Carbon Dioxide Market (2025 - 2033) Size, Share & Trends Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas ), By Application (Food & Beverage, Oil & Gas, Medical), By Region, And Segment Forecasts

Carbon Dioxide Market Summary

The global carbon dioxide market size was estimated at USD 11,798.6 million in 2024 and is projected to reach USD 19,997.6 million by 2033, growing at a CAGR of 6.0% from 2025 to 2033. The increasing application of carbon dioxide (CO2) in enhanced oil recovery (EOR) is primarily driven by depleting oil reserves and a heavy reliance on crude oil imports, especially in Asia.

Declining oil reserves and a heavy reliance on crude oil imports, particularly in the Asia Pacific region, have fueled the adoption of EOR methods to maximize extraction efficiency. Rising global demand for crude oil and natural gas is further widening the supply-demand gap, making EOR more critical. In addition, supportive government policies, infrastructure development initiatives, and financial incentives in countries like India, China, Indonesia, and Malaysia are encouraging foreign investment and advancing the use of CO₂ in EOR applications in the oil & gas industry.

The carbon dioxide industry is expected to grow significantly due to its increasing adoption in enhanced oil recovery (EOR) technologies, particularly gas injection methods. Key drivers include fluctuating crude oil prices, a rising number of mature oil wells, and the growing need to extract hydrocarbons from unconventional reserves like tight sands and carbonate formations.

Technological advancements in CO₂-based EOR, including innovations that capture and reuse CO₂ from production processes, enhance recovery rates while reducing environmental impact. This dual benefit, higher oil output and lower emissions, makes CO₂-EOR an attractive solution. In addition, government-backed initiatives in Asia Pacific and Latin America, along with favorable tax regimes, are accelerating foreign investments and infrastructure development. While North America currently leads due to its established unconventional energy sector, high-growth markets like Asia Pacific, Central & South America, and the Middle East are poised to gain a larger share due to rapid industrialization and policy support.

The use of CO2 in the medical field is becoming increasingly important worldwide. CO2 gas is primarily employed as an insufflation agent in various surgical procedures, including arthroscopy, endoscopy, and laparoscopy. It helps inflate and stabilize cavities within the human body, improving the visibility of the surgical area. In addition, CO2 is utilized during surgeries to enhance blood flow to the brain and assist with respiration. For medical applications, CO2 is supplied with specially designed chromium-plated steel cylinders equipped with valves.

The harmful effects of carbon emissions in the atmosphere are significant contributors to global climate change. While countries worldwide have invested heavily in reducing carbon pollution by introducing innovations in Carbon Capture and Storage (CCS) technology and implementing carbon pricing in some areas, many nations still need to achieve their climate goals.

Carbon capture, utilization, and storage (CCUS) is a technology designed to lower emissions from various industries, including steel production, power generation, refining, iron production, cement manufacturing, and petrochemicals. Carbon sequestration technologies encompass capturing, transporting, storing, and utilizing carbon emissions.

Carbon emissions in the atmosphere are among the major causes of global climate change. Although countries around the world have invested heavily in efforts to curb carbon pollution by introducing innovations in CCS technology and implementing carbon taxes in some considered, most of the countries still stand at a serious phase of not achieving the targeted climate goals. Various governments have taken subsequent steps to reduce carbon emissions from the power sector and are making continuous efforts to curb the greenhouse gas emissions from power plants. The provision of the cap-and-trade system, which puts a price on carbon emissions, is stimulating the CCS installations across several industries, such as power generation, chemical processing, oil & gas, iron & steel, and others.

Despite its negative impact on climate change, carbon dioxide can also be utilized in several ways, including as a feedstock for various industrial processes and as a potential fuel source. One approach to understanding these opportunities is to examine the existing research on carbon capture and utilization technologies. Carbon capture technologies have the potential to significantly reduce emissions from industrial processes such as power generation and cement production. In contrast, utilization technologies can transform captured carbon into valuable Sources such as building materials, chemicals, and fuels.

Market Concentration & Characteristics

The carbon dioxide industry is moderately fragmented, with dominance by a few large, vertically integrated industrial gas and chemical producers. These leading companies leverage economies of scale, in-house CO₂ sourcing from natural gas processing, ammonia plants, and fermentation processes, as well as extensive global distribution networks to maintain strong competitive positions. Their integration across the CO₂ value chain, from capture and purification to liquefaction and distribution, ensures cost efficiency, consistent Source quality, and reliable supply to key end-use sectors such as food and beverage, healthcare, Rubber, welding, and metal fabrication, and enhanced oil recovery.

