Carbon Dioxide (CO₂) Market Sales to Top USD 18.3 Billion in Revenues by 2032 at a CAGR of 5.4%

Introduction

The global Carbon Dioxide (CO₂) Market is experiencing notable growth, with projections indicating an increase from USD 10.8 billion in 2023 to approximately USD 18.3 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.4% during the forecast period. This expansion is primarily driven by rising demand across various sectors, including food and beverage, enhanced oil recovery, and the chemical industry. CO₂ is critical in processes like carbonating beverages, producing dry ice, and facilitating oil extraction, thus supporting its robust market growth.

Recent developments have further accelerated market dynamics. Innovations in CO₂ capture and utilization technologies, aimed at mitigating climate change impacts, are gaining traction. For instance, advanced carbon capture and storage (CCS) techniques are being integrated into industrial operations to reduce CO₂ emissions. The surge in demand for sustainable practices and stricter environmental regulations are also contributing to the market’s expansion. However, challenges such as high operational costs and technical complexities associated with CO₂ capture and storage could hinder growth. Additionally, the market faces competition from alternative technologies and fluctuating prices of CO₂, which can impact profitability.

Air Liquide, a major player in the CO₂ market, has been active in both acquisitions and technology advancements. The company acquired a significant stake in a pioneering CO₂ capture facility in the Netherlands, valued at approximately USD 100 million. This move is expected to strengthen Air Liquide’s position in the European market and bolster its capabilities in industrial gas production .

Air Products and Chemicals, Inc. has made headlines with its new investment of USD 150 million in CO₂ capture technology and infrastructure in the U.S. This investment is part of its broader strategy to reduce carbon emissions and enhance its portfolio in sustainable solutions. Greco Gas Inc. has also made notable progress by launching a new CO₂ liquefaction unit in North America. This facility, with an annual production capacity of 500,000 metric tons, aims to meet the growing demand for CO₂ in various industries, including food and beverage and chemical manufacturing.

Statistics

Global CO2 emissions reached a level of 38.0 billion tonnes in 2021. The G20 states were responsible for around 81% of these emissions. The largest carbon dioxide emitters among the G20 members were China, the United States, and the EU.
The highest CO2 emissions per inhabitant of all G20 countries were recorded by Saudi Arabia with 16.6 tonnes. It was followed by Canada with 14.9 tonnes, Australia with 14.3 tonnes, and the United States with 14.2 tonnes. With around 8.7 tonnes China’s per capita emissions were above the EU level of 6.3 tonnes.
In 2019, about 43.1 billion tons of CO2 from human activities were emitted into the atmosphere. This was an all-time high, breaking the previous record from 2018. The emissions could form a giant “CO2 cube” measuring 30 km on each side.
Global emissions of carbon dioxide have increased constantly since around 1800.
According to the UN Environment Programme, emissions must fall by 25 % before 2030 to keep increases within 2 degrees by 2100. 55 % reductions before 2030 are needed to limit the increase to 1.5 degrees.
carbon dioxide in the Earth’s atmosphere to go up from around 275 parts per million (ppm) before the industrial revolution to over 410 in 2020. A 50 % increase.
From 1850 to 2019, 2,400 gigatons of CO2 were emitted by human activity. Around 950 gigatons went into the atmosphere. The rest has been absorbed by oceans and land.
Water vapor: The main greenhouse gas, contributing 36-72 % of the greenhouse effect.
Carbon dioxide: The main contribution to the greenhouse effect by human activities.
Methane: A very powerful greenhouse gas that is 28 times more potent than carbon dioxide. The levels of methane have increased by 170 % since the Industrial Revolution
Ozone: Contributing around 5 % of global warming and has seen a 42 % increase since 1750.
Nitrous oxide: An extremely powerful greenhouse gas with a warming potential 265 times higher than carbon.
Forests store over a trillion tons of the world’s carbon. That’s almost 42 % of all CO2 emissions caused by human activity in the pre-industrial era.
The meat industry (also referred to as the livestock sector) is responsible for about 14.5% of global greenhouse gas emissions.
Our pressure helped push the Government in Scotland to commit to ending sales of petrol and diesel cars and vans by 2030 and a challenging commitment to reduce car use kilometers by 20% by the same date.
We found that 13 billion tons of carbon are cycled through fungal networks annually.
We looked primarily at three different types of mycorrhizal fungi – arbuscular, ectomycorrhizal, and ericoid, and were able to find that collectively, these three groups of fungi have 13.12 billion tons of carbon dioxide allocated to them every year.
To put this number in perspective: 13.12 billion tons of CO2 was about 36% of global fossil fuel emissions last year. China is by far the biggest emitter of greenhouse gasses – its annual emissions in 2021 were 12.47 billion tons.
The U.S. emitted 4.75 billion tons of carbon dioxide in 2021 – mycorrhizal fungi take up nearly three times that each year. It’s a tremendous amount of carbon.
On the other hand, Hong Kong, Singapore, Chicago, New York, and Los Angeles had emissions that exceeded 150 million tons even though the cities had fewer than 20 million people.
Greenhouse gas (GHG) emissions fell by approximately 13% between 2019 and 2020, to just over 480 million tonnes of CO2.
The transport sector was the biggest contributor to the decline, with GHG emissions falling by 40% between 2019 and 2020.
Consumer expenditure still accounts for the most emissions; it was responsible for almost 28% of all greenhouse emissions in the UK in 2020.
Emissions of acid rain precursors fell by 12% between 2019 and 2020.
The total GHG intensity for the UK dropped by approximately 5% for the year 2020.
This is a 13% decline from 2019 and is the biggest single-year drop since these statistics began in 1990.
Emissions related to consumer expenditure in particular were down over 10% from the previous year, to 133 million tonnes (Mt Co2e) in 2020, which is one of the biggest annual reductions in this sector since 1990.
The U.S. Energy Information Administration estimates that in 2019, the United States emitted 5,130 million metric tons of energy-related carbon dioxide, while the global emissions of energy-related carbon dioxide totaled 33,621.5 million metric tons.
When it comes to reducing the global average individual carbon footprint from 6.3 tons (2020) to 2.1 tons in 2030.

