Carbon Dioxide Market Size, Share & Trends Analysis By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas, Others), By Form (Solid, Liquid, Gas), By Application (Food & Beverages, Oil & Gas, Medical, Rubber, Firefighting, Others), By Region, And Segment Forecasts, Market Size, Market Share, and Forecast Analysis, 2024 – 2034

Carbon Dioxide Market Report Overview

According to Novatrends Market Intelligence, the global carbon dioxide market was valued at USD 9,730.0 million in 2024 and is anticipated to propel at a growth rate of 4.81% from 2025-2034. The demand for carbon dioxide is fueled by its wide range of applications across several industries. In the food and beverage sector, CO2 is essential for carbonation in soft drinks, beer, and sparkling water, as well as for food preservation and packaging. In agriculture, CO2 is used to enhance plant growth in greenhouses, leading to higher yields. The medical industry relies on CO2 for respiratory treatments, including during surgeries and in medical gas mixtures.

Additionally, the oil and gas industry use CO2 for enhanced oil recovery, injecting it into oil fields to increase the extraction of crude oil. CO2 also plays a crucial role in various industrial processes, including chemical manufacturing, refrigeration, and fire suppression systems.

Carbon Dioxide Market Recent Developments

Carbon dioxide market is anticipated to propel at a compounded annual growth rate (CAGR) of 4.81% from 2025-2034. The carbon dioxide market is witnessing significant expansion, driven by increasing demand in the food and beverage industry for carbonation and preservation, as well as in agriculture for enhancing plant growth. Additionally, its use in medical applications, industrial processes, and the oil and gas industry for enhanced oil recovery is contributing to the market's growth.

Carbon dioxide market is highly competitive due to the presence of major market players actively engaged in implementing strategic initiatives such as increasing investments, new product launches, merger & acquisitions, and others. For instance,

1. In August 2024, Aerbio launched its pilot facility to convert industrial carbon dioxide and hydrogen in proton. It is a protein feedstock that is used salmon and chickens. The facility shall produce 200 kg of proton per month.
2. In June 2023, China Energy Investment Corporation (China Energy) inaugurated a massive carbon capture, storage, and reuse facility with an annual storage capacity of 500,000 tons of CO2 at its coal-fired power plant in Jiangsu Province. This initiative aims to support carbon neutrality efforts. The captured CO2, which is 99.99% pure, will be utilized in food packaging and the carbonation of beverages.
3. In April 2023, Linde entered into a long-term agreement with ExxonMobil for the off-take of CO2. Under this agreement, ExxonMobil will transport and store 2.2 million metric tons of CO2 per year from Linde’s hydrogen production facility.

Regional Overview

North America dominated the global carbon dioxide market in 2024 with a market revenue share of 38.80%. The demand for carbon dioxide in North America is driven by robust demand across several key industries. The food and beverage sector are a significant contributor, with high demand for CO2 in carbonated beverages and food preservation. The region's well-established agricultural industry also uses CO2 to enhance greenhouse crop yields.

Additionally, North America's advanced healthcare sector drives demand for CO2 in medical applications, such as respiratory therapies. The oil and gas industry, particularly in the U.S., contributes to the market through the use of CO2 for enhanced oil recovery, while various industrial processes, including chemical production and refrigeration, further bolster demand.

U.S. Carbon Dioxide Market Overview

The U.S. carbon dioxide market is a significant component of the global CO2 industry, driven by diverse applications across multiple sectors. In 2024, the market saw substantial growth, largely due to the expanding demand in the food and beverage industry, where CO2 is crucial for carbonation in drinks and preservation in food packaging. The increasing preference for carbonated beverages and the growing trend of ready-to-eat food products are key factors fueling this demand. Additionally, the agricultural sector in the U.S. heavily relies on CO2 for enhancing greenhouse crop yields, contributing to the overall market expansion.

The healthcare industry in the U.S. also plays a critical role in the carbon dioxide market. CO2 is extensively used in medical applications, particularly in surgeries and respiratory treatments. The advanced healthcare infrastructure in the U.S. supports a steady demand for CO2, which is essential in the creation of medical gas mixtures and for use in minimally invasive surgeries. Furthermore, the oil and gas industry utilize CO2 for enhanced oil recovery (EOR) techniques, a method that has seen increased adoption in the U.S. due to its ability to improve the extraction efficiency of mature oil fields.

The U.S. market is also characterized by its significant production capabilities and technological advancements in CO2 capture and utilization. With growing environmental concerns, there is a rising focus on sustainable practices, including carbon capture and storage (CCS) technologies. These advancements are aimed at reducing greenhouse gas emissions, turning CO2 into valuable products, and ensuring a sustainable supply of carbon dioxide for industrial applications. As a result, the U.S. carbon dioxide market is not only expanding in terms of demand but is also evolving with innovative approaches to CO2 management and utilization.

