Global Carbon Dioxide Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

The Global Carbon Dioxide Market has been segmented by Source, Form, Application and Geography. By source, the market includes naturally occurring CO₂, which is extracted from underground reservoirs, and CO₂ derived from industrial processes, such as ammonia production, ethanol fermentation, and combustion of fossil fuels. Increasing emphasis on sustainability has spurred growth in the carbon capture and storage (CCS) sector, where CO₂ is captured from industrial emissions. Among these, industrially sourced CO₂ is the dominant segment, as industries focus on repurposing emissions to reduce environmental impact.

In terms of application, the market is divided into food and beverages, medical, oil and gas, fire suppression, and others. The food and beverage segment holds a significant share, driven by demand for carbonated drinks and food preservation techniques. The medical sector is also growing, with CO₂ being essential in surgeries and cryotherapy. In the oil and gas industry, CO₂ is widely used for enhanced oil recovery (EOR), where it helps increase extraction efficiency from mature reservoirs. This segment continues to grow as global energy demand remains robust, particularly in developing regions.

When segmented by end-use industry, the market includes agriculture, healthcare, energy, manufacturing, and chemicals. The energy sector leads due to EOR applications, while the healthcare industry benefits from increasing medical procedures that require CO₂. Meanwhile, manufacturing and chemicals leverage CO₂ for processes such as welding, pH control, and chemical synthesis. Emerging industries, such as the production of synthetic fuels and sustainable construction materials, are expected to contribute significantly in the future, reflecting the growing trend of integrating CO₂ into the circular economy.

Global Carbon Dioxide Segment Analysis

In this report, the Global Carbon Dioxide Market has been segmented by Source, Form, Application and Geography.

Global Carbon Dioxide Market, Segmentation by Source

The Global Carbon Dioxide Market has been segmented by Source into Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas and Others.

The global carbon dioxide (CO₂) market segmentation by source reflects the diverse industrial processes that generate CO₂ as a by-product. Among these, hydrogen production is a significant contributor. Hydrogen is often produced through steam methane reforming, which emits considerable amounts of CO₂. With the rising demand for hydrogen in energy transition strategies, particularly for green and blue hydrogen, the capture and reuse of CO₂ from hydrogen production are gaining momentum. This not only addresses emissions concerns but also provides a reliable source of industrial-grade CO₂.

Ethyl alcohol (ethanol) production is another prominent source of CO₂. Ethanol plants release CO₂ during the fermentation process, making them a significant contributor to the CO₂ supply chain. This CO₂ is widely used in industries such as food and beverages for carbonation and refrigeration. Ethanol-based CO₂ is considered relatively sustainable as it is derived from bio-based processes. The increasing production of bioethanol, particularly in regions like North America and Asia-Pacific, is driving the growth of CO₂ derived from this source.

Other key sources include ethylene oxide and substitute natural gas (SNG) production. Ethylene oxide, used in the manufacture of chemicals like ethylene glycol, releases CO₂ during its production process. Similarly, SNG, an alternative to natural gas, produces CO₂ during synthesis. These sources are crucial for supplying CO₂ to industries such as healthcare, manufacturing, and oil recovery. The "others" category includes processes like ammonia production and fossil fuel combustion. As carbon capture technologies become more efficient and widespread, CO₂ derived from these industrial sources is expected to play an increasing role in the global market, aligning with sustainability goals and the circular economy.

Global Carbon Dioxide Market, Segmentation by Form

The Global Carbon Dioxide Market has been segmented by Form into Solid, Liquid and Gas.

The solid form of carbon dioxide, commonly referred to as dry ice, is widely utilized across various industries due to its unique properties. Dry ice sublimates directly from a solid to a gas, making it ideal for applications requiring cooling without leaving a liquid residue. This form is extensively used in the transportation and storage of perishable goods, especially in the food and pharmaceutical industries, where maintaining low temperatures is critical. Additionally, its application in industrial cleaning processes, known as dry ice blasting, has gained popularity for being non-abrasive and environmentally friendly, further driving its demand.

In its liquid form, carbon dioxide is primarily employed in industrial applications that require precise handling and control. Liquid CO₂ is a vital component in enhanced oil recovery (EOR) processes, where it is injected into oil wells to improve extraction efficiency. It is also extensively used in the beverage industry for carbonating drinks and in the food industry for freezing and chilling products. Liquid CO₂ is valued for its ease of storage and transport over short distances, making it a preferred choice for applications requiring large-scale industrial supply.

