Carbon Dioxide Manufacturing in the UK: Market Size, Businesses & Forecast 2026

The UK carbon dioxide manufacturing industry is categorized under the manufacture of industrial gases, primarily functioning as a recovery and refinement sector that captures byproduct carbon dioxide from ammonia and fertilizer production. The industry serves critical downstream sectors, including food and beverage processing, nuclear energy, and healthcare, with market stability heavily influenced by the operational status of domestic fertilizer complexes. As of 2026, the sector continues to prioritize supply chain resilience and diversification of sourcing to mitigate the risks associated with production volatility observed in previous years.

Industry snapshot

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What does the Carbon Dioxide Manufacturing in the UK industry cover?

The industry is formally recognized within the UK Standard Industrial Classification (SIC) 2007 system under Class 20.11, which covers the manufacture of industrial gases. This scope includes the purification, compression, and liquefaction of carbon dioxide, which is predominantly sourced as a byproduct from ammonia production facilities. It excludes the primary extraction of gases from natural reservoirs, focusing instead on the capture and processing of gas generated by industrial chemical processes.

• •Primary classification: UK SIC Code 20.11 (Manufacture of industrial gases).
• •Includes production of liquid, compressed, and solid (dry ice) carbon dioxide.
• •Excludes extraction of natural gas or fuels (classified under separate extractive industries).

Who operates in the industry and how is it structured?

The market structure is highly concentrated, characterized by a small number of large, multinational industrial gas companies that operate the purification and distribution infrastructure. Because carbon dioxide is typically a byproduct, the supply chain is inextricably linked to the operational efficiency and output of large-scale ammonia manufacturing plants. Market entrants face significant barriers due to the capital-intensive nature of gas separation infrastructure and the strict requirements for food-grade purity.

• •Market characterized by high barriers to entry and capital-intensive infrastructure.
• •Operational reliance on integrated chemical and fertilizer manufacturing sites.
• •Distribution networks managed primarily by large industrial gas incumbents.

What drives demand in the industry?

Demand is driven predominantly by the food and beverage sector, where carbon dioxide is essential for carbonation and the humane stunning of livestock. Additionally, the industry supports niche applications in the healthcare sector for medical procedures and the nuclear energy sector for reactor cooling. Price and availability are highly sensitive to natural gas costs, which dictate the viability of the parent ammonia production facilities.

• •Food & Beverage: Essential for carbonation, packaging, and food preservation.
• •Agriculture/Food Safety: Critical for humane stunning processes in abattoirs.
• •Energy/Medical: Specialized usage in nuclear power generation and medical respiratory therapies.

Who are the notable companies in the industry?

The landscape is dominated by a few major industrial gas suppliers with local UK operations that handle the marketing, distribution, and specialized gas handling services. While ammonia production (the source of the CO2) has seen consolidation and site closures, these gas majors maintain the downstream refining and distribution network. Key operators managing the CO2 supply chain in the UK include international conglomerates with established domestic footprints.

• •BOC (a member of The Linde Group): Major UK supplier of industrial and medical gases.
• •Air Products: Operates significant gas separation and supply infrastructure in the UK.
• •Air Liquide UK: Key provider of compressed gases for various industrial applications.
• •CF Fertilisers UK Limited: A critical upstream supplier (ammonia/fertilizer) providing the raw byproduct for CO2 capture.

What are the recent trends and outlook?

Following supply shocks in 2021 and 2022 caused by the temporary closure of domestic ammonia plants, the industry has shifted toward enhancing supply chain resilience. This includes a greater reliance on imported CO2 and investment in storage infrastructure to mitigate the impact of domestic production volatility. The long-term outlook is tied to the broader industrial transition, with interest growing in Carbon Capture and Storage (CCS) technologies to repurpose captured emissions.

• •Increased focus on import diversification to reduce reliance on domestic ammonia byproduct.
• •Technological interest in CCS (Carbon Capture and Storage) as a future supply source.
• •Continued sensitivity to global natural gas price fluctuations impacting primary production.

How is the industry regulated?

Operators are subject to rigorous safety and environmental standards due to the high-pressure nature of gas storage and the asphyxiation risks associated with carbon dioxide. Compliance is overseen by the Health and Safety Executive (HSE), with specific focus on pressure systems and chemical safety. Furthermore, companies must adhere to food safety standards when supplying gas for beverage and food applications.

• •Pressure Equipment (Safety) Regulations 2016: Governs the design and testing of pressurized gas containers.
• •COMAH (Control of Major Accident Hazards) Regulations: Applicable to facilities storing large quantities of hazardous chemicals.
• •BCGA (British Compressed Gases Association) codes of practice: Standardizes safety in gas handling and storage.

Government, statistical and trade sources used for this Claight analysis.

• UK Office for National Statistics (ONS) - SIC 2007 Hierarchy ·
• Health and Safety Executive (HSE) - Pressure Equipment (Safety) Regulations 2016 ·
• British Compressed Gases Association (BCGA) - Industry Codes of Practice ·
• UK Government Energy Trends - Natural Gas Statistics (2026)