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 steady growth reflects the increasing importance of carbon dioxide in various industries, including food and beverages, medical applications, and metal fabrication. The United Kingdom carbon dioxide market is also being shaped by advancements in carbon capture technologies, evolving regulatory frameworks, and the increasing adoption of sustainable production methods.
This blog post explores the key segments of the United Kingdom carbon dioxide market, assesses its production dynamics, and highlights the role of leading companies driving market growth.
Key Market Segmentation by Source
Ammonia
Ammonia production remains a primary source of carbon dioxide in the United Kingdom carbon dioxide market. CO₂ is a by-product of ammonia manufacturing, making it an essential resource for industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited are leading the charge in implementing advanced recovery systems to enhance CO₂ capture, ensuring a consistent and sustainable supply.
Ethyl Alcohol
Ethyl alcohol production also generates significant volumes of carbon dioxide, particularly in the food and beverage industry. Bio-based CO₂ is gaining prominence as a cleaner alternative to fossil-fuel-derived CO₂. Companies such as BioCarbonics Ltd. are focused on bio-based production methods to cater to the increasing demand for sustainable CO₂ solutions in the UK market.
Substitute Natural Gas (SNG)
Substitute natural gas processes contribute to the carbon dioxide supply in the United Kingdom, particularly in industrial applications. Companies like BOC Limited (Linde) are developing innovative solutions to capture CO₂ more efficiently from SNG processes, helping to reduce emissions while meeting industrial CO₂ demands.
Market Segmentation by Production
Biological Production
Biological CO₂ production methods, such as fermentation and anaerobic digestion, are gaining traction in the United Kingdom carbon dioxide market. These eco-friendly processes align with sustainability goals and present a reduced environmental impact compared to traditional combustion methods. Ensus UK Limited, a leading player in bioethanol production, plays a crucial role in biological CO₂ generation in the UK.
Combustion Production
Combustion-based CO₂ production remains prevalent in the United Kingdom, although it faces increasing regulatory pressure due to environmental concerns. Companies like Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to mitigate emissions while ensuring the continued availability of CO₂ for industrial applications.
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. Carbon dioxide is essential in the production of carbonated beverages, food preservation, and packaging. As the food and beverage sector continues to thrive, companies like BioCarbonics Ltd. and BOC Limited (Linde) are playing a key role in supplying food-grade CO₂ in an environmentally sustainable manner.
Oil and Gas
The oil and gas industry uses CO₂ for enhanced oil recovery (EOR) processes. Although the UK is transitioning to greener energy sources, CO₂ remains integral to extending the lifespan of existing oil fields. Air Products PLC continues to serve this market by supplying CO₂ for various oil and gas applications, ensuring continued demand in this sector.
Medical Applications
In the medical sector, CO₂ is indispensable for surgeries, respiratory therapies, and other medical applications. Companies like Nippon Gases and Progases (UK) Ltd provide high-quality, medical-grade CO₂ to healthcare providers across the United Kingdom, meeting strict safety and quality standards.
Metal Fabrication
The metal fabrication industry in the United Kingdom uses CO₂ for welding and cutting processes. As manufacturing industries, particularly in automotive and construction, expand, companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd are crucial in supplying the required CO₂ for these processes.
Other Applications
CO₂ also finds applications in water treatment, fire suppression, and chemical production, ensuring a steady demand across a variety of industrial sectors in the United Kingdom carbon dioxide market.
Market Dynamics
SWOT Analysis
Strengths
- Robust infrastructure for CO₂ production and distribution across the UK.
- Diverse applications in essential industries such as food and beverages, oil and gas, and medical.
- Strong presence of key players driving innovation and sustainability.
Weaknesses
- Dependence on a limited number of sources, such as ammonia and ethyl alcohol, for CO₂ production.
- Environmental challenges associated with traditional production methods.
Opportunities
- Technological advancements in carbon capture and utilization, boosting sustainable CO₂ production.
- Increased interest in bio-based CO₂ methods for a cleaner and greener supply chain.
- Growing emphasis on circular economy and sustainability across industries.
Threats
- Regulatory pressures related to emissions and environmental sustainability.
- Competition from alternative gases and potential substitutes in various applications.
- Vulnerabilities in the CO₂ supply chain due to external factors like geopolitical issues.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital costs and regulatory hurdles limit market entry for new players.
- Bargaining Power of Suppliers: Limited CO₂ sources give suppliers moderate power in the market.
- Bargaining Power of Buyers: Buyers have access to multiple CO₂ suppliers but demand high-quality and reliable deliveries.
- Threat of Substitutes: Emerging substitutes for certain CO₂ applications could disrupt demand patterns in the long run.
- Industry Rivalry: High competition among established players like Air Liquide UK Ltd and BOC Limited (Linde) promotes continuous innovation.
Regional Insights
The demand for CO₂ is concentrated in major urban areas like London, Birmingham, and Manchester, where industries are highly concentrated. However, as industrial expansion moves beyond metropolitan regions, companies such as Air Liquide UK Ltd and Air Products PLC are optimizing supply chains to meet the needs of emerging markets in rural areas.
Competitive Landscape
The United Kingdom carbon dioxide market is competitive, with key players continuously investing in innovation and sustainability. Some of the leading companies in the market include:
- Ensus UK Limited: A key player in bioethanol production, contributing to 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 applications in metal fabrication and beyond.
- Yara International ASA: Leads in advanced CO₂ recovery systems, particularly in ammonia production.
- Air Products PLC: A major player in CCUS technologies and sustainable CO₂ solutions for industrial applications.
- BOC Limited (Linde): A leading supplier of CO₂ for industrial, medical, and food-grade applications.
- Air Liquide UK Ltd: Focuses on sustainable CO₂ production and distribution technologies.
- Nippon Gases: Provides high-quality CO₂ solutions for medical and industrial applications.
- Progases (UK) Ltd: Supplies CO₂ for various industries while adhering to high standards of safety and quality.
