Carbon dioxide Market Size was valued at USD 7.14 billion in 2023. The Carbon dioxide industry is projected to grow from USD 8.61 billion in 2024 to USD 13.52 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032). Carbon dioxide (CO2) is a chemical compound composed of two oxygen atoms bonded to a single carbon atom. It is a colorless, odorless, and non-flammable gas that is naturally present in the Earth's atmosphere. Carbon dioxide is a vital component of the Earth's carbon cycle and plays several essential roles in the environment and in various industrial processes.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global carbon dioxide (CO2) market is undergoing a transformation driven by growing industrial applications of this versatile gas. Long known primarily for its role as a greenhouse gas and contributing to climate change, CO2 is finding new and innovative uses in a wide range of industries. This shift is reshaping the market environment, opening up opportunities for sustainable practices, value creation and environmental responsibility. Historically, CO2 has been a problem due to its increasing concentrations in the atmosphere, leading to global warming and climate change. Governments, organizations and individuals are working to reduce CO2 emissions and mitigate their impact on the environment. However, in recent years a new paradigm has emerged where CO2 is seen not only as a challenge but also as a valuable resource with various applications. Growing industrial applications of carbon dioxide are reshaping the global CO2 market. What were previously considered problematic emissions are now being harnessed for sustainable solutions and economic value. The transition to a circular carbon economy is a promise not only to reduce emissions, but also to create a more efficient and environmentally responsible industrial landscape. As industries continue to innovate and collaborate, the CO2 market is poised for transformative growth driven by its newfound versatility and potential. Therefore, as a result of carbon dioxide's extensive use across all of the aforementioned end-use industries, the expansion of each one will directly contribute to the growth of the Carbon dioxide Market.
The global food and beverage industry is experiencing significant growth and evolution, driven by changing consumer preferences, technological advancements, and changes in lifestyles and demographics. The industry encompasses a wide range of products, from fresh and packaged foods to beverages, and plays a key role in both the global economy and everyday life. Consumers are increasingly looking for healthier, more convenient and sustainable food and beverage options. This shift in preferences has led to a demand for products that are organic, natural, additive-free and meet specific dietary needs. Rapid urbanization and changing lifestyles have led to an increased reliance on packaged and processed foods. As more and more people live in urban areas and have busier schedules, convenient and prepared food and beverages have become a necessity.
Improved transportation and logistics have allowed food and beverages to move easily across borders. Consumers are now exposed to a wide variety of cuisines and flavors from different parts of the world. The rise of e-commerce platforms and food delivery services has changed the way consumers purchase and access food and beverages. Online grocery shopping and meal delivery options have gained popularity, especially in urban areas. Food and beverage companies are constantly innovating to introduce new products and flavors to meet changing consumer demands. This includes plant-based alternatives, functional foods and beverages with added health benefits. Busy lifestyles have led to higher demand for semi-finished products that require minimal preparation. Ready meals, prepackaged salads and on-the-go snacks have become popular choices among consumers. Consumers are willing to pay for premium and high quality food and drink experiences. This includes gourmet meals, specialty drinks and dining experiences that offer unique flavors and textures.
Advances and rapid growth in carbon capture and utilization (CCU) technologies present a compelling and transformative opportunity for the carbon dioxide (CO2) market. In an era defined by the urgency of combating climate change and carbon mitigation, CCU technologies have emerged as pioneering solutions that not only address environmental challenges, but also open new avenues for economic growth, innovation and sustainability. Carbon capture and utilization (CCU) techniques have emerged as innovative solutions to reduce carbon dioxide (CO2) emissions and contribute to a more sustainable future. These techniques involve capturing CO2 emissions from various sources and turning them into valuable products, turning a significant environmental challenge into an opportunity for economic growth and environmental stewardship. In recent years, advances in CCU technologies have led to substantial growth in this area and offer promising avenues to reduce carbon emissions while creating value. Advances and growth in carbon capture and utilization techniques are a transformative opportunity for the Carbon dioxide Market. These innovative technologies offer the dual benefit of reducing carbon emissions and creating economic value. The synergy between environmental sustainability and economic growth is a hallmark of the CCU revolution. As industry increasingly recognizes the potential of CCUs, the stage is set for collaborative efforts to usher in a more sustainable, circular and economically vibrant future.