At the same time, emerging players in the Asia-Pacific and Middle East regions are expanding their market share in the carbon dioxide industry by capitalizing on abundant natural gas reserves, cost-effective industrial infrastructure, and rising domestic demand across key sectors. These regional producers, supported by strategic investments in CO₂ capture, purification, and liquefaction facilities within industrial clusters, are targeting price-sensitive markets and high-volume applications such as food processing, beverage carbonation, metal fabrication, and Rubber. This evolving dynamic, marked by global consolidation among established industrial gas giants and regional growth fueled by feedstock and energy cost advantages, continues to reshape the competitive landscape of the carbon dioxide industry.

However, the carbon dioxide industry faces several challenges, with one major restraint being the increasing environmental and regulatory scrutiny over CO₂ emissions and its role as a greenhouse gas. Although much of the market utilizes captured CO₂ from industrial processes, concerns over lifecycle emissions, carbon intensity, and climate change impact have led to stricter regulatory frameworks, particularly in Europe and North America. These evolving regulations are pushing producers to invest in low-carbon capture technologies and to demonstrate carbon neutrality or net-negative emissions, especially for applications in food-grade CO₂ and enhanced oil recovery (EOR).

Source Insights

The ethyl alcohol compounds segment led the market with the largest revenue share of 33.5% in 2024 and is expected to continue to grow at the fastest CAGR over the forecast period. This is attributed to the easy availability of carbon dioxide (CO2) as a long-term and reliable source. Furthermore, the increasing global demand for food-grade CO2 will drive its production from ethyl alcohol in the coming years. Carbon dioxide is produced as a byproduct during the fermentation of ethyl alcohol. In addition, the combustion of ethanol also generates CO2 and water vapor. The CO2 obtained from these processes is mainly used in food and beverage applications, such as chilling, carbonation, freezing, and cooling.

The substitute natural gas segment is expected to grow at a significant CAGR from during the forecast period, due to limited availability and price volatility of conventional natural gas, prompting countries, especially in North America and Europe, to explore alternative sources to ensure energy security and supply stability. SNG, produced from coal through thermochemical processes like gasification and the water-gas shift reaction, offers a reliable substitute that is compatible with existing natural gas infrastructure, including pipelines and storage systems. In addition, the increasing demand for natural gas across sectors such as power generation, transportation, residential heating, and industrial applications is pushing the development of scalable and sustainable alternatives. SNG also provides an opportunity for carbon dioxide capture during the conversion process, aligning with decarbonization goals.

Carbon dioxide is produced as a by-product in the hydrogen source ion process. Several methods produce enhanced hydrogen, including biological, thermochemical, and electrolytic processes. Carbon dioxide is also generated from various sources and utilized in multiple applications. During the forecast period, ongoing research and development efforts to efficiently generate CO2 from diverse sources are expected to drive market growth. Factors such as supply and demand, sourcing costs, emission regulations, transportation, and competition all influence carbon dioxide prices. When many suppliers offer carbon dioxide for specific applications, prices may decrease due to increased competition.

Application Insights

Based on application, the food & beverage segment led the market with the largest revenue share of 41.3% in 2024, due to its growing use in cryogenic freezing. This method provides greater flexibility in temperature control compared to mechanical refrigeration. Cryogenic cooling and freezing using CO2 is often favored for bakery, confectionery, meat, and seafood Sources, as it enhances capacity, preserves aromas and nutrients more effectively, and maintains the food's natural taste, color, and overall quality. CO2 is commonly used in modified atmosphere packaging (MAP) to extend the shelf life of food. Sources. This packaging method creates a controlled environment for various foods, including meat, fruits, salads, and certain bakery items, helping to prevent spoilage and maintain freshness. In addition, CO2 is employed in controlled atmosphere storage (CAS) to manage insects and pests in long-term storage facilities.

The medical segment is expected to grow at the fastest CAGR of 6.6% from 2025 to 2033. Carbon dioxide plays a vital role in the medical field, used both in pure form and in specialized gas mixtures for applications such as anesthesia, respiratory stimulation, and minimally invasive surgeries like laparoscopy and endoscopy. It also supports cryotherapy and cryopreservation by achieving extremely low temperatures necessary for tissue and sample storage. The use of CO₂ in medical gas mixtures like carbogen aids in treating chronic respiratory conditions. Growing demand from advanced healthcare systems in developed nations, along with the expansion of medical infrastructure in emerging economies, is driving the market.