The gaseous form of carbon dioxide finds applications across a diverse range of sectors, including welding, medical uses, and greenhouse farming. In welding and metal fabrication, gaseous CO₂ is used as a shielding gas to protect welds from atmospheric contamination. In healthcare, it plays a role in minimally invasive surgeries and medical device manufacturing. Additionally, CO₂ gas is essential for greenhouse farming, where it enhances plant growth by optimizing photosynthesis. The flexibility and versatility of gaseous CO₂ make it a cornerstone for many end-use industries, ensuring its sustained demand in the global market.

Global Carbon Dioxide Market, Segmentation by Application

The Global Carbon Dioxide Market has been segmented by Application into Food & Beverages, Oil & Gas, Medical, Rubber and Others.

The food and beverage industry represents a significant application segment for carbon dioxide (CO₂) due to its versatile uses. In beverages, CO₂ is widely utilized for carbonation, enhancing the sensory experience of drinks like soda, beer, and sparkling water. It also plays a critical role in food processing and preservation, particularly in freezing, chilling, and Modified Atmosphere Packaging (MAP), which extends the shelf life of perishable items. As consumer demand for convenience foods and carbonated beverages continues to grow, the reliance on CO₂ in this sector is expected to remain strong.

In the oil and gas sector, CO₂ is predominantly employed in Enhanced Oil Recovery (EOR) processes. By injecting CO₂ into depleted or mature oil reservoirs, the viscosity of crude oil is reduced, facilitating its flow and significantly improving extraction rates. This technique has gained traction as companies aim to optimize output from existing reserves while reducing operational costs. Additionally, the use of CO₂ in drilling and fracturing fluids further underscores its importance in this industry. The integration of carbon capture and utilization (CCU) technologies has also opened avenues for sustainable CO₂ use in the oil and gas segment.

The medical, rubber, and other industries also rely on CO₂ for diverse applications. In the medical field, CO₂ is used in surgeries, anesthesia, and respiratory therapies. It is also employed in the sterilization of medical equipment, ensuring safety and hygiene standards. In the rubber industry, CO₂ is utilized in the vulcanization process, aiding in the production of high-quality rubber products. Beyond these, CO₂ has niche applications in firefighting, water treatment, and as a refrigerant in various industrial and commercial settings. The broad spectrum of uses across these sectors highlights the integral role of CO₂ in driving innovation and supporting critical operations worldwide.a

Global Carbon Dioxide Market, Segmentation by Geography

In this report, the Global Carbon Dioxide Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Carbon Dioxide Market Share (%), by Geographical Region, 2024

The global carbon dioxide market share by geographical region reveals significant variations based on industrial activity, technological adoption, and regional priorities. North America accounts for a substantial share of the market, driven by advancements in carbon capture and storage (CCS) technologies and a robust demand from the food and beverage, oil and gas, and healthcare sectors. The United States, with its strong industrial base and government support for emissions reduction technologies, leads the region. Enhanced oil recovery (EOR) applications, particularly in the Gulf Coast region, further bolster North America’s dominance in the CO₂ market.

Europe is another key player, accounting for a significant market share due to its stringent environmental regulations and commitment to reducing greenhouse gas emissions. Countries like Germany, the United Kingdom, and Norway are at the forefront of adopting carbon capture, utilization, and storage (CCUS) technologies. The European Union’s Green Deal and initiatives to promote the circular economy have accelerated investments in repurposing CO₂ for industrial applications, including synthetic fuels, chemicals, and sustainable construction materials. Additionally, the region’s strong food and beverage industry contributes significantly to its CO₂ market share.

The Asia-Pacific region is rapidly emerging as a major market for carbon dioxide, supported by growing industrialization, urbanization, and demand from the manufacturing and food processing sectors. China and India are leading contributors, driven by their expansive industrial bases and increasing adoption of CO₂-based technologies. In particular, the rising use of CO₂ in enhanced oil recovery and its integration into agriculture for greenhouse farming and refrigeration applications are driving growth in the region. However, challenges such as inadequate carbon capture infrastructure and varying environmental regulations may affect market expansion. Nonetheless, as governments in Asia-Pacific invest in greener technologies, the region is expected to see robust growth in its CO₂ market share.