The Carbon dioxide Market segmentation, based on source has been segmented as ethyl alcohol, ethylene oxide, hydrogen, substitute natural gas, and others. Among these, ethyl alcohol is projected to dominate the Carbon dioxide Market revenue through the projected period. Ethanol is primarily produced through a fermentation process in which yeast or bacteria convert sugars into alcohol and carbon dioxide. During this fermentation process, carbon dioxide is a natural byproduct. The carbon dioxide produced in ethanol fermentation is typically released into the atmosphere or captured for various purposes. The carbon dioxide generated during ethanol production is considered a byproduct. In the past, this CO2 was often released into the atmosphere as waste. However, in recent years, there has been a growing interest in capturing and utilizing this CO2, thus creating a market for carbon dioxide. One of the significant applications of carbon dioxide captured from ethanol fermentation is in the beverage industry, particularly for carbonating soft drinks and beverages. The captured CO2 is purified and compressed for use in carbonation processes, providing the effervescence and bubbles in carbonated beverages. As the demand for carbonated beverages remains high, this creates a demand for carbon dioxide sourced from various industries, including ethanol production.
The Carbon dioxide Market segmentation, based on form, the market is segmented as solid, liquid, gas. Out of which the gas segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. One of the largest and most prominent applications of carbon dioxide is in beverage carbonation. CO2 is used to carbonate soft drinks, carbonated water, beer, and other beverages. As the global consumption of carbonated beverages continues to rise, so does the demand for carbon dioxide. The gas segment is a primary supplier of CO2 to the beverage industry, driving market growth. Carbon dioxide is utilized in the food industry for various purposes, including food preservation, refrigeration, and modified atmosphere packaging. It helps extend the shelf life of perishable foods, prevent spoilage, and maintain food quality. As the food industry expands and consumer demand for fresh and packaged foods increases, the gas segment plays a critical role in supplying CO2 for these applications. In the welding and metal fabrication industry, carbon dioxide is used as a shielding gas during welding processes, such as MIG (Metal Inert Gas) and MAG (Metal Active Gas) welding. It provides an inert atmosphere that protects the welding area from contamination and ensures high-quality welds. As manufacturing and construction activities grow, the demand for welding gases, including CO2, also increases.
The Carbon dioxide Market segmentation, based on application, the market is segmented as food & beverages, oil & gas, medical, chemical, agriculture, firefighting, and others. Out of which the oil & gas segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. The primary driver of CO2 utilization in the oil and gas industry is EOR. In EOR, carbon dioxide is injected into mature oil reservoirs to enhance oil production. CO2 acts as a miscible displacement fluid, helping to reduce the viscosity of the oil and improve its flow characteristics. As global oil demand continues to rise and the need to extract more oil from aging reservoirs increases, EOR projects are on the rise, leading to higher demand for captured or produced CO2. Carbon dioxide is used in natural gas processing, particularly in natural gas sweetening processes. When natural gas contains high levels of impurities, including hydrogen sulfide (H2S) and carbon dioxide, these impurities must be removed to meet safety and environmental standards. CO2 is used in gas sweetening units to selectively react with H2S, forming solid sulfur compounds and leaving purified natural gas. As natural gas production and processing expand, so does the demand for CO2 in this application. The oil and gas industry is a major player in CCS initiatives aimed at reducing greenhouse gas emissions. CO2 is captured from industrial processes, such as power plants and industrial facilities, and transported to underground storage sites, often in depleted oil and gas reservoirs. The growth of CCS projects, driven by environmental regulations and the need to mitigate climate change, leads to the increased utilization and transportation of CO2, contributing to the CO2 market.
