Carbon Dioxide Market Research, 2032
The global carbon dioxide market was valued at $79.0 billion in 2020, and is projected to reach $148.2 billion by 2032, growing at a CAGR of 5.8% from 2023 to 2032. Industrial demand for carbon dioxide (CO₂) majorly drives the growth of the carbon dioxide market, with various sectors utilizing CO₂ for different applications. CO₂ plays a crucial role in carbonation processes, adding effervescence to soft drinks, sparkling waters, and other beverages in the food and beverage industry.
Introduction
Carbon dioxide is a colorless, odorless gas that is naturally present in the Earth's atmosphere. It is composed of one carbon atom and two oxygen atoms and is a byproduct of various natural and human activities, including respiration, combustion of fossil fuels, and natural processes such as volcanic activity and the decay of organic matter. Carbon dioxide is used in greenhouses to increase plant growth and yield. Controlled CO2 levels in the greenhouse can lead to up to 30% more yield.
CO2 can be added to the air using a variety of methods, such as burning natural gas or propane, or using compressed CO2 tanks or generators that produce CO2 through chemical reactions. The CO2 levels are typically maintained between 800 and 1,200 parts per million (ppm), which is higher than the current atmospheric concentration of around 400 ppm. Carbon dioxide (CO2) is widely used in the beverage industry to add carbonation or fizz to soft drinks, beer, sparkling wine, and other carbonated beverages. Carbonation is achieved by dissolving CO2 gas under pressure into the beverage, which then forms tiny bubbles of gas when the pressure is released.
CO₂ is a non-flammable gas at room temperature and pressure, and it can exist as a solid (dry ice) at temperatures below -78.5°C (-109.3°F). At standard atmospheric pressure, it exists in a gaseous state. It is soluble in water, forming carbonic acid (H2CO3), which is weakly acidic. Due to its ability to dissolve in water, CO₂ is vital for regulating pH levels in natural bodies of water and in the blood of living organisms.
Key Takeaways
- The carbon dioxide market share covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) and volume (kiloton) for the projected period.
- The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
- Over 3,700 product literatures, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
- The carbon dioxide market growth is highly fragmented, with several players including ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Gulf Cryo, India Glycols Limited, Linde PLC, Messer Group, SOL Group, Axcel Gases, PAVAN INDUSTRIAL GASES PVT. LTD., Coregas, and Air Liquide. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the carbon dioxide market.
Market Dynamics
Increase in demand in the food and beverage industry is expected to drive the growth of the carbon dioxide market during the forecast period. The food and beverage industry relies on carbon dioxide for a variety of applications, such as carbonating soft drinks and beer, preserving packaged food, and modifying the atmosphere in food processing and storage facilities. CO2 is used in various food processing applications, including freezing and chilling, as well as in the production of certain foods like baked goods. It can also be used in vacuum packaging, which removes oxygen from the packaging to help preserve the product. In December 2021, Sonoco Products announced the $1.35 billion cash acquisition of Ball Metalpack, a manufacturer of sustainable metal packaging for food and household products, to expand its focus on sustainable packaging.
Carbon dioxide can be used as a natural preservative to inhibit the development of bacteria and other microbes. It also helps to increase the shelf life of many different types of goods by lowering the oxygen level of the packaging. CO2 is used as a propellant in aerosol cans to dispense products such as whipped cream, cooking sprays, and other food products. Around 70% of the carbon dioxide produced in the U.S. is used by the food and drinks industry.
However, high capture cost of carbon dioxide is expected to restrain the growth of the carbon dioxide market during the forecast period. The high cost associated with capturing and storing carbon dioxide (CO₂) represents a significant barrier to the widespread adoption of carbon capture and storage (CCS) technologies. Capturing CO₂ from industrial processes or power plants requires sophisticated and expensive equipment, such as amine scrubbers or other advanced separation technologies. These systems are designed to isolate CO₂ from other gases, but their installation and maintenance can be prohibitively expensive. Once captured, CO₂ must be transported to storage sites, which involves additional costs. The infrastructure for transporting CO₂, whether through pipelines or other means, requires substantial investment. Moreover, the transportation process must be managed to ensure safety and efficiency, adding further complexity and expense.
