Bio- Carbon Dioxide (CO2) Utilization Global Market Report 2025

The bio- carbon dioxide (CO2) utilization market size has grown rapidly in recent years. It will grow from $1.45 billion in 2024 to $1.66 billion in 2025 at a compound annual growth rate (CAGR) of 13.9%. Growth in the historic period can be attributed to a heightened focus on reducing industrial greenhouse gas emissions, rising adoption of circular economy policies across manufacturing sectors, increased emphasis on sustainable feedstocks in chemical production, a surge in carbon-intensive industries seeking emission-offset pathways, expansion of government incentives supporting low-carbon initiatives, and growing corporate sustainability commitments and net-zero targets.

The bio- carbon dioxide (CO2) utilization market size is expected to see rapid growth in the next few years. It will grow to $2.75 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. Growth in the forecast period can be linked to increasing demand for low-carbon materials in construction and packaging, rising investment in large-scale carbon capture pipelines and transportation networks, growing preference for green fuels in aviation and shipping, a surge in regulatory mandates promoting carbon utilization over geological storage, expansion of carbon pricing mechanisms and emissions-trading systems, and increased public and investor pressure for climate-positive industrial operations. Major trends expected during the forecast period include advancements in bio-based conversion of captured carbon into fuels and chemicals, improvements in microbial and enzymatic pathways to boost carbon utilization efficiency, innovations in integrated biorefineries that generate multiple high-value products from carbon streams, development of decentralized carbon utilization units for industrial facilities, research into converting captured carbon into biodegradable polymers, and progress in carbon-to-protein platforms for sustainable food and feed production.

The increasing adoption of bio-based products is expected to drive growth in the bio-carbon dioxide (CO₂) utilization market in the coming years. Bio-based products are derived from renewable biological sources such as plants, algae, and microorganisms, rather than fossil-based feedstocks. Adoption of these products is rising due to stricter environmental regulations and sustainability mandates, which encourage manufacturers to replace fossil-based materials with lower-carbon, renewable alternatives. Bio-carbon dioxide utilization enables the transformation of captured CO₂ from industrial or biological sources into valuable feedstocks, supporting the production of sustainable biofuels, bioplastics, and biochemicals while simultaneously reducing greenhouse gas emissions. For instance, in December 2023, the European Bioplastics Association projected that global bioplastics production capacity would increase from approximately 2.18 million tonnes in 2023 to nearly 7.43 million tonnes by 2028, reflecting the growing demand for renewable materials. Consequently, rising adoption of bio-based products is fueling the bio-CO₂ utilization market.

Key companies in the market are advancing technologies such as biocatalytic gas-fermentation to improve CO₂ conversion efficiency and expand the production of low-carbon, value-added chemicals. Biocatalytic gas-fermentation uses specially selected or engineered microorganisms to convert CO₂ and hydrogen into commercial compounds through biological catalysis. This process enables continuous carbon conversion, modular deployment, and integration with industrial CO₂ sources. For example, in November 2023, Again, a Denmark-based carbon-to-chemicals biomanufacturing startup, launched its first CO₂ utilization plant in Copenhagen. The facility employs biocatalytic gas-fermentation to transform industrial waste CO₂ streams into carbon-negative chemicals such as acetate and acetic acid. The plant’s modular bioreactors and direct gas feed system support industrial decarbonization while producing materials for textiles, packaging, and consumer goods.

In February 2024, CycleØ Group Limited, a UK-based provider of renewable gas solutions, acquired Biogasclean A/S to strengthen its bio-CO₂ utilization capabilities. The acquisition provides CycleØ access to Biogasclean’s proprietary biological methanation and biogas purification technologies, enabling enhanced CO₂ capture and conversion. This allows CycleØ to produce fully circular green gas by converting biogenic CO₂ into e-methane. Biogasclean, based in Denmark, specializes in upgrading biogas streams and transforming CO₂ into renewable methane using microbial processes, further supporting industrial decarbonization and the circular economy.

Major players in the bio- carbon dioxide (co2) utilization market are Hitachi Zosen Corporation+Y314:Z325, LanzaTech Global Inc., Newlight Technologies LLC., Air Protein Inc., Algenol Biotech LLC., String Bio Private Limited., Cemvita Factory Inc., Electrochaea GmbH., Buggypower Biotech S.A., Solar Foods Oy., NovoNutrients Inc., Phytonix Corporation., Pond Technologies Inc., Global Algae Innovations Inc., Seambiotic Ltd., Photanol BV., Kiverdi Inc., Aerbio, Arkeon Biotechnologies GmbH., MBD Energy Limited.

Europe was the largest region in the bio- carbon dioxide (CO2) utilization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in bio- carbon dioxide (CO2) utilization report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the bio- carbon dioxide (CO2) utilization 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 intensifying U.S. tariffs and escalating trade tensions in spring 2025 are expected to have a significant impact on the chemicals sector, which is bearing a disproportionate burden, particularly from tariffs on petrochemicals and intermediates, where affordable domestic substitutes are often unavailable. Producers of specialty chemicals, heavily dependent on Chinese raw materials, are experiencing production disruptions. At the same time, fertilizer manufacturers are seeing profit margins eroded due to tariffs on phosphate imports. In response, companies are ramping up R&D into bio-based alternatives, forming procurement alliances to consolidate buying power, and shifting production to tariff-neutral nations such as Saudi Arabia.

The bio-carbon dioxide (CO₂) utilization market research report is one of a series of new reports that provides bio-carbon dioxide (CO₂) utilization market statistics, including the bio-carbon dioxide (CO₂) utilization industry global market size, regional shares, competitors with the bio-carbon dioxide (CO₂) utilization market share, detailed bio-carbon dioxide (CO₂) utilization market segments, market trends, and opportunities, and any further data you may need to thrive in the bio-carbon dioxide (CO₂) utilization industry. This bio-carbon dioxide (CO₂) utilization 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.

Bio-carbon dioxide (CO₂) utilization refers to the use of living organisms or biological systems to capture and convert CO₂ into valuable products. This process typically employs microalgae, bacteria, or enzymes that absorb CO₂ and transform it into materials such as biofuels, proteins, fertilizers, or bioplastics through natural or engineered metabolic pathways. It is significant because it helps lower greenhouse gas levels while producing sustainable, low-carbon alternatives to fossil-based products.

The main technologies used in bio-carbon dioxide (CO₂) utilization include biological conversion, chemical conversion, and physical conversion. Biological conversion is a method that utilizes microorganisms or enzymes to convert carbon dioxide into useful outputs such as biofuels, chemicals, or biomass. Key applications include biofuels, bioplastics, chemicals, food and beverages, and others, and these technologies are adopted by various end users such as industrial, agricultural, energy, and other sectors.

The bio- carbon dioxide (CO2) utilization market consists of revenues earned by entities by providing services such as carbon capture services, engineering and design services, project development services, technology integration services, monitoring and verification services, and carbon credit management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The bio- carbon dioxide (CO2) utilization market also includes sales of proteins, animal feed ingredients, fertilizers, synthetic methane, building materials, and specialty polymers. 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 that 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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