation of ethyl alcohol produces substantial amounts of CO₂, primarily used in the food and beverage industry. With a growing trend toward bio-based CO₂ production, companies like BioCarbonics Ltd. are capitalizing on the fermentation process to provide environmentally friendly CO₂ solutions. As the demand for sustainable practices grows, bio-based production will continue to expand within the United Kingdom carbon dioxide market.
Substitute Natural Gas (SNG)
SNG processes contribute significantly to the United Kingdom carbon dioxide market. By providing CO₂ as a by-product, this alternative source complements traditional methods of CO₂ production. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are innovating CO₂ capture techniques from SNG production to ensure a reliable and sustainable CO₂ supply for various industrial sectors.
Market Segmentation by Production
Biological Production
Biological CO₂ production, including methods like fermentation and anaerobic digestion, is gaining ground in the United Kingdom carbon dioxide market. These methods are sustainable and environmentally friendly, making them increasingly popular among businesses aiming to reduce their carbon footprint. Companies like Ensus UK Limited lead the charge in bioethanol production, contributing to biological CO₂ generation.
Combustion Production
Combustion remains a key method for CO₂ production, especially in energy and industrial sectors. However, due to environmental concerns, the focus is shifting toward improving the efficiency of combustion processes. Companies like Air Products PLC and Air Liquide UK Ltd are investing in carbon capture, utilization, and storage (CCUS) technologies to reduce emissions and enhance the sustainability of CO₂ production.
Key Market Segmentation by End Use
Food and Beverages
The United Kingdom carbon dioxide market is heavily driven by demand from the food and beverages industry. CO₂ is used in carbonated beverages, food preservation, and packaging. As the UK’s food and drink sector continues to grow, companies such as BioCarbonics Ltd. and BOC Limited (Linde) are investing in more sustainable CO₂ solutions to meet the rising demand while adhering to environmental standards.
Oil and Gas
In the oil and gas industry, CO₂ plays an essential role in enhanced oil recovery (EOR) processes. Although the demand for EOR may decrease as the UK shifts to renewable energy, CO₂ will remain a crucial component for this sector in the short term. Companies like Air Products PLC continue to supply high-quality CO₂ for oil and gas applications, ensuring that CO₂ remains a vital resource in this area.
Medical Applications
The medical sector is another major consumer of CO₂, which is used in surgeries, respiratory treatments, and other medical applications. Companies like Nippon Gases and Progases (UK) Ltd supply medical-grade CO₂, ensuring that it meets stringent quality and safety standards required in healthcare settings.
Metal Fabrication
CO₂ is also used in metal fabrication, particularly for welding and cutting processes. As manufacturing activities increase in the UK, the demand for CO₂ in metal fabrication will grow. Companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd are well-positioned to meet the growing needs of this sector.
Other Applications
CO₂ has various other applications, including in water treatment, fire suppression systems, and chemical production. The diverse nature of CO₂ usage ensures consistent demand across multiple industries, contributing to the stability of the United Kingdom carbon dioxide market.
Market Dynamics
SWOT Analysis
Strengths
- Robust infrastructure for CO₂ production and distribution.
- Strong market presence of key players offering diverse solutions.
- Consistent demand from critical sectors such as food and beverages, medical, and oil and gas.
Weaknesses
- Reliance on a limited number of CO₂ sources, including ammonia and ethyl alcohol.
- Environmental concerns over traditional CO₂ production methods.
Opportunities
- Increasing adoption of carbon capture and utilization (CCU) technologies.
- Growth in the bio-based CO₂ production sector.
- Rising demand for environmentally sustainable products and solutions.
Threats
- Stringent regulations on emissions and CO₂ production.
- Competition from alternative gases and substitutes in various applications.
- Supply chain disruptions due to geopolitical or economic factors.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital requirements and regulatory barriers limit the entry of new players into the United Kingdom carbon dioxide market.
- Bargaining Power of Suppliers: With limited CO₂ sources, suppliers hold moderate bargaining power in the market.
- Bargaining Power of Buyers: Buyers have access to several suppliers, though the demand for high-quality, consistent CO₂ delivery gives them leverage.
- Threat of Substitutes: Emerging alternatives to CO₂ may pose a long-term threat, especially in specific applications.
- Industry Rivalry: Intense competition among established players, such as Air Liquide UK Ltd, Air Products PLC, and BOC Limited (Linde), drives innovation and market expansion.
Regional Insights
Urban centers such as London, Birmingham, and Manchester are the major demand hubs for CO₂, owing to their high concentration of industries. However, growth is also occurring in rural areas, where industries are expanding. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing their supply chains to manage regional demand effectively.
Competitive Landscape
The United Kingdom carbon dioxide market is competitive, with leading companies focusing on innovation, sustainability, and expanding their product portfolios. Key players in the market include:
- Ensus UK Limited: Specializes in bioethanol production and biological CO₂ generation.
- BioCarbonics Ltd.: Provides sustainable, bio-based CO₂ for the food and beverage industry.
- Tata Chemicals Europe Limited: A key supplier of industrial-grade CO₂ for metal fabrication and other sectors.
- Yara International ASA: Invests in advanced CO₂ recovery systems for ammonia production.
- Air Products PLC: Pioneers in carbon capture technologies and sustainable CO₂ solutions.
- BOC Limited (Linde): Supplies diverse CO₂ solutions for medical, industrial, and food sectors.
- Air Liquide UK Ltd: Focuses on sustainability and efficient CO₂ production and distribution.
- Nippon Gases: Delivers high-quality CO₂ for medical and industrial applications.
- Progases (UK) Ltd: Focuses on tailored CO₂ solutions for various industries.
