Carbon Dioxide Market Size, Share, Growth, Trends, and Global Industry Analysis: By Phase (Solid, Liquid, Gas) By Source (Ethyl Alcohol, Hydrogen, Ethylene Oxide, Ammonia, Natural Gas, Others) By Application (Food & Beverages, Medical, Oil & Gas, Chemicals, Firefighting, Metal Fabrication, Others) By Transportation (Pipeline, Road Tankers, Cylinders) and Region Forecast 2020-2031

Carbon Dioxide Market size was valued at US$ 10,836.2 million in 2024 and is projected to reach US$ 16,510.1 million by 2031 at a CAGR of 6.2% from 2025-2031. The market encompasses the production, distribution, and utilization of CO? across various industries including food and beverage, chemicals, healthcare, oil recovery, and water treatment, with sources ranging from industrial processes to biogenic capture and atmospheric recovery.

The market is expanding due to its diverse use cases, especially in food and beverage carbonation, enhanced oil recovery (EOR), and medical applications. The rising demand for packaged and carbonated beverages, along with its critical role in pH balancing and cryogenic preservation, continues to drive industrial-scale utilization. Additionally, environmental pressures are nudging industries toward CO? capture, reuse, and sustainable sourcing, enhancing its appeal across green-tech and circular economy frameworks.

However, challenges exist in the form of storage, handling complexities, and safety concerns. Moreover, the environmental impact of industrial CO? emissions and the cost of capture and purification technologies may restrain market growth. Fluctuations in feedstock availability and regulatory barriers related to emission control standards also affect long-term prospects.

Facts & Figures

• Carbon dioxide (CO?) has a molecular weight of 44.01 g/mol and exists naturally in Earth's atmosphere at a concentration of approximately 0.04% (400 ppm).
• The triple point of carbon dioxide is 5.1 atm at -56.6°C, which allows it to exist simultaneously in gas, liquid, and solid forms under specific conditions.
• Solid CO?, commonly known as dry ice, sublimates directly into gas at -78.5°C, making it ideal for cold chain logistics without leaving any liquid residue.
• In the food and beverage industry, food-grade CO? must meet ISBT (International Society of Beverage Technologists) purity standards—typically 99.9% pure with tight controls on contaminants like hydrocarbons or sulfur compounds.

Key Developments

• In June 2024, Linde plc announced the expansion of its CO? purification and liquefaction unit in Texas to support rising demand from food and beverage customers.
• In April 2024, Air Liquide partnered with a cement plant in Europe to pilot a new carbon capture process that converts CO? into calcium carbonate.
• In February 2024, Messer Group developed a mobile CO? recovery system targeting small-scale breweries and dairy producers.
• In January 2024, SOL Group launched a line of green CO? for horticulture and pharmaceutical use across its Italian and Spanish markets.

Carbon Dioxide Market Segmentation

Based on the phase

• Solid
• Liquid
• Gas

Liquid carbon dioxide (CO?) is widely utilized across industries for its versatile properties, particularly in the food and beverage sector and in medical applications. Its ability to be stored under pressure at low temperatures makes it ideal for applications like carbonated beverages, refrigeration, and cryogenic freezing. Liquid CO? is also used in pharmaceutical transport where temperature-sensitive drugs require stable, cold environments. Its non-toxic and inert nature ensures safety in food-grade applications. Furthermore, it serves as a solvent in supercritical CO? extraction processes, often seen in flavorings, essential oils, and decaffeination. The growing emphasis on sustainable refrigerants and efficient cold chains is driving the increasing demand for liquid CO?, making it a critical phase in the broader carbon dioxide value chain.

Based on the source

• Ethyl Alcohol
• Hydrogen
• Ethylene Oxide
• Ammonia
• Natural Gas
• Others

Carbon dioxide derived from ethyl alcohol production is a prominent example of industrial symbiosis. During fermentation, ethanol-producing industries generate large amounts of CO? as a byproduct, which can be captured, purified, and reused. This form of recovery is widely seen in distilleries and bioethanol manufacturing plants. The process is relatively cost-effective and considered more environmentally friendly than producing CO? via fossil fuels. CO? from ethyl alcohol is often used in beverage carbonation, food preservation, and greenhouse enrichment due to its relatively high purity. As ethanol production expands—particularly from biomass—so does the availability of this eco-friendly CO? source. The trend aligns with sustainability goals and strengthens circular economy models in the chemical and food sectors.

Based on the application

• Food & Beverages
• Medical
• Oil & Gas
• Chemicals
• Firefighting
• Metal Fabrication
• Others

The food and beverage sector remains one of the largest consumers of carbon dioxide. CO? is integral to beverage carbonation—used in soft drinks, sparkling water, and beer—to provide fizziness and preserve taste. It's also used in packaging to extend shelf life by inhibiting microbial growth through modified atmosphere packaging (MAP). In frozen food processing, liquid and solid CO? (dry ice) provide rapid cooling and freezing solutions that protect product texture and quality. Moreover, CO? is employed in food-grade cleaning systems, pest control, and as an environmentally safer alternative to some refrigerants. With rising demand for packaged and processed foods worldwide, the role of CO? in enhancing food safety, shelf life, and sensory appeal continues to expand.

Based on the transportation

• Pipeline
• Road Tankers
• Cylinders

Pipeline transportation is the most efficient and cost-effective method for moving large volumes of carbon dioxide over long distances. It is commonly used in industrial clusters, particularly near carbon capture and storage (CCS) facilities, where CO? must be transported from emission sources to sequestration or utilization sites. Pipelines ensure a continuous, high-volume flow of compressed or supercritical CO?, reducing reliance on truck or cylinder transport. The method is highly scalable and supports infrastructure expansion in regions investing in low-carbon technologies. As more countries pursue decarbonization goals, pipeline networks are expected to expand to connect CO? sources—like power plants and refineries—with storage hubs and EOR (enhanced oil recovery) fields, reinforcing the strategic value of this subsegment.