Segments Overview
The carbon dioxide market is segmented into form, application, and region. On the basis of form, the market is categorized into solid, liquid, and gas. On the basis of application, the market is divided into agriculture, metal fabrication, food and beverages, oil and gas, medical, firefighting, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Carbon Dioxide Market, By Segment
By form, the gas segment dominated the global carbon dioxide market in terms of revenue in 2020 and is expected to witness a CAGR of 5.7% during the forecast period. Carbon dioxide (CO₂) in its gaseous form plays a critical role across various industries and applications. In the industrial sector, CO₂ is primarily used for its properties as an inert gas, which makes it ideal for applications requiring a non-reactive environment. One notable use is in the food and beverage industry, where CO₂ is used for carbonation of soft drinks, sparkling wines, and other beverages. Its solubility in liquids creates the bubbles that are essential to the effervescence of these products. In addition, CO₂ is a key component in enhanced oil recovery (EOR) techniques. In this process, CO₂ is injected into oil reservoirs to increase pressure and reduce the viscosity of the oil, thereby improving its extraction efficiency. This method helps in maximizing the output from oil fields and extending their productive life.
Carbon Dioxide Market, By Application
Based on application, the food and beverage segment dominated the carbon dioxide market in 2020 and is expected to witness a CAGR of 5.7% during the forecast period. Carbon dioxide (CO₂) plays a crucial role in the food and beverage industry, serving multiple applications that enhance product quality and safety. One of the most familiar usage of CO₂ is in carbonation, where it is used to add fizz to soft drinks, sparkling waters, and alcoholic beverages such as beer. The carbonation process not only imparts a refreshing taste and effervescence but also helps in preserving the beverage by creating an environment that inhibits microbial growth. CO₂ is also used in the food and beverage industry for its role in pH control and fermentation processes. In brewing, for example, CO₂ is a byproduct of fermentation, but it is also added in controlled amounts to maintain the proper pH levels and enhance the beer's flavor profile. Similarly, in the production of carbonated beverages, CO₂ is carefully monitored to achieve the desired level of carbonation, which affects the drink's taste and mouthfeel.
In the food industry, CO2 is utilized in processes such as cryogenic freezing and cooling. It can rapidly freeze food products to preserve their freshness, flavor, and texture. Carbon dioxide can be used to adjust the pH level of certain food and beverage products, helping to control acidity and enhance flavor stability. CO2 is used as a foaming agent in various food applications, such as whipped cream, ice cream, and baked goods. It helps create a light, airy texture in these products.
Carbon Dioxide Market By Region
Region-wise, Asia-Pacific was the highest revenue contributor and fastest growing region growing with the CAGR of 6.1% during the forecast period. In Asia-Pacific countries, CO₂ is widely used in various industrial processes. For instance, in China and India, CO₂ is essential for enhanced oil recovery (EOR), where it is injected into oil reservoirs to increase extraction rates. In addition, the chemical industry in countries such as Japan and South Korea utilizes CO₂ for the production of chemicals such as urea and methanol. The food and beverage sector across the region uses CO₂ for carbonation in soft drinks and other products. The region is also focusing on CO₂ management and mitigation strategies. Countries such as South Korea and China are investing in carbon capture and storage (CCS) technologies to reduce greenhouse gas emissions from industrial sources. These efforts are part of broader strategies to meet international climate commitments and address environmental concerns related to carbon emissions.
As per the Carbon Brief, China’s carbon dioxide (CO2) emissions grew 10% year-on-year in the second quarter of 2023, rising approximately 1% above the record levels seen in 2021. China is on track to meet a goal to bring its climate-warming carbon dioxide emissions to a peak before 2030
Competitive Analysis
The major players operating in the carbon dioxide market include ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Gulf Cryo, India Glycols Limited, Linde PLC, Messer Group, SOL Group, Axcel Gases, PAVAN INDUSTRIAL GASES PVT. LTD., Coregas, and Air Liquide. On October 31, 2022, Linde Plc and Schlumberger Limited (SLB) announced a strategic collaboration on carbon capture, utilization and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide (CO2) capture and sequestration innovative technology portfolios, project development and execution expertise capabilities
Industry Trends of Carbon Dioxide Industry
- As of April 5th, 2023, data from the National Oceanic and Atmospheric Administration reveals that the global surface average for CO2 has risen by 2.13 parts per million (ppm) to reach 417.06 ppm. This increase mirrors the consistent trend observed over the last decade. Notably, atmospheric CO2 levels have now surged to a staggering 50% higher than pre-industrial levels. Furthermore, 2022 marked the 11th consecutive year in which CO2 levels increased by more than 2 ppm, representing the most sustained rate of increase in the 65-year history of monitoring.
- In 2022, global energy-related CO2 emissions increased by 0.9%, reaching a record high of over 36.8 billion tons. This growth was significantly slower compared to the previous year's rebound of over 6%, which followed two years of fluctuating energy use and emissions due to the Covid-19 pandemic.
- In 2022, the increase in carbon dioxide (CO2) emissions was lower than the global Gross Domestic Product (GDP) growth rate of 3.2%. This marks a return to the trend of CO2 emissions and economic growth becoming less closely linked, which was interrupted by a significant increase in emissions in 2021. However, the rate of improvement in the CO2 intensity of energy use was slightly slower compared to the average of the past decade.
