According to a new report by Expert Market Research titled, “United Kingdom Carbon Dioxide Market Growth, Size, Share, Report and Forecast 2024-2032″, The United Kingdom carbon dioxide market size attained a volume of 725.8 KMT in 2023. Aided by the increased demand from diverse industries including the food and beverage industry, the market is estimated to witness a CAGR of 1.5% during 2024-2032 to reach a volume of 840.5 KMT by 2032.
Carbon dioxide (CO₂) is a versatile gas that plays a crucial role in various industries, including food and beverages, healthcare, chemicals, and industrial processes. As a colorless and odorless gas, carbon dioxide is produced naturally through respiration, combustion, and other biological processes, but it is also generated as a by-product of certain industrial activities. In the United Kingdom, carbon dioxide is widely used in applications such as carbonating beverages, food preservation, welding, and the production of chemicals. It is also used in medical treatments for respiratory stimulation and as a cooling agent in the transport of perishable goods. The United Kingdom carbon dioxide market is experiencing evolving trends, shaped by growing demand from key sectors, challenges in supply chains, and shifts toward sustainability and alternative sources of CO₂.
One of the primary United Kingdom carbon dioxide market trends is the increased demand from the food and beverage industry. CO₂ is essential in carbonating soft drinks and beer, and its use in food processing and packaging ensures extended shelf life by preventing spoilage and microbial growth. With the UK’s food and beverage sector remaining robust, the demand for carbon dioxide has remained stable and is projected to increase as consumer preferences shift toward more packaged and processed foods. The rising consumption of ready-to-eat meals, snacks, and beverages, particularly with the increasing adoption of convenience lifestyles, has further boosted the market demand for CO₂ in this industry. The growth of e-commerce and online food delivery services has also contributed to the rising need for CO₂ as a refrigerant in the cold chain, ensuring the safe transport and storage of perishable goods.
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The healthcare industry in the UK is another critical sector driving the United Kingdom carbon dioxide market expansion. CO₂ is used in medical procedures such as laparoscopic surgeries and in respiratory therapies to stimulate breathing. The ongoing advancements in medical technology and the aging population in the UK are likely to increase the demand for carbon dioxide in healthcare applications. Moreover, the rising prevalence of chronic respiratory conditions and the need for critical care during emergencies have expanded the application of CO₂ in medical settings. This growing reliance on CO₂ for healthcare purposes has strengthened the overall market value and is expected to continue shaping its future trends.
However, despite the steady demand from key sectors, the United Kingdom carbon dioxide market development has been impacted by significant challenges in recent years. One of the primary issues is the supply chain disruptions that have occurred due to the reliance on ammonia production for CO₂ generation. Ammonia plants produce carbon dioxide as a by-product, and periodic shutdowns or reductions in ammonia production have led to shortages of CO₂, affecting industries such as food and beverage manufacturing. This supply instability has highlighted the need for diversification in CO₂ sources and prompted discussions about increasing domestic production or exploring alternative methods of generating carbon dioxide, such as capturing it from industrial emissions or utilizing biogas.
The push for sustainability and carbon capture technologies is also influencing the United Kingdom carbon dioxide market value. With the UK government committed to reducing greenhouse gas emissions and achieving net-zero targets by 2050, there has been increasing interest in carbon capture and storage (CCS) technologies. These technologies allow for the capture of CO₂ emissions from industrial processes, preventing them from entering the atmosphere and contributing to climate change. Captured carbon dioxide can then be stored underground or repurposed for use in various industries. This shift toward carbon capture and utilization (CCU) is expected to open new opportunities for market development, as industries explore ways to reduce their carbon footprint while meeting the growing demand for CO₂. Moreover, advancements in CCU technologies are likely to contribute to the carbon dioxide market growth in the UK by creating a more sustainable and reliable source of carbon dioxide.
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The United Kingdom carbon dioxide market demand is being influenced by the growing interest in green and renewable sources of CO₂. Biogas, which is produced from organic waste, can be processed to generate carbon dioxide as a by-product. This process aligns with the broader sustainability goals of reducing waste and promoting circular economies. Several companies in the UK are exploring the use of biogas plants to produce CO₂, providing a cleaner and more sustainable alternative to traditional CO₂ production methods. As the UK continues to prioritize sustainability and reduce its reliance on fossil fuels, the adoption of renewable CO₂ sources is likely to gain momentum, contributing to the overall market growth.
The industrial sector also plays a significant role in the United Kingdom carbon dioxide market growth, with CO₂ being used for processes such as welding, metal fabrication, and as a refrigerant in industrial cooling systems. The automotive and manufacturing industries have been major consumers of CO₂ for welding applications, particularly in the production and assembly of vehicles and machinery. As the UK manufacturing sector evolves and adopts more automation and advanced production technologies, the demand for carbon dioxide in industrial processes is expected to rise. Additionally, the use of CO₂ in enhanced oil recovery (EOR) techniques, where carbon dioxide is injected into oil fields to increase extraction rates, adds another dimension to the market trends, although its use in this sector is limited by environmental concerns and the transition toward cleaner energy sources.
Geopolitical factors and global market dynamics also influence the carbon dioxide market in the United Kingdom. The availability of CO₂ is often tied to the broader European market, with imports and exports playing a crucial role in balancing supply and demand. The impact of Brexit on trade regulations and cross-border movements of goods has added complexity to the UK’s CO₂ supply chain, prompting businesses to reassess their sourcing strategies and focus on securing more localized production. This shift is expected to encourage greater investment in domestic carbon dioxide production capabilities, helping to stabilize the UK carbon dioxide market and reduce reliance on imports.
Market Segmentation
The United Kingdom carbon dioxide market can be divided based on source, production, end use.
Market Breakup by Source
• Ammonia
• Ethyl Alcohol
• Substitute Natural Gas and CCU
Market Breakup by Production
• Biological
• Combustion
Market Breakup by End Use
• Food and Beverages
• Oil and Gas
• Medical
• Metal Fabrication
• Others
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the United Kingdom carbon dioxide market. Some of the major players explored in the report by Expert Market Research are as follows:
• Ensus UK Limited
• BioCarbonics Ltd.
• Tata Chemicals Europe Limited
• Yara International ASA
• Air Products PLC
• BOC Limited (Linde)
• Air Liquide UK Ltd
• Nippon Gases
• Progases (UK) Ltd
• Others
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