The United Kingdom carbon dioxide market attained a volume of 725.8 KMT in 2024. The market is projected to witness a CAGR of 1.5% during 2025-2034, reaching a volume of 840.5 KMT by 2034. This steady growth is driven by the increasing demand for carbon dioxide across diverse industries such as food and beverages, medical applications, and metal fabrication, coupled with advancements in sustainable production methods and carbon capture technologies. This blog post delves into key market segments, production dynamics, and the role of leading companies shaping the United Kingdom carbon dioxide market.
Key Market Segmentation by Source
Ammonia
Ammonia production is a significant source of CO₂ in the United Kingdom carbon dioxide market. CO₂ is produced as a by-product during ammonia manufacturing, which is crucial for industries requiring food-grade carbon dioxide. Companies like Yara International ASA and Tata Chemicals Europe Limited are enhancing CO₂ recovery systems to ensure a sustainable supply for various applications, boosting the market’s overall growth.
Ethyl Alcohol
Fermentation of ethyl alcohol is another key source of CO₂ in the UK. This bio-based production method, often used in the beverage and biofuel industries, offers a more sustainable and cleaner alternative to fossil-fuel-derived CO₂. BioCarbonics Ltd. plays a key role in utilizing bio-based CO₂ production, which is becoming increasingly popular in the United Kingdom carbon dioxide market due to its reduced environmental impact.
Substitute Natural Gas (SNG)
Substitute natural gas (SNG) processes also contribute to CO₂ supply in the UK. SNG is an alternative fuel source, and companies like BOC Limited (Linde) are adopting innovative CO₂ capture technologies to ensure its efficient and eco-friendly production. As the demand for alternative fuel sources increases, SNG will continue to be a vital component of the United Kingdom carbon dioxide market.
Market Segmentation by Production
Biological Production
Biological CO₂ production, including fermentation and anaerobic digestion, is gaining traction in the UK. These methods are increasingly seen as eco-friendly alternatives to traditional production processes. Companies like Ensus UK Limited that focus on bioethanol production contribute significantly to biological CO₂ generation in the United Kingdom carbon dioxide market.
Combustion Production
Combustion-based CO₂ production remains important in the UK, especially in industrial applications. However, this method faces growing environmental concerns. To mitigate emissions, companies like Air Products PLC and Air Liquide UK Ltd are investing in carbon capture, utilization, and storage (CCUS) technologies to reduce environmental impact while maintaining production levels of CO₂.
Key Market Segmentation by End Use
Food and Beverages
The food and beverages sector is one of the largest consumers of CO₂ in the United Kingdom carbon dioxide market. CO₂ is widely used in carbonated beverages, food packaging, and preservation processes. As the UK food and drink sector continues to expand, companies like BioCarbonics Ltd. and BOC Limited (Linde) are focusing on providing sustainable CO₂ solutions to meet the growing demand from this industry.
Oil and Gas
CO₂ is used extensively in enhanced oil recovery (EOR) processes within the oil and gas sector. Although the UK is transitioning towards renewable energy, demand for CO₂ in EOR is expected to remain stable during the forecast period. Air Products PLC and Nippon Gases are significant players in supplying high-quality CO₂ for EOR applications, ensuring continued support for this sector in the United Kingdom carbon dioxide market.
Medical Applications
In the medical sector, CO₂ plays an essential role in various applications, including surgeries and respiratory therapies. Nippon Gases and Progases (UK) Ltd are key suppliers of medical-grade CO₂, catering to the growing demand for medical applications in the United Kingdom carbon dioxide market.
Metal Fabrication
CO₂ is critical in metal fabrication, particularly in welding and cutting applications. With the growing manufacturing sector in the UK, demand for CO₂ in metal fabrication is expected to rise. Tata Chemicals Europe Limited and Air Liquide UK Ltd are significant contributors to meeting the CO₂ needs of this expanding industry.
Other Applications
Other applications of CO₂ include water treatment, fire suppression, and chemical production. These diverse uses ensure a steady demand across various industries, contributing to the stability and growth of the United Kingdom carbon dioxide market.
Market Dynamics
SWOT Analysis
Strengths
- Strong infrastructure for CO₂ production and distribution in the United Kingdom carbon dioxide market.
- Diverse applications driving consistent demand.
- Continuous innovation in CO₂ production and capture technologies by leading companies.
Weaknesses
- Over-reliance on a few primary sources of CO₂ such as ammonia and ethyl alcohol.
- Environmental concerns surrounding traditional production methods.
Opportunities
- Growing demand for bio-based CO₂ production methods, supporting sustainability.
- Advances in carbon capture and utilization technologies, improving production efficiency.
- Increased emphasis on the circular economy and reducing carbon footprints.
Threats
- Stringent environmental regulations could impact production methods.
- Geopolitical and economic factors affecting the global supply chain.
- Competition from alternative gases or substitutes.
Porter’s Five Forces Analysis
- Threat of New Entrants: Barriers to entry, such as high capital investment and regulatory hurdles, limit new entrants into the United Kingdom carbon dioxide market.
- Bargaining Power of Suppliers: Limited sources of CO₂ give suppliers moderate bargaining power.
- Bargaining Power of Buyers: Buyers have access to multiple suppliers but require consistent quality and delivery.
- Threat of Substitutes: Alternative gases and substitutes may eventually pose a threat to traditional CO₂ applications.
- Industry Rivalry: The market is highly competitive, with companies focusing on technological advancements and cost-efficiency.
Regional Insights
Urban centers such as London, Birmingham, and Manchester remain key hubs for CO₂ demand in the United Kingdom carbon dioxide market. As industrial activities spread beyond metropolitan areas, rural regions are also witnessing an increase in CO₂ demand. Companies like BOC Limited (Linde) and Air Liquide UK Ltd are strategically optimizing their supply chains to meet regional demands.
Competitive Landscape
The United Kingdom carbon dioxide market is characterized by competition among several key players that are focusing on innovation, sustainability, and efficient production methods. Major players in the market include:
- Ensus UK Limited: Focuses on bioethanol production, contributing to biological CO₂ generation.
- BioCarbonics Ltd.: Specializes in bio-based CO₂ solutions for the food and beverage sector.
- Tata Chemicals Europe Limited: A key supplier of industrial-grade CO₂ for metal fabrication and other applications.
- Yara International ASA: Provides advanced CO₂ recovery systems in ammonia plants.
- Air Products PLC: Known for developing carbon capture and storage technologies for sustainable CO₂ production.
- BOC Limited (Linde): Offers a wide range of CO₂ solutions for industrial, food-grade, and medical applications.
- Air Liquide UK Ltd: Invests in sustainable CO₂ production technologies.
- Nippon Gases: Supplies high-quality CO₂ for medical and industrial applications.
- Progases (UK) Ltd: Focuses on meeting the specific CO₂ requirements of various industries.
