Global CO2 Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In December 2023, Air Liquide announced that it will build one of Europe’s largest carbon capture & storage unit at its hydrogen production plant in Rotterdam, the Netherlands, utilizing its Cryocap technology. The facility is expected to be operational in 2026.

• In April 2023, Linde signed a long-term agreement with ExxonMobil for off-take of CO2. As per the agreement, ExxonMobil shall transport and store 2.2 million metric tons of CO2 annually from Linde’s hydrogen production plant.

The Global CO2 Market has been segmented by Source, Form, Types, Application and Geography, source, with key categories including natural CO2, industrial CO2, and biological CO2. Natural CO2 is sourced from geological reservoirs, including natural gas fields and volcanic eruptions, and is a significant component in the production of food and beverages. Industrial CO2, on the other hand, is primarily produced as a by-product of chemical processes such as hydrogen production, ethanol fermentation, and ammonia production. Biological CO2 is derived from the fermentation process in industries such as bioethanol and biogas production, which is gaining attention as a more sustainable source. The growing need for CO2 in various industries, from food preservation to enhanced oil recovery (EOR), is driving demand across all these sources, although industrial CO2 remains the largest contributor to the market.

In terms of form, the CO2 market is segmented into liquid CO2, gas CO2, and solid CO2 (dry ice). Liquid CO2 is widely used in the food and beverage industry for carbonating beverages and in chemical applications for refrigeration. Gas CO2 is commonly used for applications such as enhanced oil recovery, fire extinguishing, and as a raw material in the production of chemicals like urea and methanol. Solid CO2, or dry ice, finds its application in the food and logistics industry, especially in transporting perishable goods at low temperatures. The diverse forms of CO2 cater to the varying needs of different industries, with liquid and gas CO2 leading in terms of market demand.

Geographically, the global CO2 market is analyzed across North America, Europe, Asia-Pacific, and other regions. North America holds a dominant market share, primarily due to the widespread use of CO2 in industries like oil and gas, food processing, and pharmaceuticals. The United States, in particular, has a well-established CO2 supply chain, driven by industrial CO2 production, and the growing demand for CO2 in enhanced oil recovery. Europe is another significant market, with increasing demand for CO2 in beverage carbonation, food preservation, and healthcare applications. Asia-Pacific is expected to witness the highest growth, driven by rapid industrialization in countries such as China and India, where CO2 is increasingly used in the food, pharmaceutical, and manufacturing industries. As the demand for CO2 continues to rise, particularly in energy-intensive applications, regions across the globe are investing in more sustainable CO2 production technologies to meet this demand while addressing environmental concerns.

Global CO2 Segment Analysis

In this report, the Global CO2 Market has been segmented by Source, Form, Types, Application and Geography.

Global CO2 Market, Segmentation by Source

The Global CO2 Market is segmented by Source into Ethyl Alcohol, Hydrogen, Ethylene Oxide, Substitute Natural Gas, and Others.

The global CO2 market is segmented by source into several key categories, including ethyl alcohol, hydrogen, ethylene oxide, substitute natural gas (SNG), and others. Ethyl alcohol is one of the primary sources of CO2 production, particularly through fermentation processes in the alcohol industry. This source is significant due to the growing demand for ethanol in fuel production and its role in carbon capture during fermentation. Hydrogen, another major source, produces CO2 as a byproduct during hydrogen production via steam methane reforming (SMR). With the rising focus on hydrogen as a clean energy source, the CO2 generated here is a critical factor in sustainability efforts.

Ethylene oxide, a key chemical used in the production of antifreeze, detergents, and plastics, also generates substantial CO2 emissions. The demand for ethylene oxide, driven by industrial and commercial applications, contributes notably to the CO2 market. Substitute natural gas (SNG), produced through processes such as coal gasification, also serves as a source of CO2 emissions. SNG is considered an alternative to traditional natural gas and is used to reduce dependence on conventional gas sources, but it generates CO2 during its production, making it a relevant segment in the carbon dioxide market.

The "others" category in the CO2 market includes various smaller sources, such as cement production, steel manufacturing, and waste incineration. These sources contribute to CO2 emissions, which are captured or processed for use in various applications, from beverage carbonation to enhanced oil recovery (EOR). The growing emphasis on reducing industrial CO2 emissions is driving the demand for carbon capture technologies and alternative, low-emission processes across these segments. Each source plays a role in the overall CO2 market, with their contributions shaped by regulatory policies, technological advancements, and shifting industrial needs.

Global CO2 Market, Segmentation by Form

The Global CO2 Market is segmented by Form into Liquid, Gas, and Solid.

The global CO2 market, segmented by form, includes three primary categories: liquid CO2, gas CO2, and solid CO2 (dry ice). Liquid CO2 is widely used across various industries due to its ability to be easily transported and stored under pressure. It is primarily utilized in the food and beverage industry for carbonating drinks, in chemical processing, and in refrigeration systems, where it is preferred for its cost-effectiveness and versatility. Additionally, liquid CO2 is crucial in enhanced oil recovery (EOR) operations, where it is injected into oil fields to increase extraction efficiency. Its role in industrial processes, particularly in refrigeration and food storage, is a significant driver of market growth.

Gas CO2 is the most commonly used form of carbon dioxide, with applications spanning multiple sectors. It is essential in industries such as agriculture, where it is used to enhance plant growth in controlled environments like greenhouses. Gas CO2 is also critical in the oil and gas industry for EOR, as it helps to increase the pressure in reservoirs, aiding in the extraction of more oil. The medical field uses gas CO2 in respiratory equipment, while it also plays a role in fire suppression systems due to its ability to displace oxygen. The growing industrial demand for gas CO2, particularly in food packaging, beverage carbonation, and industrial gas applications, is fueling its continued market dominance.

Solid CO2, or dry ice, is used primarily for refrigeration and cooling applications. It is particularly beneficial for transporting perishable goods like food and pharmaceuticals, as it maintains low temperatures without the need for mechanical refrigeration. Dry ice is also used in the entertainment industry for special effects, such as creating fog, and in cleaning applications, where it is employed in a process called dry ice blasting to clean surfaces without damaging them. The growing demand for dry ice in the logistics and healthcare sectors is propelling its use, particularly in the cold chain transportation of vaccines, medications, and other temperature-sensitive products. As industries increasingly focus on the safe and efficient transportation of goods, the market for solid CO2 continues to expand, with significant contributions to the overall CO2 market growth.

Global CO2 Market, Segmentation by Types

The Global CO2 Market is segmented by Types into Captured CO2, Product CO2, Natural CO2 and Synthetic CO2.

This type of CO2 is a key component in carbon capture and storage (CCS) technologies, which aim to reduce greenhouse gas emissions and mitigate climate change. Captured CO2 is increasingly used in applications like enhanced oil recovery and chemical production, where it can be effectively repurposed.

Industrial By-Product CO2 is generated as a by-product of various industrial activities, including ammonia production, fermentation in breweries, and cement manufacturing. This type of CO2 is often captured and purified for use in other industrial processes, thereby minimizing waste and improving overall efficiency. For instance, CO2 from fermentation processes in breweries can be captured and reused for carbonation in the beverage industry. The utilization of industrial by-product CO2 helps in reducing the environmental impact of industrial operations by recycling emissions that would otherwise contribute to atmospheric CO2 levels.

Natural CO2 and Synthetic CO2 represent other significant segments of the market. Natural CO2 is extracted from underground geological formations, where it has been trapped for millions of years. This type of CO2 is often used in applications requiring high-purity CO2, such as food and beverage production and medical applications. Synthetic CO2, on the other hand, is produced through chemical reactions involving carbon-containing compounds. This type of CO2 can be tailored to specific purity and quality requirements for various industrial uses. The diverse applications and sources of these different types of CO2 highlight the versatility and importance of CO2 in various industrial and commercial sectors.

Global CO2 Market, Segmentation by Application

The Global CO2 Market is segmented by Application into Enhanced Oil Refinery, Food & Beverages, Precipitated Calcium Carbonate and Others..

Enhanced Oil Recovery is a major application of CO2, where it is injected into oil reservoirs to increase the extraction of crude oil. This method not only improves the efficiency of oil production but also provides a way to sequester CO2, thereby reducing greenhouse gas emissions. The EOR segment is expected to witness significant growth due to the increasing demand for oil and the need for more efficient extraction techniques.

In the Food and Beverages industry, CO2 plays a critical role in various processes such as carbonation of soft drinks, preservation through refrigeration, and packaging. The growing demand for carbonated beverages and processed foods is driving the demand for CO2 in this sector. Additionally, CO2 is used in modified atmosphere packaging (MAP) to extend the shelf life of perishable food products, ensuring freshness and quality. This segment is bolstered by the expanding global food and beverage market, particularly in emerging economies.

Precipitated Calcium Carbonate (PCC) is another significant application of CO2, used primarily in the paper, plastics, and paint industries. In the paper industry, PCC is used as a filler to enhance the brightness and opacity of paper products. The plastics industry utilizes PCC to improve the mechanical properties and durability of plastic products, while the paint industry uses it as a pigment and filler to improve paint quality. The demand for high-quality materials in these industries drives the CO2 market in the PCC segment, highlighting the versatile applications of CO2 across different industrial sectors.

Global CO2 Market, Segmentation by Geography

In this report, the Global CO2 Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global CO2 Market Share (%), by Geographical Region, 2024

The Global CO2 Market is segmented by geography into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America, particularly the United States and Canada, is a leading region due to its extensive industrial base and advanced technologies in carbon capture and storage (CCS). The region’s robust oil and gas sector drives demand for CO2 in enhanced oil recovery, while the food and beverage industry contributes significantly to CO2 consumption for carbonation and preservation purposes.

In Europe, stringent environmental regulations and ambitious climate goals have spurred growth in CO2 capture and utilization technologies. Countries like Germany, the UK, and France are at the forefront of implementing CO2 reduction strategies and developing innovative applications, such as carbon-neutral industrial processes and sustainable building materials. The European market benefits from substantial investments in green technologies and research initiatives aimed at reducing carbon emissions and promoting a circular economy.

The Asia-Pacific region is experiencing rapid industrialization and urbanization, leading to increased CO2 demand across various sectors. Countries like China and India are significant contributors to global CO2 emissions but are also investing in technologies for capturing and utilizing CO2 to mitigate environmental impact. The growing food and beverage industry in this region, coupled with expanding infrastructure and manufacturing activities, further drives the demand for CO2. Latin America and the Middle East & Africa are emerging markets with potential for growth, driven by industrial expansion and increasing adoption of CO2 utilization technologies.