By Region, the study segments the Carbon dioxide market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The sizable carbon dioxide industry in Asia-Pacific is likely to make the region the largest expanding global market for carbon dioxide. The Asia-Pacific region is home to some of the world's fastest-growing economies, including China and India. Rapid industrialization and urbanization in these countries have led to increased manufacturing activities, energy consumption, and infrastructure development. As a result, the demand for CO2 has surged in various industries, such as steel, cement, chemicals, and electronics, to support processes like welding, cooling, and carbonation. The Asia-Pacific region has a growing population with increasing disposable incomes. This has driven the demand for carbonated beverages and packaged foods, leading to a rising need for CO2 in beverage carbonation and food preservation. Additionally, CO2 is used in the production of dry ice for food transportation and storage. Agriculture is a vital sector in many Asia-Pacific countries. CO2 is used for greenhouse farming and as a component of controlled atmosphere storage (CAS) for fruits and vegetables. With a focus on increasing agricultural productivity and reducing post-harvest losses, the demand for CO2 in agriculture has grown.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Carbon dioxide Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Carbon dioxide Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global carbon dioxide industry to benefit clients and expand the Carbon dioxide market sector is partnerships and acquisitions. The market for Carbon dioxide is recognized as being extremely competitive and fragmented. The market for Carbon dioxide offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the market include Air Liquide (France), Linde (Ireland), Air Products and Chemicals (US), Messer Group (Germany), Sicgil India Ltd (India), Acail (Portugal), Taiyyo Nippon Sanso Corporation (Japan), SOL Group (Italy), India Glycols Ltd (India), and Greco Gas (US). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
Greco Gas Inc.: Greco Gas Inc. specializes in the business of specialty & industrial gases, bulk propane, filler metals, welding equipment & supplies and safety equipment. The company offers industrial, microbulk and specialty gases that fulfill numerous gas requirements in various industries. Some of the industrial gases provided by the company include oxygen, argon, helium, carbon dioxide and hydrogen. Its specialty gases category includes medical gas, beverage gas, lase gas mixtures, custom gas mixtures, and high purity gases. The industries served by the company through its wide variety of products and services include manufacturing, welding, metal fabrication, food & beverage, construction, power & energy, agriculture and healthcare & life sciences, among others. The company produces carbon dioxide of various grades such as industrial, food and beverage and coleman grades for serving purposes in welding, beverage industry and fuel tank and pipeline applications.
India Glycols Limited: India Glycols Limited specializes in the manufacturing of bulk, specialty and performance chemicals, natural gums, industrial gases, sugar, spirits and nutraceuticals. The chemical division of the company is further categorized as ethylene glycols (MEG, DEG and TEG), ethoxylates and polyethylene glycols (PEG), glycol ethers and acetates and performance chemicals. The products manufactured by the company find applications in industries such as automotive, mining, oil & gas, paper, pharmaceuticals, personal care, food processing and many more. It has two plants of beverage grade liquid CO2 at Gorakhpur and Kashipur units. The company invests significantly on enhancing its research and development capabilities. The R& D division of the company focuses on scaling up the quality and processes along with reducing the overall cost. The facilities of the company are certified and approved by international agencies such as Det Norske Veritas (DNV).
April 2023: Linde Plc announced an agreement with ExxonMobil for off-take of the carbon dioxide associated with the Linde’s clean hydrogen production in Texas. Under this agreement, ExxonMobil will store and transport around 2.2 million metric tons of CO2 every year from the hydrogen production facility of Linde Plc.
April 2022: Air Liquide signed an agreement with Sogestran for providing shipping of large-scale liquid carbon dioxide for the project of carbon capture & storage in Europe. Through this joint venture, Air Liquide will be able to strengthen its carbon management value chain that includes capture, processing, aggregation, and transport to the storage locations.
November 2021: Nippon Sanso Holdings Corporation announced the construction of a new production facility of dry ice and liquified carbon dioxide in Texas. Through this new plant construction, company will be able to supply CO2 to numerous customers from several industrial sectors.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 7.14 billion |
| Market Size 2024 | USD 8.61 billion |
| Market Size 2032 | USD 13.52 billion |
| Compound Annual Growth Rate (CAGR) | 5.80 % (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Form and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| Key Companies Profiled | Air Liquide (France), Linde (Ireland), Air Products and Chemicals (US), Messer Group (Germany), Sicgil India Ltd (India), Acail (Portugal), Taiyyo Nippon Sanso Corporation (Japan), SOL Group (Italy), India Glycols Ltd (India), and Greco Gas (US) |
| Key Market Opportunities | ·      Growing food and beverage industry |
| Key Market Drivers | ·      Advancements and growth of Carbon capturing and utilization techniques |
Frequently Asked Questions (FAQ) :
Carbon dioxide Market was US$ 7.14 Bn in 2023
The growth rate of the Carbon dioxide Market was 5.80% in 2023.
Asia Pacific held the largest market share in the Carbon dioxide Market
Key players in Carbon dioxide Market included Air Liquide (France), Linde (Ireland), Air Products and Chemicals (US), Messer Group (Germany), Sicgil India Ltd (India), Acail (Portugal), Taiyyo Nippon Sanso Corporation (Japan), SOL Group (Italy), India Glycols Ltd (India), and Greco Gas (US)
Ethyl Alcohol led the Carbon dioxide Market
Gas had the largest market share in the Carbon dioxide Market
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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