The United Kingdom Carbon Dioxide Market 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 such as food and beverages, medical applications, and metal fabrication. The market's trajectory is shaped by advancements in carbon capture technologies, regulatory frameworks, and the adoption of sustainable production methods.
In this blog post, we explore the key segments of the United Kingdom Carbon Dioxide Market, assess its production dynamics, and highlight the role of leading companies.
Key Market Segmentation by Source
Ammonia
Ammonia production remains a primary source of CO₂ in the United Kingdom Carbon Dioxide Market. CO₂ is a by-product of ammonia manufacturing and is essential for various industries, particularly in the food and beverage sector. Companies like Yara International ASA and Tata Chemicals Europe Limited are investing in advanced CO₂ recovery systems, ensuring a sustainable and efficient supply of CO₂ to meet growing demand.
Ethyl Alcohol
Ethyl alcohol fermentation is another key source of CO₂ in the UK. Bio-based CO₂ produced from the fermentation process is gaining popularity due to its lower environmental impact compared to traditional fossil-fuel-based CO₂ sources. BioCarbonics Ltd. is at the forefront of utilizing bio-based CO₂ production methods, catering to the increasing demand from industries such as food and beverages.
Substitute Natural Gas (SNG)
Substitute natural gas (SNG) also plays a vital role in the United Kingdom Carbon Dioxide Market. Companies like BOC Limited (Linde) are working on innovative solutions to capture CO₂ from SNG processes, meeting the needs of industrial applications while addressing sustainability concerns.
Market Segmentation by Production
Biological Production
Biological methods, such as fermentation and anaerobic digestion, are becoming increasingly important in the United Kingdom Carbon Dioxide Market. These processes are more eco-friendly and contribute to the UK’s sustainability goals. Companies like Ensus UK Limited are leveraging bioethanol production to generate CO₂ through biological methods, meeting the rising demand for greener CO₂ production alternatives.
Combustion Production
While combustion remains a significant method of CO₂ production, it faces challenges due to environmental concerns. To address these, companies such as Air Liquide UK Ltd and Air Products PLC are investing in carbon capture, utilization, and storage (CCUS) technologies to reduce emissions and enhance the efficiency of CO₂ recovery, aligning with the UK’s net-zero emissions targets.
Key Market Segmentation by End Use
Food and Beverages
The food and beverage industry is one of the largest consumers of CO₂ in the United Kingdom Carbon Dioxide Market. Carbon dioxide is essential in carbonated beverages, food preservation, and packaging. With the UK food and drink sector expanding, companies like BioCarbonics Ltd. and BOC Limited (Linde) are at the forefront of providing sustainable CO₂ solutions to meet the growing demand for food-grade CO₂.
Oil and Gas
CO₂ is widely used in enhanced oil recovery (EOR) processes within the UK’s oil and gas industry. While the demand for CO₂ in EOR is expected to decline as the UK transitions to renewable energy, Air Products PLC continues to support this sector by providing high-quality CO₂ to enhance oil recovery and other industrial applications.
Medical Applications
In the medical sector, CO₂ is essential for surgeries, respiratory therapies, and other medical procedures. Companies such as Nippon Gases and Progases (UK) Ltd supply medical-grade CO₂, ensuring compliance with stringent safety and quality standards to meet the growing demand for CO₂ in healthcare applications.
Metal Fabrication
CO₂ is used extensively in the metal fabrication industry, especially in welding and cutting processes. With manufacturing activities in sectors like automotive and construction on the rise, Tata Chemicals Europe Limited and Air Liquide UK Ltd play a crucial role in ensuring a steady supply of CO₂ to meet industrial requirements in metal fabrication.
Other Applications
In addition to these primary applications, CO₂ is also used in water treatment, fire suppression, and chemical production. These diverse applications ensure consistent demand across various industrial sectors in the United Kingdom Carbon Dioxide Market.
Market Dynamics
SWOT Analysis
Strengths
- Well-established CO₂ production and distribution infrastructure.
- Wide range of applications across multiple industries.
- Strong industrial presence with key players offering diverse solutions.
Weaknesses
- Dependence on limited primary sources of CO₂ like ammonia and ethyl alcohol.
- Environmental challenges associated with traditional CO₂ production methods.
Opportunities
- Growth in carbon capture and utilization technologies.
- Increasing demand for bio-based CO₂ production methods.
- Focus on sustainability and a circular economy in CO₂ production.
Threats
- Stringent environmental regulations and carbon emissions targets.
- Supply chain disruptions due to geopolitical or economic factors.
- Emerging competition from alternative gases and substitutes.
Porter’s Five Forces Analysis
- Threat of New Entrants: High barriers to entry, including capital investment and regulatory requirements.
- Bargaining Power of Suppliers: Limited CO₂ sources provide suppliers with moderate power.
- Bargaining Power of Buyers: Buyers benefit from multiple suppliers but require consistent quality and reliability.
- Threat of Substitutes: Emerging alternatives for specific applications may pose a long-term threat to CO₂ demand.
- Industry Rivalry: Intense competition among key players fosters innovation and price competitiveness.
Regional Insights
The demand for CO₂ in the United Kingdom Carbon Dioxide Market is concentrated in urban centers such as London, Birmingham, and Manchester, where industrial activities are highest. However, rural areas are also witnessing growth as industries expand outside metropolitan regions. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are optimizing their supply chain management to ensure balanced market dynamics across the UK.
Competitive Landscape
The United Kingdom Carbon Dioxide Market is home to several key players committed to innovation and sustainability. Leading companies in the market include:
- Ensus UK Limited: Specializes in bioethanol production, contributing to bio-based CO₂ generation.
- BioCarbonics Ltd.: Focuses on providing bio-based CO₂ solutions for the food and beverage industry.
- Tata Chemicals Europe Limited: Offers industrial-grade CO₂ solutions for various applications, including metal fabrication.
- Yara International ASA: Invests in advanced CO₂ recovery systems in ammonia production.
- Air Products PLC: A leader in carbon capture and sustainable CO₂ production technologies.
- BOC Limited (Linde): Supplies diverse CO₂ solutions across industrial, food, and medical sectors.
- Air Liquide UK Ltd: Known for its innovative approaches in CO₂ production and distribution.
- Nippon Gases: A key supplier of medical-grade CO₂ and industrial gases.
- Progases (UK) Ltd: Provides high-quality CO₂ solutions for various industrial sectors.