Regional Insights

North America dominated the carbon dioxide market with the largest revenue share of 42.0% in 2024, driven by the expanding industrial sector and rising demand from the oil & gas industry, particularly for enhanced oil recovery (EOR) applications. The U.S. is seeing a surge in CO₂-EOR projects, supported by favorable policies like the FUTURE Act, which promotes carbon capture and utilization from power plants and industrial sources. In addition, innovative technologies, such as those by CarbonCure in Canada, are using captured CO₂ in sustainable construction materials, further expanding market applications. The food & beverage industry also contributes to demand with its use of CO₂ in preservation and carbonation. These diverse applications and supportive legislative frameworks are expected to propel CO₂ market growth in the region.

U.S. Carbon Dioxide Market Trends

U.S. held over 75.2% revenue share of the North America carbon dioxide market. The carbon dioxide market in the U.S. is poised for significant growth, driven by rapid industrialization and expanding oil & gas activities, particularly in enhanced oil recovery (EOR). CO₂ is widely used in EOR operations to reduce oil viscosity and improve extraction efficiency through CO₂ flooding techniques. The market is further supported by government initiatives like the FUTURE Act, which promotes carbon capture from power and industrial sources for use in oil recovery. In addition, the growing medical sector, fueled by an aging population and rising health concerns, is boosting demand for medical-grade CO₂ in applications such as insufflation during minimally invasive surgeries and respiratory therapies.

Asia Pacific Carbon Dioxide Market Trends

The carbon dioxide market in Asia Pacific is witnessing significant growth, driven by increasing industrialization, urbanization, and a strong push toward environmental sustainability. Countries like China, India, Japan, and South Korea are among the world’s largest emitters of greenhouse gases due to their heavy reliance on coal, oil, and gas for energy production and manufacturing. As a result, there is a rising demand for carbon trading mechanisms to help reduce emissions cost-effectively. Governments in the region are implementing carbon pricing policies, such as China’s national Emissions Trading System (ETS), the largest of its kind, launched in 2021. Additionally, the region is home to many large corporations seeking to meet net-zero targets, driving interest in voluntary carbon credits. The Asia Pacific's vulnerability to climate change impacts like rising sea levels and extreme weather also intensifies pressure for climate action, making carbon markets a crucial tool in transitioning toward low-carbon economies across the region.

The China carbon dioxide market accounted for the largest market revenue share in Asia Pacific in 2024, driven by rising demand across oil recovery, food & beverage, medical, and industrial sectors. The country’s focus on reducing greenhouse gas emissions has spurred investments in large-scale CO₂ capture projects, such as Sinopec’s EOR-based plant, expected to inject over 10 million tons of CO₂ over 15 years. China's position as a leading soft drink producer and food exporter fuels strong demand for food-grade CO₂, intensifying market competition. Strategic moves like Guanggang Gas’s acquisition of Linde Wuhu’s CO₂ plant reflect growing capacity expansion. In addition, industrial growth is boosting CO₂ usage in fire suppression systems to meet safety regulations.

Europe Carbon Dioxide Market Trends

The carbon dioxide market in Europe accounted for the third largest revenue share of 11.9% in 2024, driven by the region being the third largest carbon dioxide industry globally, with the UK leading regional demand, followed by Germany, France, Spain, and Italy. The food & beverage sector is the primary consumer, particularly in beer, and food preservation applications such as packaging salads and meat. Carbon dioxide is also widely used in medical procedures like laparoscopy and enhanced oil recovery. The UK's strong food and drink industry, generating over USD 140 billion annually, significantly drives CO₂ demand. In addition,

The Germany carbon dioxide market is anticipated to grow at the fastest CAGR during the forecast period. The Germany is a key contributor to Europe’s market, driven by high CO₂ usage in beer Sourceion supported by the country's large beer consumption. At the same time, Germany is actively investing in research to reduce carbon emissions and explore new industrial applications for CO₂, aligning with its shift toward renewable energy and sustainability goals.

Middle East & Africa Carbon Dioxide Market Trends

The carbon dioxide market in the Middle East & Africa is experiencing strong growth, driven by rising oil & gas exploration activities and the increasing adoption of Enhanced Oil Recovery (EOR) and Improved Oil Recovery (IOR) technologies. The demand for CO₂ in refrigeration and cooling is also rising due to the growing consumption of packaged and frozen food, fueled by harsh climatic conditions and limited agricultural land. In addition, expanding healthcare infrastructure and increasing awareness are boosting the use of CO₂ in medical applications. While rising health concerns like obesity may slightly restrain the packaged food segment, growing consumption of carbonated beverages, especially in GCC countries, continues to drive CO₂ demand. Saudi Arabia is witnessing EOR demonstration projects and refinery expansions, further supporting long-term market growth.

