Liquid Carbon Dioxide Market Report 2025

The liquid carbon dioxide market size has grown strongly in recent years. It will grow from $6.1 billion in 2024 to $6.54 billion in 2025 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to growing demand from the healthcare sector, increasing need for dry ice production, rising environmental focus on co₂ recycling and utilization, increasing demand from the chemical processing industry, and rising use in welding and metal fabrication.

The liquid carbon dioxide market size is expected to see strong growth in the next few years. It will grow to $8.63 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. This forecasted expansion is driven by the rising demand for carbonated beverages, wider adoption in food freezing and chilling processes, increasing use in fire suppression systems, and growing applications in greenhouses to stimulate plant growth. Key trends during the forecast period include advancements in CO₂ capture and liquefaction technologies, integration of CO₂-based refrigeration systems in industries, technological improvements in dry ice manufacturing equipment, adoption of supercritical CO₂ extraction techniques, and innovations in cryogenic storage and transportation solutions.

Increasing global population and export growth are boosting demand for food and beverages, thereby fueling market expansion. Food and beverages encompass consumable solid and liquid products for human intake, from raw ingredients to processed meals and drinks. The rising global population intensifies the need for nourishment and various food products. Liquid carbon dioxide supports food and beverage production by offering a clean and effective method for carbonation and preservation. It enhances product quality and extends shelf life while promoting sustainable and safe manufacturing practices. For example, in October 2023, Agriculture and Agri-Food Canada reported that processed food and beverage exports reached $54.3 billion in 2022, reflecting a 14.1% increase from 2021. Consequently, this growing demand in the food and beverage sector is driving the liquid carbon dioxide market forward.

Leading companies in the liquid carbon dioxide market are investing in innovative solutions like liquid carbon dioxide carriers to enhance storage and transportation efficiency, minimize energy losses, and ensure CO₂ stability over long-distance shipments. A liquid carbon dioxide (CO₂) carrier is a specialized container or vessel designed to transport CO₂ in liquid form under tightly controlled temperature and pressure conditions. For instance, in April 2025, South Korean shipbuilder Hyundai Mipo Dockyard Co. Ltd. introduced a liquefied carbon dioxide carrier that efficiently moves captured CO₂ across long distances for storage or utilization purposes, supporting global carbon capture and decarbonization efforts. These carriers’ large capacity reduces transportation costs and provides a flexible, cost-effective alternative to pipelines, especially for distances exceeding 300 km.

In January 2025, Alto Ingredients Inc., a chemical company based in the US, acquired Kodiak Carbonic LLC for an undisclosed sum. With this acquisition, Alto Ingredients aims to optimize the use of byproduct CO₂, increase operational efficiency and profit margins, secure sustainable revenue streams, and enhance the overall value and growth potential of its Columbia facility. Kodiak Carbonic LLC is a US-based firm that specializes in processing beverage-grade liquid carbon dioxide.

Major players in the liquid carbon dioxide market are Linde plc, Air Liquide Deutschland GmbH, Air Products and Chemicals Inc., Messer Group GmbH, BOSCO India, Westfalen AG, SOL Group, Matheson Tri-Gas Inc., Gulf Cryo Holding, Continental Carbonic Products Inc., Praxair Inc, INOX Air Products Private Limited, BOC Ltd., Goyal MG Gases Pvt. Ltd., SICGIL Industrial Gases Limited, Southern Industrial Gas Sdn Bhd, Coregas Pty Ltd., Axcel Industrial Gases Pvt. Ltd., Bathinda Industrial Gases Pvt. Ltd., UIG Universal Cryo Gas LLC, Sri Venkateswara Carbonic Gases Private Limited, Iwatani Corporation.

North America was the largest region in the liquid carbon dioxide market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in liquid carbon dioxide report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the liquid carbon dioxide market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Liquid carbon dioxide is the compressed and cooled form of carbon dioxide gas, kept under high pressure and low temperature conditions. It is a colorless and odorless liquid primarily utilized as a solvent, refrigerant, and in fire suppression systems. This substance facilitates efficient cooling, cleaning, and extraction operations in industrial, food, and environmental sectors.

The production of liquid carbon dioxide mainly stems from two sources: natural and synthetic. The natural source involves obtaining liquid carbon dioxide (LCO₂) from naturally occurring CO₂ reservoirs, such as underground geological formations. Liquid CO₂ is available in multiple purity grades, including industrial, food, and pharmaceutical grades, and is distributed through various channels like direct sales, distributors, online platforms, and retail outlets. Its key applications cover the food and beverage sector, oil and gas industry, medical and healthcare fields, chemical manufacturing, and metallurgical processes. The end-users include industries such as manufacturing, food processing, healthcare, agriculture, and research and development.

The liquid carbon dioxide market research report is one of a series of new reports that provides liquid carbon dioxide market statistics, including the liquid carbon dioxide industry's global market size, regional shares, competitors with the liquid carbon dioxide market share, detailed liquid carbon dioxide market segments, market trends and opportunities, and any further data you may need to thrive in the liquid carbon dioxide market. This liquid carbon dioxide market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The liquid carbon dioxide market consists of sales of supercritical liquid carbon dioxide, carbonated beverages carbon dioxide grade, welding-grade carbon dioxide, and cryogenic liquid carbon dioxide. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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