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% between 2025 and 2034, reaching a volume of 840.5 KMT by 2034. This growth reflects the increasing importance of carbon dioxide in industries such as food and beverages, medical applications, and metal fabrication. The market’s growth is further supported by advancements in carbon capture technologies, a shift toward sustainable production methods, and favorable regulatory frameworks.
This post will explore the key segments, production dynamics, end-use industries, and leading players driving the growth of the United Kingdom Carbon Dioxide Market.
Key Market Segmentation by Source
Ammonia
Ammonia production is one of the primary sources of CO₂ in the United Kingdom Carbon Dioxide Market. Ammonia manufacturing generates carbon dioxide as a by-product, essential for various industries requiring food-grade CO₂. Companies like Yara International ASA and Tata Chemicals Europe Limited play a significant role in CO₂ capture systems, ensuring a sustainable supply while supporting industrial growth.
Ethyl Alcohol
The fermentation of ethyl alcohol also produces substantial amounts of CO₂. This process is critical for industries like food and beverages, where CO₂ is used extensively in carbonation and preservation. Bio-based CO₂, derived from ethyl alcohol, is becoming increasingly popular as a cleaner alternative. BioCarbonics Ltd. is at the forefront of bio-based CO₂ production, catering to the rising demand in sustainable applications.
Substitute Natural Gas (SNG)
SNG is another key source of CO₂, particularly in industrial applications. While the transition to renewable energy is accelerating, SNG still plays a role in CO₂ production. Companies such as BOC Limited (Linde) are focusing on developing efficient CO₂ recovery processes from SNG production, contributing to the overall supply of industrial CO₂.
Market Segmentation by Production
Biological Production
Biological CO₂ production, through methods such as fermentation and anaerobic digestion, is gaining traction in the United Kingdom Carbon Dioxide Market. These methods offer a sustainable approach, reducing environmental impact compared to traditional combustion-based processes. Companies like Ensus UK Limited, with its bioethanol production, are contributing to the increasing demand for bio-based CO₂.
Combustion Production
Combustion remains a significant method for CO₂ production, especially in industrial and energy sectors. However, the market is transitioning toward more sustainable methods due to increasing environmental concerns. Companies such as Air Products PLC and Air Liquide UK Ltd are leading the charge by investing in carbon capture, utilization, and storage (CCUS) technologies that help mitigate the environmental impact of combustion.
Key Market Segmentation by End Use
Food and Beverages
The food and beverages industry is the largest consumer of CO₂ in the United Kingdom Carbon Dioxide Market. CO₂ is widely used in carbonation, food preservation, and packaging. As the UK food and drink sector continues to grow, demand for food-grade CO₂ will rise. Companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on sustainable CO₂ solutions to meet this increasing demand.
Oil and Gas
In the oil and gas industry, CO₂ is used in enhanced oil recovery (EOR) processes to extract more oil from existing fields. Despite the UK’s shift toward renewable energy, CO₂ demand in EOR remains significant. Companies like Air Products PLC and BOC Limited (Linde) provide CO₂ solutions for these processes, supporting the ongoing need for carbon dioxide in the sector.
Medical Applications
The medical sector relies heavily on CO₂ for various procedures, including surgeries and respiratory therapies. As the healthcare sector in the UK expands, demand for medical-grade CO₂ is expected to rise. Nippon Gases and Progases (UK) Ltd are key players in providing CO₂ for medical applications, ensuring high-quality standards and regulatory compliance.
Metal Fabrication
CO₂ plays an essential role in metal fabrication processes such as welding and cutting. As manufacturing activities grow in the UK, particularly in the automotive and construction sectors, the demand for CO₂ in metal fabrication is expected to increase. Companies like Tata Chemicals Europe Limited and Air Liquide UK Ltd are poised to meet the growing CO₂ requirements in this sector.
Other Applications
CO₂ is also used in water treatment, fire suppression, and chemical production. The diverse range of CO₂ applications ensures steady demand across multiple industrial sectors in the United Kingdom Carbon Dioxide Market.
Market Dynamics
SWOT Analysis
Strengths
- Well-established infrastructure for CO₂ production and distribution.
- Diverse applications across multiple industries, ensuring consistent demand.
- A growing focus on sustainability and reducing carbon footprints.
Weaknesses
- Dependency on a limited number of CO₂ production sources such as ammonia and ethyl alcohol.
- Environmental concerns related to traditional CO₂ production methods.
Opportunities
- Technological advancements in carbon capture and utilization.
- Increasing focus on bio-based CO₂ production and sustainable industrial practices.
- Growing awareness of sustainability among consumers and industries.
Threats
- Stringent environmental regulations on CO₂ emissions.
- Geopolitical and economic factors that may disrupt supply chains.
- Competition from alternative gases and substitutes.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital requirements and strict regulatory barriers limit new market entrants.
- Bargaining Power of Suppliers: Limited sources of CO₂ give suppliers a moderate level of power.
- Bargaining Power of Buyers: Buyers have access to multiple suppliers, but they demand high-quality CO₂ and reliable delivery.
- Threat of Substitutes: Emerging alternatives to CO₂ in certain industrial applications could pose a long-term threat.
- Industry Rivalry: Intense competition among established players fosters innovation and competitive pricing.
Regional Insights
Urban areas like London, Birmingham, and Manchester drive the demand for CO₂ due to their high concentration of industrial activities. However, rural regions are also experiencing growth, as industries extend beyond metropolitan hubs. Companies such as BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chains to meet the diverse needs of both urban and rural markets across the UK.
Competitive Landscape
The United Kingdom Carbon Dioxide Market is highly competitive, with numerous players focusing on innovation and sustainability. Key players include:
- Ensus UK Limited: A leading producer of bioethanol and bio-based CO₂ solutions.
- BioCarbonics Ltd.: Specializes in bio-based CO₂ for the food and beverage industry.
- Tata Chemicals Europe Limited: Provides industrial-grade CO₂ for metal fabrication and other sectors.
- Yara International ASA: Focuses on sustainable CO₂ recovery from ammonia plants.
- Air Products PLC: A pioneer in carbon capture and storage technologies for CO₂ production.
- BOC Limited (Linde): Offers a range of CO₂ solutions for industrial and medical applications.
- Air Liquide UK Ltd: Leading in the development of sustainable CO₂ production and distribution.
- Nippon Gases: Supplies high-quality CO₂ for the medical and industrial sectors.
- Progases (UK) Ltd: Meets specific CO₂ needs across various industries.
