Industrial Carbon Dioxide Global Market Report 2025

The industrial carbon dioxide market size has grown strongly in recent years. It will grow from $5.25 billion in 2024 to $5.6 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth observed in the historic period can be attributed to several factors, including the increasing use of CO₂ in chemical production, higher demand from the beverage carbonation sector, growing adoption in metal fabrication processes, expanded use of CO₂ in refrigeration and cooling, and greater availability of CO₂ from industrial by-products.

The industrial carbon dioxide market size is expected to see strong growth in the next few years. It will grow to $7.16 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth during the forecast period is driven by several factors, such as the rising demand for enhanced oil recovery, increased use of CO₂ in the food and beverage industry, growing adoption of carbon capture and storage technologies, expanding industrialization and manufacturing activities, and stricter environmental regulations on greenhouse gas emissions. Key trends shaping the market during this period include advancements in carbon capture technologies, the development of cost-effective CO₂ utilization methods, innovation in direct air capture systems, progress in industrial emission monitoring solutions, and the creation of sustainable CO₂ storage infrastructure.

The increasing demand for packaged foods is expected to drive the growth of the industrial carbon dioxide market in the coming years. Packaged foods refer to processed or prepared food products that are sealed in packaging for convenience, preservation, and easy distribution. This demand is rising due to busy lifestyles, with consumers opting for convenient, ready-to-eat, or easy-to-cook food options that save time. Industrial carbon dioxide plays a key role in packaged foods by preserving freshness and extending shelf life. It is used in carbonation, modified atmosphere packaging (MAP), and refrigeration to prevent spoilage and maintain product quality. For example, in July 2025, Agriculture and Agri-Food Canada (AAFC) reported that in 2024, exports of processed food and beverage products from Canada reached $59.8 billion, marking a 3.8% increase compared to 2023. As a result, the growing demand for packaged foods is contributing to the growth of the industrial carbon dioxide market.

Major companies in the industrial carbon dioxide market are focusing on developing sustainable CO₂ production plants to meet rising industrial demand while reducing environmental impact. A sustainable CO₂ production plant captures or generates carbon dioxide using eco-friendly methods, minimizing emissions and energy consumption. These plants often incorporate carbon capture technologies, renewable energy, or circular economy practices to reduce their carbon footprint. For instance, in December 2024, Messer Group, a Germany-based industrial gases company, began operations at its new green CO₂ facility in Vrdy, Czech Republic. This plant produces green CO₂ sourced from a local bioethanol producer, helping Messer achieve its ESG (Environmental, Social, and Governance) goals by reducing reliance on fossil or chemical sources. The facility also enhances supply reliability for local industries, particularly in food and beverage sectors, by enabling Messer to deliver CO₂ independently without relying on imports, while simultaneously lowering greenhouse gas emissions through reduced transportation distances.

In January 2025, Alto Ingredients, Inc., a US-based producer and distributor of specialty alcohols, acquired Kodiak Carbonic, LLC, for an undisclosed amount. This acquisition allows Alto Ingredients to secure long-term CO₂ sales contracts, boosting profitability, de-risking future cash flows, expanding its premium ingredients portfolio, and enhancing the economics and asset value of its Columbia facility. Kodiak Carbonic, LLC operates a beverage-grade liquid CO₂ processing plant, contributing to Alto Ingredients' industrial carbon dioxide operations.

Major companies operating in the industrial carbon dioxide market are BASF SE, Linde plc, Air Liquide S.A., Air Products and Chemicals Inc., Taiyo Nippon Sanso Corporation, Air Water Inc., Messer Group GmbH, SOL S.p.A., Westfalen AG, Matheson Tri-Gas Inc., Gulf Cryo Holding Company, India Glycols Limited, Continental Carbonic Products Inc., LanzaTech Inc., Toshiba Energy Systems & Solutions Corporation, Suzhou Jinhong Gas Co. Ltd., Coregas Pty Ltd, Buzwair Industrial Gases Factories Co. LLC, Iwatani corporation, SIAD Group

North America was the largest region in the industrial carbon dioxide market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in industrial carbon dioxide report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the industrial 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 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 industrial carbon dioxide market research report is one of a series of new reports that provides industrial carbon dioxide market statistics, including industrial carbon dioxide industry global market size, regional shares, competitors with an industrial carbon dioxide market share, detailed industrial carbon dioxide market segments, market trends and opportunities, and any further data you may need to thrive in the industrial carbon dioxide industry. This industrial carbon dioxide market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Industrial carbon dioxide (CO₂) is a commercially produced gas used to facilitate chemical reactions, improve process efficiency, and maintain controlled conditions in industrial operations. It supports temperature regulation and pressure control, helping ensure consistent operational performance. Industrial CO₂ provides the advantage of stability under varying conditions, making processes more reliable and predictable. Its versatility and effectiveness make it an essential component in modern industrial systems.

The main product types of industrial carbon dioxide include liquid carbon dioxide, solid carbon dioxide (dry ice), and gaseous carbon dioxide. Liquid carbon dioxide is CO₂ that has been compressed and cooled into a liquid state for easier storage, transport, and industrial application. It is sourced from hydrogen production, ethyl alcohol production, ethylene oxide production, substitute natural gas production, and other processes, and is delivered through cylinders, bulk supply, and pipelines. It is used in applications such as enhanced oil recovery, ammonia synthesis, carbonation, shielding and inert gas functions, dry ice production, and more, serving end users across food and beverages, oil and gas, chemicals, building and construction, medical and pharmaceuticals, the metal industry, rubber and plastic, and other sectors.

The industrial carbon dioxide market consists of sales of food-grade carbon dioxide, beverage-grade carbon dioxide, welding-grade carbon dioxide, medical-grade carbon dioxide, and industrial-grade carbon dioxide cylinders. 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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