This report provides an in depth analysis of various factors that impact the dynamics of Global Carbon Dioxide Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Industrial Applications Expansion
• Rising Use in Enhanced Oil Recovery (EOR)
• Demand in Food and Beverage Industry

  The food and beverage industry has become a significant driver for the global carbon dioxide (CO₂) market, primarily due to its widespread use in various applications. CO₂ is essential in carbonating beverages like soft drinks, beer, and sparkling water, where it enhances taste, texture, and shelf life. The rising global consumption of carbonated drinks, especially in emerging economies, is a major factor propelling demand. Additionally, CO₂ is used for chilling and freezing in food processing, ensuring efficient preservation and maintaining product quality during transportation and storage.

  In the food packaging sector, carbon dioxide plays a crucial role in Modified Atmosphere Packaging (MAP), which helps extend the shelf life of perishable goods by controlling oxygen levels and reducing microbial growth. With the growing preference for convenience foods and ready-to-eat meals, the demand for MAP and consequently for CO₂ has surged. The increasing focus on reducing food waste further supports the adoption of CO₂ in packaging solutions, making it a valuable component in addressing sustainability concerns within the food industry.

  The trend towards healthier and natural products has also influenced the demand for CO₂ in the production of beverages. For instance, the rising popularity of naturally carbonated drinks and low-sugar alternatives has spurred innovation in the beverage sector, creating opportunities for CO₂ suppliers. As consumers continue to seek diverse and innovative food and beverage products, the role of CO₂ in ensuring quality and delivering desired sensory experiences is expected to remain pivotal.

Restraints

• Environmental Concerns and Regulatory Challenges
• High Transportation Costs

  The transportation of carbon dioxide (CO₂) poses a significant challenge due to its physical properties and the need for specialized equipment. CO₂ is commonly transported in its liquefied state under high pressure or low temperatures, requiring insulated and pressurized containers or tankers. This specialized infrastructure increases logistical expenses, especially for long-distance transportation. Additionally, maintaining the necessary conditions during transit to prevent CO₂ from reverting to its gaseous state adds to operational costs, making transportation one of the most expensive aspects of the CO₂ supply chain.

  Geographic disparities between CO₂ production facilities and end-user industries exacerbate transportation costs. Many industrial plants that capture or produce CO₂ are located far from the regions where demand is highest, such as urban centers or agricultural areas using CO₂ for greenhouse farming. This creates the need for extensive transport networks. Rising fuel prices and increased regulatory compliance for greenhouse gas emissions during transportation further inflate costs, putting pressure on both suppliers and end-users.

  To address these challenges, there is growing interest in developing decentralized CO₂ production facilities closer to consumption hubs. Advancements in carbon capture and storage (CCS) technology could enable localized capture from industrial emissions, reducing dependency on long-haul transportation. However, these solutions require significant investment and time to implement, leaving high transportation costs as a persistent barrier in the near term. This constraint underscores the need for more cost-effective logistics strategies to support the expanding CO₂ market.

Opportunities

• Innovations in Carbon Capture and Storage (CCS) Technologies
• Expanding Uses in Greenhouse Farming

  The agricultural sector has witnessed a growing adoption of carbon dioxide (CO₂) in greenhouse farming, where it plays a crucial role in enhancing plant growth and productivity. CO₂ enrichment in controlled environments like greenhouses stimulates photosynthesis, leading to faster growth rates, improved yields, and better crop quality. This technique is especially valuable in regions with limited arable land or challenging climatic conditions, where maximizing productivity per unit area is essential. The rising demand for high-quality produce, including fruits, vegetables, and flowers, has significantly contributed to the increased use of CO₂ in greenhouse farming.

  As urbanization reduces the availability of farmland, greenhouse farming has emerged as a sustainable solution to meet the food demands of growing populations. CO₂ enrichment systems are increasingly integrated into smart greenhouse designs that use automated technology to monitor and adjust CO₂ levels for optimal plant growth. Furthermore, the trend toward organic and locally grown produce has fueled investments in advanced greenhouse facilities, many of which utilize CO₂ to improve output without the need for chemical fertilizers, aligning with consumer preferences for eco-friendly agricultural practices.

  The expansion of greenhouse farming supported by CO₂ usage is further driven by initiatives promoting sustainable agriculture and carbon sequestration. By utilizing CO₂ emissions from industrial sources for greenhouse enrichment, farmers can simultaneously enhance productivity and reduce atmospheric CO₂ levels, creating a circular economy approach. Governments and organizations supporting carbon capture and utilization (CCU) are encouraging partnerships between industries and agriculture to leverage CO₂ for food production, fostering innovation and reducing the environmental impact of both sectors. This expanding application underscores the vital role of CO₂ in transforming modern agriculture.