Europe Carbon Dioxide (CO2) Market to Grow from USD 451.8 Million in 2025 to USD 905.5 Million by 2035 at a CAGR of 7.2%

Analysis of Europe Carbon Dioxide Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea

MD, UNITED STATES, September 17, 2025 /EINPresswire.com/ -- The Europe Carbon Dioxide (CO2) Market is projected to grow from USD 451.8 million in 2025 to USD 905.5 million by 2035. During the forecast period 2025 to 2035, the industry is projected to grow at a CAGR of 7.2%, driven by rising demand in food and beverage processing, enhanced oil recovery, and various industrial applications.

Europe Carbon Dioxide (CO2) Market Overview:

The market for carbon dioxide is segmented by derivative or form into gaseous, liquid, and solid (dry ice), with each catering to specific applications and growth drivers. While detailed breakdowns by form are not explicitly quantified, gaseous CO2 dominates due to its versatility in industrial and medical uses, liquid CO2 supports enhanced oil recovery and chemical synthesis, and solid dry ice is gaining traction in logistics and preservation.

Gaseous carbon dioxide is the most widely used form, essential for carbonation in beverages, medical procedures like laparoscopy, and as a shielding gas in welding. The push toward carbon capture and storage (CCS) technologies is accelerating its adoption, as industries seek to repurpose captured CO2 for sustainable applications. Regulatory pressures from the EU's emissions trading system are further boosting demand for high-purity gaseous CO2.

Liquid carbon dioxide is experiencing strong growth, particularly in the oil and gas sector for enhanced oil recovery (EOR) and in food processing for chilling and freezing. Its efficiency in supercritical applications, such as in chemical manufacturing for producing urea and methanol, aligns with Europe's focus on circular economy models. Investments in liquefaction infrastructure are supporting this segment's expansion amid volatile energy markets.

Europe Carbon Dioxide (CO2) End-User Industry Insights:

The end-user industries of carbon dioxide are diverse and span food and beverage, healthcare, oil and gas, chemicals, metal manufacturing, pulp and paper, and other industrial applications.

In the food and beverage sector, which holds the largest market share, carbon dioxide is indispensable for carbonation, chilling, packaging (via modified atmosphere), and preservation of processed foods and drinks. The surge in demand for ready-to-eat meals, craft beverages, and sustainable packaging in Europe is propelling this segment, with seasonal peaks during summer and investments in onsite CO2 recovery systems ensuring supply reliability.

The healthcare industry represents a high-growth area, where medical-grade CO2 is used in minimally invasive surgeries, respiratory diagnostics, and cryotherapy. Europe's aging population and expanding healthcare infrastructure, including advanced hospitals in Germany and France, are driving adoption. Strict purity standards under EU regulations further emphasize the need for reliable, high-quality supplies.

Oil and gas applications focus on EOR to extend the life of mature fields, while the chemicals sector utilizes CO2 as a feedstock for sustainable products like biofuels and polymers. In metal manufacturing and pulp and paper, CO2 aids in processes like blasting and pH control.

Europe Carbon Dioxide (CO2) Regional Analysis:

Growth patterns vary across European countries, with Western and Central Europe leading due to advanced industrial bases and policy support. Germany is the largest market, projected to grow at a CAGR of 7.0% through 2035, driven by strong demand in food, chemicals, and CCS projects like those integrating with the Porthos network. The country's decarbonization efforts and robust industrial gas sector position it as a key hub.

France follows with a CAGR of 6.3%, fueled by agri-food processing, healthcare expansions, and circular economy models, including CO2 use in greenhouses and wine production. Italy is expected to see the highest regional growth at 7.3% CAGR, anchored in beverage carbonation, dry ice for exports, and emerging CCS initiatives. The UK and Netherlands are hotspots for innovation, with projects like the East Coast Cluster and Porthos enhancing CO2 utilization and storage.

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Europe Carbon Dioxide (CO2) Recent Developments and Competitive Landscape:

The Europe carbon dioxide market is highly competitive, with leading industrial gas providers and innovators focusing on CCS, sustainability, and supply chain resilience to capture market share. Major companies active in this space include Air Liquide S.A., The Linde Group, The Messer Group GmbH, SOL Spa, Strandmøllen, ACAIL Gas, AKER Carbon Capture, Climeworks, Northern Lights JV DA, and Eni S.p.A.

Recent developments underscore the shift toward carbon capture and green technologies. In 2025, Air Liquide expanded its carbon capture capabilities at the Rotterdam hydrogen site, aiming to capture up to 800,000 tons of CO2 annually for the Porthos CCS project, enhancing supply for industrial users. Linde entered a long-term agreement with OCI Global for CO2 capture at a blue ammonia plant in the Netherlands, integrating with national CCS networks to support clean energy transitions.

For more on their methodology and market coverage, visit: Outlook and Key Takeaways:

The Europe carbon dioxide market is expected to expand significantly, reaching USD 905.5 million by 2035 from USD 451.8 million in 2025, at a CAGR of 7.2 percent. Food and beverage applications will continue to dominate, alongside growth in healthcare and CCS-driven industrial uses, propelled by EU climate policies.

Looking ahead, companies prioritizing CCS investments, regulatory compliance, and innovative delivery modes will secure advantages. Expanding CCS networks, advancing capture technologies, and addressing supply volatility will be essential strategies for thriving in this dynamic, sustainability-focused market.

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