Source Overview

Ethyl Alcohol dominated the source segmentation across the global carbon dioxide market in 2024 with a market revenue share of 43.28%. The high demand for CO2 derived from ethyl alcohol is primarily driven by the beverage industry's reliance on fermentation processes, where CO2 is a byproduct. As the global consumption of alcoholic beverages, particularly beer and spirits, continues to rise, the production of ethyl alcohol increases, leading to a steady supply of CO2. This availability, combined with the relatively low cost of capturing CO2 from ethyl alcohol production, makes it a preferred source in the market.

Globally, the demand for carbon dioxide is influenced by several key industries that rely on this versatile gas for various applications. In the food and beverage sector, CO2 is essential for carbonation in soft drinks and alcoholic beverages, as well as for food preservation and packaging. The growing consumer preference for carbonated drinks and ready-to-eat products drives the demand for CO2 in this sector. Additionally, the agricultural industry contributes to the demand by using CO2 to enhance plant growth in controlled environments like greenhouses, improving crop yields and meeting the needs of an increasing global population.

The industrial and medical sectors further influence the global demand for carbon dioxide. In the industrial sector, CO2 is utilized in processes such as chemical manufacturing, refrigeration, and fire suppression systems. The oil and gas industry also contributes to the demand through the use of CO2 for enhanced oil recovery (EOR) techniques. Meanwhile, the medical sector's reliance on CO2 for respiratory treatments and surgeries supports consistent demand. As industries continue to innovate and expand, the global need for carbon dioxide is expected to grow, with ethyl alcohol remaining a key source due to its accessibility and cost-effectiveness.

Form Overview

Liquid dominated the form segmentation across the global carbon dioxide market in 2024 with a market revenue share of 66.78%. This dominance is primarily due to its widespread use across various industries, including food and beverage, where liquid CO2 is essential for carbonation, refrigeration, and preservation processes. Its ease of transport and storage, combined with its efficiency in large-scale industrial applications, makes liquid CO2 the preferred form for many businesses.

The demand for liquid carbon dioxide is further bolstered by its critical role in the oil and gas industry, particularly in enhanced oil recovery (EOR) techniques, where it is injected into oil fields to improve extraction rates. Additionally, the industrial sector's reliance on liquid CO2 for chemical manufacturing, metal fabrication, and environmental applications, such as wastewater treatment, continues to drive its market dominance.

Application Overview

Food & Beverages dominated the application segmentation across the global carbon dioxide market in 2024 with a market revenue share of 44.03%. This dominance is driven by the industry's heavy reliance on CO2 for essential processes like carbonation in soft drinks, beer, and other beverages. The rising global consumption of carbonated drinks, coupled with the growing popularity of ready-to-eat and preserved foods, has substantially increased the demand for CO2 within this sector.

Beyond carbonation, carbon dioxide plays a crucial role in food preservation and packaging. Modified atmosphere packaging (MAP), which uses CO2 to extend the shelf life of perishable goods, is increasingly adopted by food producers to meet the demands of a global market focused on convenience and reducing food waste. This technology helps maintain product freshness, making CO2 indispensable in the modern food supply chain.

The Food & Beverages sector's dominance in the CO2 market is also supported by its continuous innovation and expansion. As companies develop new products and explore sustainable packaging solutions, the demand for CO2 is expected to remain strong. Additionally, the sector's growth in emerging markets, where urbanization and changing lifestyles are driving increased consumption of packaged and carbonated foods, further cements its leading position in the global carbon dioxide market.

Market Characteristics

The carbon dioxide market is highly competitive, with numerous players offering a range of products and services across various industries, including food and beverage, healthcare, and oil and gas. Key players such as Acail Gás, Air Liquide, Air Products and Chemicals, Inc., Greco Gas Inc., and Linde AG dominate the market, providing essential CO2 solutions that cater to industrial applications, medical uses, and agricultural needs.

These established players are being challenged by emerging companies and startups, which are innovating in areas such as carbon capture and utilization (CCU), and sustainable CO2 production methods. Companies focusing on green technologies, such as CarbonCure and Climeworks, are gaining traction with their advanced carbon capture solutions and sustainable CO2 sourcing, appealing to industries focused on reducing their carbon footprint. Additionally, technology giants like Google and Amazon are exploring ways to integrate CO2 management solutions within their broader sustainability and energy initiatives, potentially disrupting the traditional market dynamics.

The carbon dioxide market is also witnessing a trend of consolidation, with larger companies acquiring smaller startups and forming strategic partnerships to expand their product offerings and technological capabilities. This trend is driven by the need to meet the growing demand for CO2 in a sustainable manner while addressing environmental concerns. Overall, the competitive landscape of the carbon dioxide market is marked by a blend of established leaders, innovative startups, and new entrants, all striving to enhance their market presence and offer cutting-edge solutions to meet global CO2 needs.

Global Carbon Dioxide Market Report- Scope (Customizable)