The Asia Pacific carbon dioxide market size was valued at USD 3.18 billion in 2024 and is projected to grow at a CAGR of 5.3% from 2025 to 2030. The rapid expansion of the food and beverage industry in the region, coupled with the increasing usage of carbon dioxide in medical and industrial segments, has resulted in a substantial market demand in recent years. Additionally, regional governments are encouraging research and development activities with regard to carbon capture storage and utilization as a means to limit carbon emissions. This is expected to optimize the manufacturing of carbon dioxide from carbon emissions at an economical cost and can also prove to be an innovative solution to reuse the emitted carbon for any suitable application.
The extensive popularity of beverages and soft drinks among regional consumers and their consistently strong sales present another notable growth avenue for the Asia Pacific carbon dioxide industry. There has been an increased demand for these products due to the rising disposable income of people in Southeast Asian economies and the presence of several major restaurant chains and retail outlets. Furthermore, countries such as India, Pakistan, and Vietnam have seen an increase in packaged and frozen food exports. Many companies have opened manufacturing facilities for meat and other packaged products exported to other countries globally. The demand for food-grade carbon dioxide is expected to grow steadily in this sector, as it is an essential component for preserving and increasing packaged foods' shelf life.
Growth in infrastructure and construction activities due to improvements in standards of living have also enabled regional market expansion, as CO₂ is used as a shielding gas in arc welding processes that form a vital part of these projects. Carbon dioxide is further utilized in carbonation curing, wherein it is injected into masonry blocks or precast concrete to speed up the curing procedure. This ensures reduced curing time, material strength improvement, and minimization of carbon footprint. The CarbonCure technology, which injects CO2 into fresh concrete to improve its performance and sequester the carbon dioxide, has been adopted by concrete manufacturers and construction projects to reduce emissions while enhancing concrete quality. Such developments are anticipated to ensure the continued growth of the Asia Pacific carbon dioxide industry in the coming years.
Innovations in carbon dioxide generation are being driven by the need for more sustainable, efficient, and diverse ways to produce CO2 for various industrial applications. Regional companies are expected to move towards these solutions to address climate change challenges and create new opportunities for utilizing CO2 in industries. For instance, the Direct Air Capture technology involves systems that extract CO2 directly from the atmosphere. These systems typically use chemical processes to bind and capture the compound, which can then be stored or used for industrial purposes. Such innovations are crucial for achieving net-zero emissions goals. Another well-known technology is Bioenergy with Carbon Capture and Storage (BECCS), which involves growing biomass that absorbs CO2 as it grows and then using that biomass to generate energy while capturing and storing the released carbon dioxide.
The ethyl alcohol (ethanol) segment accounted for the largest revenue share of 33.8% in 2024 in the Asia Pacific carbon dioxide industry. The fermentation process used to produce ethanol generates carbon dioxide as a by-product. This CO2 is often captured, purified, and used for carbonation in soft drinks, beer, and other beverages. Ethanol is increasingly used as a renewable energy source in the form of bioethanol, particularly as an alternative to gasoline. The fermentation process for bioethanol generates CO₂, which is released during production. Ethanol combustion is another notable source, as this process releases water vapor and carbon dioxide. Because the combustion of ethanol is particulate-free, it is a preferred source of high-purity carbon dioxide. Thus, the availability of several ways to produce CO2 has driven the use of ethanol as a viable source.
The substitute natural gas segment is expected to grow at the highest CAGR from 2025 to 2030. Substitute natural gas, also known as synthetic natural gas, is produced from coal and is suitable for transmission in natural gas pipelines. This gas is produced by thermochemical conversion in various stages, including gasification and water-gas shift reaction. Substitute natural gas production has increased substantially owing to restricted supply and volatility in prices of natural gas, which have led countries such as South Korea and China to construct substitute natural gas plants as an alternative. Furthermore, increasing frequency of research & development activities regarding the economic production of substitute natural gas to make it financially viable is expected to create notable growth avenues for the regional carbon dioxide market.
Food & beverage emerged as the leading application segment in the Asia Pacific carbon dioxide industry in 2024. The steadily growing regional population and high demand for processed food and beverage products have led to this industry's widespread usage of carbon dioxide. One of the most notable uses of CO₂ in this segment is for carbonating beverages, including soda, sparkling water, and energy drinks. The compound is dissolved in water or other liquids to create fizzy, effervescent bubbles that have become a defining characteristic of these beverages. Carbon dioxide also imparts preservative properties, making it a vital product in food packaging techniques, such as modified atmosphere packaging (MAP). By replacing the air inside a package with a gas mixture that includes carbon dioxide, food products such as meats, fruits, vegetables, and baked goods can stay fresh longer.
The medical segment is anticipated to grow at the fastest CAGR during the forecast period, as carbon dioxide plays a vital role in various medical procedures, diagnostic applications, and therapeutic uses. One of the primary medical uses is in laparoscopic surgeries, where CO₂ is used to insufflate the abdomen. During these procedures, the gas is introduced into the body cavity to create a working space for the surgeon. It helps lift the abdominal wall away from the organs, providing better visibility and easier access to the area being operated upon. Moreover, the compound is used in the ventilation of patients undergoing general anesthesia. Monitoring C02 levels in the exhaled breath is an important parameter for anesthesiologists to assess a patient's respiratory status during surgery. Continued research studies to understand other application areas are expected to maintain steady market expansion through this segment.
Asia accounted for a dominant revenue share of 93.2% in the regional market in 2024, aided by the fast pace of industrialization in economies such as India, China, Indonesia, and Singapore. The steady expansion of the middle-class population in Asian countries has generated a healthy demand for carbonated drinks and convenience foods, positively impacting the carbon dioxide market. Countries such as Indonesia, Thailand, and Vietnam have a rapidly expanding beverage sector, boosting the use of CO2 during production. Additionally, the product is extensively used in manufacturing chemicals and pharmaceuticals, as well as a refrigerant in cryogenic applications. Thailand and Singapore are notable countries that have driven market revenue through these segments.
China carbon dioxide market accounted for a dominant revenue share in the regional market in 2024, owing to the noticeable growth of major end-use verticals of carbon dioxide. Increasing greenhouse gas emissions and the growing demand for CO2 in a range of processes have enabled healthy industry expansion in the economy. Companies are focusing on developing innovative ways to reduce emissions and increase production to cater to this rising demand. The need for carbon dioxide in oil recovery, as well as in food & beverages, medical, and other applications, is anticipated to further augment its production in China. Methanol production is one of the largest industrial uses of CO2 in China, as it produces various chemicals and fuels. Urea production for fertilizers also requires CO2, with China being a leading global producer and consumer of fertilizers, which adds to the market demand.
The Pacific region, comprising Australia and other economies such as New Zealand, is expected to advance at the highest CAGR from 2025 to 2030. The increasing popularity of craft beer and soft drinks has created sustained demand for CO2 in Australia’s beverage industry. Moreover, the Australian government and industry players are investing heavily in carbon dioxide storage projects to meet carbon reduction targets. These projects are expected to increase CO2 demand as they scale up their operations. Australia is a global leader in CCS research, with significant projects such as Gorgon and CarbonNet aimed at large-scale CO2 capture and storage.
Similarly, New Zealand has also invested in CCS initiatives such as the Tauhara geothermal plant, which explores carbon management in renewable energy sectors. The country is investing in CO2 conversion technologies, including carbon-to-fuel processes that convert CO2 into valuable fuels or chemical products. This involves using carbon dioxide in the production of methanol or synthetic natural gas, which can be used as fuel in various sectors. Such developments are expected to ensure substantial expansion of the carbon dioxide industry in the coming years.
Some of the key companies involved in the Asia Pacific carbon dioxide industry include Air Liquide, Coregas, and Linde PLC, among others.
Air Liquide specializes in developing gases, technologies, and services for the industrial and healthcare sectors. The company sells a range of gases for applications such as heat treatment, welding and cutting, oxy-combustion, and wastewater treatment. It supplies carbon dioxide in liquid and gaseous forms as a pure gas or mixed with other gases. The LASAL range assists laser processes, while the ARCAL range provides gases for arc welding. Air Liquide operates in several major Asia and Pacific markets, including India, China, Malaysia, Singapore, and Australia.
Coregas is an Australia-based industrial gas company that distributes its products across Australia and New Zealand. The company manufactures cryogenic liquids and compressed gases and sells them to several major verticals, including heavy industries, manufacturing, healthcare, and specialty segments such as laboratories. Major gases provided include acetylene, carbon dioxide, argon, hydrogen, nitrogen, and oxygen. Coregas offers various grades of carbon dioxide (CO2) gas, including industrial-grade (CO2 2.5), laboratory-grade (CO2 4.5), food-grade, and aviation-grade, to a wide range of customers.
In December 2024, Wesfarmers Limited announced that it had entered into an agreement to sell 100% of its shares in its subsidiary Coregas Group to Nippon Sanso Holdings Corporation. This sale includes the subsidiary's Australia and New Zealand business divisions, including its welding portfolio. Nippon had earlier acquired the Supagas business in Australia in 2015, and the three businesses are expected to ensure improved services to regional customers.
Report Attribute |
Details |
Market size value in 2025 |
USD 3.36 billion |
Revenue forecast in 2030 |
USD 4.35 billion |
Growth Rate |
CAGR of 5.3% from 2025 to 2030 |
Base year for estimation |
2024 |
Historical data |
2018 - 2023 |
Forecast period |
2025 - 2030 |
Report updated |
December 2024 |
Quantitative units |
Revenue in USD million, volume in kilotons, and CAGR from 2025 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Source, application, region |
Regional scope |
Asia, Pacific |
Country scope |
Taiwan, China, Philippines, Vietnam, Thailand, Malaysia, Singapore, Indonesia, India, Australia |
Key companies profiled |
Air Liquide; Air Products and Chemicals, Inc.; Coregas; Cosmo Engineering Co.,Ltd.; Linde PLC; Messer SE & Co. KGaA; SS GASLAB ASIA PVT. LTD.; Sicgil india limited; XingLu Air Separation Plant; TAIYO NIPPON SANSO CORPORATION |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific carbon dioxide market report based on source, application, and region:
Source Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Hydrogen
Ethyl Alcohol
Ethylene Oxide
Substitute Natural Gas
Others
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Food & Beverage
Oil & Gas
Medical
Rubber
Fire Fighting
Metal Fabrication
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Asia
Taiwan
China
Philippines
Vietnam
Thailand
Malaysia
Singapore
Indonesia
India
Pacific
Australia
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."