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Emerging Trends

Growth in Carbon Capture and Storage (CCS) Technologies: The carbon dioxide market is witnessing significant advancements in carbon capture and storage (CCS) technologies. These technologies are being increasingly adopted to capture CO₂ emissions from industrial processes and fossil fuel combustion. Companies like ExxonMobil and Air Liquide are investing heavily in CCS projects to reduce their carbon footprints and comply with stringent environmental regulations. For instance, Air Liquide announced plans to build one of Europe’s largest CCS units in Rotterdam, which is expected to be operational by 2026.
Expanding Applications in the Food & Beverage Industry: The food and beverage industry remains a major consumer of CO₂, primarily for carbonation and refrigeration. The demand for CO₂ in this sector is driven by the growing consumption of carbonated beverages and processed foods. This trend is particularly strong in regions like Asia-Pacific and North America, where consumer preferences for ready-to-drink beverages and frozen foods are increasing.
Rising Use in Enhanced Oil Recovery (EOR): CO₂ is extensively used in the oil and gas industry for enhanced oil recovery (EOR) techniques. This method involves injecting CO₂ into oil reservoirs to increase oil extraction rates. EOR-CO₂ techniques can enhance oil recovery by 30% to 60% compared to traditional methods. The growing need to maximize output from existing oil fields is propelling the demand for CO₂ in this application.
Increasing Focus on Sustainable Practices: Sustainability is becoming a core focus for companies in the carbon dioxide market. Major players are adopting eco-friendly practices and investing in technologies that reduce CO₂ emissions. This includes the development of renewable energy projects and the use of CO₂ for producing sustainable fuels. These initiatives are supported by global efforts to combat climate change and reduce greenhouse gas emissions.
Regional Market Dynamics: North America leads the global CO₂ market, driven by robust demand from the food and beverage, healthcare, and oil and gas industries. Asia-Pacific is also showing significant growth, particularly in China and India, due to rapid industrialization and increasing beverage consumption. Europe remains a key market with a strong focus on environmental sustainability and innovative uses of CO₂ in various industries.

Use Cases

Food and Beverage Industry: Carbon dioxide (CO₂) is extensively used in the food and beverage industry for carbonation in drinks and as a refrigerant in food processing and storage. In 2023, the food and beverage segment accounted for approximately 34.5% of the total CO₂ market share. The demand for carbonated beverages, such as soda and beer, drives this application. Additionally, CO₂ is used in modified atmosphere packaging (MAP) to extend the shelf life of perishable goods by inhibiting microbial growth.
Enhanced Oil Recovery (EOR): The oil and gas industry utilizes CO₂ for enhanced oil recovery (EOR) techniques, which involve injecting CO₂ into oil reservoirs to increase extraction rates. This method can enhance oil recovery by 30% to 60% compared to traditional techniques. The EOR application accounted for a significant portion of CO₂ usage, particularly in regions like North America, where maximizing output from mature oil fields is essential.
Medical Applications: In the medical field, CO₂ is used in minimally invasive surgeries, such as laparoscopic and endoscopic procedures, to enlarge and stabilize body cavities. The medical segment’s share of the CO₂ market is growing, driven by advancements in surgical techniques and the rising number of such procedures globally. CO₂ is also employed in cryotherapy, where it is used as a cooling agent to treat various medical conditions.
Chemical Industry: The chemical industry uses CO₂ as a feedstock for producing chemicals like urea, methanol, and salicylic acid. This sector benefits from the availability of CO₂ as a byproduct from industrial processes, particularly ethyl alcohol production, which contributed over 33% of the CO₂ supply in 2023. The chemical industry’s demand for CO₂ is expected to grow as new applications and technologies emerge.
Firefighting: CO₂ is a common extinguishing agent in firefighting, especially for electrical fires and flammable liquid fires. It works by displacing oxygen and cooling the flames, making it effective and safe for use in sensitive environments like data centers and industrial settings. The firefighting application represents a stable and essential segment of the CO₂ market.
Metal Fabrication: In metal fabrication, CO₂ is used as a shielding gas in welding processes to prevent oxidation and contamination of the weld pool. This application is critical in industries such as automotive manufacturing, construction, and shipbuilding. The use of CO₂ in metal fabrication contributes to the market’s stability and growth, supported by ongoing industrial activities.

Key Players Analysis

Avail Gás plays a significant role in the carbon dioxide sector by producing and supplying CO₂ for various applications, including food preservation, beverage carbonation, and industrial processes. The company focuses on delivering high-purity CO₂ to ensure optimal performance in its applications, particularly in the food and beverage industry, where CO₂ is essential for carbonation and refrigeration. Additionally, Acail Gás provides CO₂ for environmental uses such as pH regulation in water treatment and greenhouse enhancement, supporting productivity and growth.

Air Liquide is a major player in the carbon dioxide market, leveraging advanced technologies to capture, purify, and utilize CO₂ across multiple industries. Recently, the company has focused on carbon capture and storage (CCS) projects, including the construction of a significant CCS unit in Rotterdam. This initiative aims to capture and store CO₂ emissions from industrial processes, reducing the environmental impact and supporting sustainability goals. Air Liquide’s comprehensive approach includes supplying CO₂ for applications in the food and beverage sector, healthcare, and enhanced oil recovery.

Air Products and Chemicals, Inc. is a leading player in the carbon dioxide market, focusing on innovative solutions for CO₂ capture and utilization. The company has made significant investments in carbon capture and storage (CCS) technologies, including a large-scale system in Port Arthur, Texas, which captures about 1 million tons of CO₂ annually from hydrogen production. Additionally, Air Products is developing the world’s largest blue hydrogen production facility in Louisiana, expected to capture 95% of its CO₂ emissions.

Greco Gas Inc. plays a crucial role in the carbon dioxide sector by supplying high-purity CO₂ for various industrial applications. The company provides CO₂ for food and beverage carbonation, medical uses, and industrial processes, ensuring consistent quality and reliability. Greco Gas is known for its commitment to customer service and its ability to deliver tailored CO₂ solutions to meet specific industry needs.

Linde AG is heavily involved in the carbon dioxide sector through advanced carbon capture, utilization, and storage (CCUS) technologies. The company has partnered with Heidelberg Materials to develop large-scale carbon capture projects and has signed an agreement with ExxonMobil for the long-term off-take of CO₂ from its clean hydrogen production in Beaumont, Texas. These initiatives aim to significantly reduce carbon emissions, contributing to Linde’s sustainability goals and supporting global decarbonization efforts.

Messer Group focuses on providing high-purity carbon dioxide for various industrial applications, including food and beverage carbonation, chemical processing, and medical uses. The company emphasizes sustainability and efficiency in its operations, ensuring the safe and reliable supply of CO₂ to its customers. Messer Group’s commitment to innovation and customer service positions it as a key player in the carbon dioxide market, catering to diverse industrial needs.

Sicgil India Limited is a leading manufacturer and distributor of carbon dioxide (CO₂) and dry ice in India. The company provides high-quality CO₂ solutions for various industries, including food and beverage, pharmaceuticals, and chemical processing. With extensive production, storage, and distribution capabilities across India, Sicgil ensures efficient delivery of CO₂ and dry ice to meet diverse client needs. Their commitment to quality and innovation has established them as the preferred supplier in the region, adhering to international standards like ISO 9001 and FSCC 22000 certifications.

SOL Group operates extensively in the carbon dioxide sector, providing high-purity CO₂ for industrial applications such as food and beverage carbonation, medical gases, and chemical processing. The group emphasizes sustainability and efficiency in its operations, supplying CO₂ that meets stringent quality standards. With a strong presence in Europe, SOL Group continuously invests in advanced technologies and infrastructure to enhance its production and distribution capabilities, ensuring reliable supply and customer satisfaction across various industries.

Strandmøllen A/S plays a significant role in the carbon dioxide sector by capturing and purifying CO₂ from biogas plants. The company focuses on producing food-grade CO₂, which is utilized in beverage carbonation, food preservation, and industrial applications. Strandmøllen’s innovative approach helps reduce greenhouse gas emissions and supports sustainable energy production. Their plant in Denmark, in collaboration with Nature Energy, purifies CO₂ from biogas, creating a reliable supply of sustainable CO₂ for the market.

Conclusion

The Carbon Dioxide market is poised for significant growth, driven by increasing demand across various industries such as food and beverage, healthcare, and enhanced oil recovery. The market size is expected to rise from USD 10.8 billion in 2023 to approximately USD 18.3 billion by 2032, growing at a CAGR of 5.4%. Innovations in carbon capture and storage (CCS) technologies and sustainable CO₂ production methods are crucial factors contributing to this expansion.

However, challenges such as high production costs and stringent regulatory requirements need to be addressed. Key players like Linde AG and Air Products are actively investing in advanced technologies to enhance CO₂ capture and utilization, supporting the market’s growth trajectory and the global shift towards sustainability.

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