In May 2021, Esco introduced the Esco CelCulture CO2 Incubator with High Heat Sterilization (CCL-HHS), featuring a dry heat sterilization system at 180°C. This innovation effectively eliminates resistant fungi, bacterial spores, and vegetative cells from the workspace, ensuring a contaminant-free environment.
- On May 1, 2020, Messer Group launched a new Carbon Dioxide (CO2) plant in Keyes, California. The plant provides up to 450 tons-per-day of CO2, which is an essential product for carbonated beverages, food freezing and chilling, and electronics.
Historic Trends of Carbon Dioxide Market
- In 1767, Joseph Priestley discovered that carbon dioxide could be used to make water "sparkling" by dissolving it under pressure, thus creating carbonated water.
- In 1850s, the first ice-making machines were developed, which used carbon dioxide as a refrigerant in food preservation, medical applications, and other purposes.
- In 1950s, carbon dioxide was initially used in the oil and gas industry for enhanced oil recovery. It is injected into underground oil reservoirs to help extract more oil and improve recovery rates.
- In 1988s, the Intergovernmental Panel on Climate Change (IPCC) is established by the United Nations Environment Program (UNEP) and the World Meteorological Organization (WMO) to assess scientific information related to climate change. Its first assessment report in 1990 highlights the role of greenhouse gases, including carbon dioxide, in driving global warming.
- In 2015, the Paris Agreement aimed to significantly reduce greenhouse gas emissions, including CO2, to limit global warming. The agreement acknowledges the importance of achieving net-zero greenhouse gas emissions.
- In 2018, the world's first direct air capture plant, the Climeworks plant, started operating in Switzerland. The plant captures carbon dioxide from the air and supplies it to a nearby greenhouse for use in plant growth.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the carbon dioxide market analysis from 2023 to 2032 to identify the prevailing carbon dioxide market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the carbon dioxide market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global carbon dioxide market trends, key players, market segments, application areas, and market growth strategies.
Carbon Dioxide Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 148.2 billion |
 Growth Rate | CAGR of 5.8% |
 Forecast period | 2020 - 2032 |
 Report Pages | 225 |
 By Form |
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 By Application |
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 By Region |
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 Key Market Players | Taiyo Nippon Sanso Corporation, SOL Spa, Gulf Cryo, ACAIL GAS, Linde PLC, Messer Group, India Glycols Limited, Ellenbarrie Industrial Gases Private Limited, Dubai Industrial Gases, Buzwair Industrial Gases Factories |
Analyst Review
According to the opinions of various CXOs of leading companies, carbon dioxide market is driven by rise in demand from gas industry. Carbon dioxide gas is widely used to carbonate beverages, such as soda, beer, and sparkling water. It is added to the liquid to create carbonic acid, which creates the bubbles that give these drinks their characteristic fizz.
Rise in use of carbon dioxide in healthcare industry drive the growth of carbon dioxide market. CO2 is increasingly being used in the healthcare industry for a variety of applications, including diagnostic, therapeutic, and surgical procedures. It is commonly used in laparoscopic surgery, where it is used to inflate the abdomen and improve visibility. CO2 is preferred over other gases because it is readily absorbed by the body and does not pose a risk of explosion.
However, adverse impacts of carbon dioxide on humans and the environment is expected to restrain industry expansion. CO2 is a naturally occurring gas that is essential to life on Earth, but high concentrations can have adverse impacts on both humans and the environment. Exposure to high levels of CO2 can cause a variety of health problems, including headaches, dizziness, fatigue, and shortness of breath.
The Asia-Pacific region is projected to register robust growth during the forecast period. Carbon dioxide can be used as a feedstock for chemicals, such as methanol and urea. In 2022, Australian cement manufacturer Boral partnered with Southern Oil Refining to produce a lower-carbon cement using CO2 captured from the refining process.
The global carbon dioxide market was valued at $79.0 billion in 2020, and is projected to reach $148.2 billion by 2032, growing at a CAGR of 5.8% from 2023 to 2032.
Asia-Pacific is the largest region of carbon dioxide market
Gas is the leading application of carbon dioxide market.
Surge in carbon recycling for renewable materials and energy supply are the upcoming trends of carbon dioxide market
The major players operating in the carbon dioxide market include ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Gulf Cryo, India Glycols Limited, Linde PLC, Messer Group, SOL Group, Axcel Gases, PAVAN INDUSTRIAL GASES PVT. LTD., Coregas, and Air Liquide.
Growth in demand for carbon dioxide from food and beverage industry and rise in use of carbon dioxide in healthcare industry are the main drivers of the market
Adverse impacts of carbon dioxide on humans and environment are the restraint of the market.
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