Latin America Carbon Dioxide Market Trends

The carbon dioxide market in Latin America is witnessing steady growth, largely driven by the expansion of the oil & gas sector supported by rising foreign and government investments. The region’s healthcare industry, particularly in Brazil and Argentina, is boosting demand for medical-grade CO₂ in applications like respiratory therapy and minimally invasive surgeries. CO₂ is also widely used in beer production, and with Brazil ranking as the third-largest beer producer globally, the growing number of microbreweries is expected to support market growth. In addition, countries like Brazil and Colombia, known for their rubber, are fueling demand for dry ice, a solid form of CO₂, used in industrial cleaning via dry ice blasting technology.

Key Carbon Dioxide Company Insights

Some of the key players operating in the carbon dioxide industry include Evonik and Kao Corporation.

• Evonik, headquartered in Essen, Germany, is a leading global chemical company and a dominant, mature player in the carbon dioxide industry. With decades of amine and surface chemistry expertise, Evonik offers an extensive portfolio of Carbon Dioxide and its derivatives, including primary, Ethyl Alcohol, and Ethylene Oxide amines tailored for a wide range of industrial and specialty applications. Evonik’s Carbon Dioxide delivers essential performance attributes such as emulsification, hydrophobicity, anti-static behavior, surface activity, and corrosion inhibition, making them indispensable in end-use industries like agriculture as adjuvants, personal and home care as conditioning agents, oil & gas as corrosion inhibitors, textiles, and Rubber. Backed by vertically integrated Sourceion and global manufacturing sites, Evonik ensures consistent quality, robust supply chains, and regional responsiveness. Its advanced R&D centers, particularly in Germany, the U.S., and Asia, focus on green chemistry, sustainable synthesis methods, and performance optimization tailored to customer-specific needs. Evonik also leads the development of eco-friendly fatty amine solutions, including biogenic and low-VOC formulations.

KLK OLEO and Indo Amines Limited are emerging market participants in the carbon dioxide industry.

• KLK OLEO, headquartered in Malaysia, is an emerging and dynamic player in the global market, steadily expanding its presence across key regions such as Asia-Pacific, Europe, and the Americas. Traditionally recognized for its strength in oleochemicals, KLK OLEO is increasingly integrating advanced fatty amine technologies into its Source portfolio to address the growing demand for high-performance, sustainable, and biodegradable surfactants. Its Carbon Dioxide is used extensively in personal care, home care, agriculture, Oil & Gas, and Rubber applications. Through strategic investments, vertical integration, and technology collaborations, KLK OLEO is enhancing its capability to deliver consistent quality, regulatory-compliant, and customized fatty amine solutions tailored to global customer needs. The company emphasizes sustainability, leveraging renewable feedstocks and green chemistry principles to support environmentally responsible sourcing. In addition, KLK OLEO offers comprehensive value-added services such as technical consultation, application development, and supply chain reliability, positioning itself as a trusted and agile partner in the evolving global carbon dioxide industry.

Recent Developments

• In April 2025, Air Liquide is actively contributing to the market growth through its involvement in the Porthos CO₂ Transportation and Storage Project in Rotterdam, Europe's largest industrial port. As one of the key industrial partners, Air Liquide is implementing its CRYOCAP carbon capture technology at its hydrogen plant in Rozenburg to reduce CO₂ emissions by 50%. The investment in public-private Porthos initiative will capture, transport, and store up to 2.5 million tonnes of CO₂ annually, expandable to 10 million tonnes, in depleted gas fields beneath the North Sea. This marks the first time CO₂ will be stored in such a reservoir in Europe. By leveraging its expertise in carbon capture and storage (CCS), Air Liquide is helping decarbonize hard-to-abate industries and supporting the region’s transition to low-carbon industrial operations, aligning with the EU’s goal of carbon neutrality by 2050.

• In April 2023, Linde has signed a long-term agreement with ExxonMobil for the off-take and permanent storage of up to 2.2 million metric tons of CO₂ annually from its upcoming clean hydrogen Sourceion facility in Beaumont, Texas, set to start operations in 2025. This CO₂ capture supports Linde’s supply of low-carbon hydrogen to OCI Global's blue ammonia plant and other industrial users across the U.S. Gulf Coast. The deal highlights growing momentum in carbon capture and storage (CCS), with ExxonMobil acting as the storage provider. This collaboration significantly contributes to decarbonizing industrial operations, marking a notable development in the carbon dioxide industry as CCS becomes a central tool in emission reduction strategies. 

Carbon Dioxide Market Report Scope

Global Carbon Dioxide Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global carbon dioxide market report based on source, application, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substitute Natural Gas

  • Other Sources

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • Fruit & Vegetables

  • Oil & Gas

  • Medical

  • Rubber

  • Firefighting

  • Other Applications

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033) 

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa