Written by 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 growth reflects the increasing demand for carbon dioxide across various industries, such as food and beverages, medical applications, and metal fabrication, while sustainability and carbon capture technologies shape the future of CO₂ production in the UK.
In this blog post, we will explore the key segments of the United Kingdom carbon dioxide market, its production dynamics, and how leading companies are driving the market forward.
Key Market Segmentation by Source in the United Kingdom Carbon Dioxide Market
Ammonia
Ammonia production remains one of the primary sources of carbon dioxide in the United Kingdom carbon dioxide market. CO₂ is a by-product of ammonia manufacturing, which plays a key role in industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited are investing in advanced CO₂ recovery systems, making the process more sustainable and efficient.
Ethyl Alcohol
The fermentation of ethyl alcohol produces substantial volumes of CO₂, particularly in the food and beverage industry. Bio-based CO₂, produced through the fermentation process, is gaining popularity due to its lower environmental impact. Companies like BioCarbonics Ltd. are at the forefront of bio-based CO₂ production, catering to the growing demand for cleaner alternatives in various industries.
Substitute Natural Gas (SNG)
SNG processes also contribute to CO₂ supply in the UK. With its role in industrial applications, SNG is an important source of carbon dioxide. Companies such as BOC Limited (Linde) are improving carbon dioxide capture from SNG processes while minimizing emissions, offering sustainable alternatives for the United Kingdom carbon dioxide market.
Production Methods in the United Kingdom Carbon Dioxide Market
Biological Production
Biological methods such as fermentation and anaerobic digestion are gaining traction within the United Kingdom carbon dioxide market. These eco-friendly processes help reduce environmental impact while meeting CO₂ demand. Ensus UK Limited, with its bioethanol production, is a key player in the biological production of CO₂, supporting sustainability efforts in the industry.
Combustion Production
Combustion continues to be a dominant method for CO₂ production. However, it faces challenges related to emissions and environmental concerns. Companies like Air Liquide UK Ltd and Air Products PLC are leading efforts to integrate carbon capture, utilization, and storage (CCUS) technologies, ensuring that combustion-generated CO₂ meets industry requirements while reducing environmental harm.
End Use Applications in the United Kingdom Carbon Dioxide Market
Food and Beverages
The food and beverages sector is the largest consumer of carbon dioxide in the UK. CO₂ is primarily used in carbonated beverages, food preservation, and packaging. As demand for CO₂ grows in this sector, companies like BioCarbonics Ltd. and BOC Limited (Linde) are developing sustainable solutions to meet the increasing demand for food-grade CO₂.
Oil and Gas
CO₂ is crucial for enhanced oil recovery (EOR) in the oil and gas industry. Though the UK is transitioning towards renewable energy, the demand for CO₂ in EOR remains significant. Air Products PLC continues to provide CO₂ for EOR processes, playing a key role in the country’s energy landscape.
Medical Applications
In the medical field, CO₂ is indispensable for various procedures, including surgeries and respiratory therapies. Companies like Nippon Gases and Progases (UK) Ltd are providing high-quality, medical-grade CO₂, ensuring compliance with stringent safety standards while supporting the growing healthcare sector in the UK.
Metal Fabrication
CO₂ is used extensively in metal fabrication processes like welding and cutting. As the manufacturing sector in the UK grows, particularly in industries like automotive and construction, companies such as Tata Chemicals Europe Limited and Air Liquide UK Ltd are poised to meet the rising demand for CO₂ in industrial applications.
Other Applications
CO₂ is also utilized in water treatment, fire suppression, and chemical production. These diverse applications ensure that CO₂ demand remains strong across various sectors within the United Kingdom carbon dioxide market.
Market Dynamics of the United Kingdom Carbon Dioxide Market
SWOT Analysis
Strengths
- Established infrastructure and technological expertise in CO₂ production.
- Diverse end-use applications driving demand.
- Significant investments in sustainable production methods.
Weaknesses
- Over-reliance on a few primary CO₂ sources like ammonia and ethyl alcohol.
- Environmental concerns related to traditional CO₂ production processes.
Opportunities
- Growth of carbon capture and utilization technologies.
- Increased adoption of bio-based CO₂ production methods.
- Expansion of the circular economy and sustainability efforts.
Threats
- Regulatory pressure on emissions and carbon footprints.
- Competition from alternative gases and substitutes.
- Vulnerability to supply chain disruptions due to external factors.
Porter’s Five Forces Analysis
- Threat of New Entrants: High capital investment and strict regulatory requirements limit new market entrants.
- Bargaining Power of Suppliers: Limited CO₂ sources give suppliers a moderate level of power in negotiations.
- Bargaining Power of Buyers: While buyers have access to various suppliers, they prioritize high-quality and reliable CO₂ delivery.
- Threat of Substitutes: The rise of alternative gases and substitutes may pose a long-term threat to the market.
- Industry Rivalry: Intense competition among established players drives innovation and cost efficiency within the United Kingdom carbon dioxide market.
Regional Insights
In the United Kingdom, urban centers like London, Birmingham, and Manchester represent key demand drivers for CO₂ due to their high concentration of industrial activities. However, rural regions are seeing increasing demand as industries expand beyond metropolitan areas. Companies such as BOC Limited (Linde) and Air Liquide UK Ltd are optimizing supply chains to balance regional demand and production effectively.
Competitive Landscape of the United Kingdom Carbon Dioxide Market
The United Kingdom carbon dioxide market is highly competitive, with several key players offering innovative solutions and striving for sustainability. Major companies in the market include:
- Ensus UK Limited: A leader in bioethanol production and bio-based CO₂ generation.
- BioCarbonics Ltd.: A specialist in sustainable CO₂ production for the food and beverage industry.
- Tata Chemicals Europe Limited: A significant player in industrial CO₂ supply for metal fabrication and other applications.
- Yara International ASA: Known for its CO₂ recovery systems in ammonia plants.
- Air Products PLC: Focuses on carbon capture and storage technologies to support sustainable CO₂ production.
- BOC Limited (Linde): Provides CO₂ solutions across various industries, including food, medical, and industrial sectors.
- Air Liquide UK Ltd: Invests in sustainable CO₂ production and delivery technologies.
- Nippon Gases: A key supplier of high-quality medical-grade CO₂.
- Progases (UK) Ltd: Provides tailored CO₂ solutions to meet specific industry demands.
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