The global carbon dioxide (CO2) market was valued at USD 10.94 billion in 2023, with a projected compound annual growth rate (CAGR) of 5.0% from 2024 to 2030. This steady growth is driven by CO2's expanding applications, particularly in enhanced oil recovery (EOR) processes, which have become increasingly crucial due to the depletion of global oil reserves and the growing reliance on crude oil imports, especially in regions like the Asia Pacific. EOR techniques using CO2 have become essential for prolonging the operational life of oil fields and improving oil extraction efficiency, making CO2 a valuable resource in the oil and gas sector. Furthermore, the rising demand from other industries, such as food and beverages and the medical sector, is expected to further drive the growth of the CO2 market during the forecast period.

The U.S. remains one of the largest and most prominent markets for CO2 globally. The country’s industrialization, along with the flourishing oil and gas industry, contributes significantly to its growth. In terms of revenue, the CO2 market in the U.S. is forecasted to grow at a CAGR of 4.9% over the next several years. Industrial applications, technological advancements in oil recovery techniques, and the increasing demand for CO2 in various sectors such as food, beverages, and medical applications are key drivers of this growth.

Gather more insights about the market drivers, restrains and growth of the Carbon Dioxide Market

Application Insights Segmentation

Food & Beverages

In 2023, the food and beverages sector dominated the CO2 market, contributing over 50.0% of the revenue share. This substantial share is attributed to the increasing use of CO2 in cryogenic freezing, a process that offers flexibility and precision in controlling temperature compared to conventional mechanical refrigeration methods. Cryogenic freezing with CO2 is widely preferred in the processing and preservation of various food products, including bakery items, confectionery, meat, and seafood. The process ensures better preservation of aromas, nutrients, and natural taste, while also maintaining the color and quality of the food, which appeals to both manufacturers and consumers. Additionally, cryogenic freezing increases production capacity and extends product shelf life, contributing to its widespread use in the food and beverage industry.

CO2 is also extensively used in modified atmosphere packaging (MAP), a packaging method that replaces the natural atmosphere within a package with a specific gas mixture (including CO2) to prevent spoilage and extend the shelf life of perishable food products. MAP is especially common in packaging meat, fruits, vegetables, salads, and bakery items, as it helps maintain the freshness and quality of the food for longer periods. Similarly, controlled atmosphere storage (CAS) techniques, which rely on CO2 to control oxygen levels, are widely used for long-term storage of agricultural products, protecting them from pests and extending their shelf life. This use of CO2 in preserving food products positions it as an essential component in the global food supply chain.

Oil & Gas Industry

The oil and gas sector is another significant consumer of CO2, particularly in upstream well servicing and enhanced oil recovery (EOR) applications. In EOR, CO2 is injected into mature oil fields to increase the recovery rate of oil, often boosting extraction efficiency by 30% to 60% compared to traditional methods like natural gas injection or water flooding. The CO2-EOR technique enables operators to extract more oil from reservoirs that are nearing the end of their productive life, thereby extending the economic viability of oil fields and reducing the need for new exploration.

The use of CO2 in hydraulic fracturing (fracking) is also notable. In hydraulic fracturing, CO2 is injected into oil and gas wells to break apart rock formations and release trapped hydrocarbons. This technique is particularly valuable in shale and tight oil formations, where conventional methods struggle to extract oil efficiently. As oil companies look to maximize output from existing wells while reducing their environmental footprint, CO2 plays a crucial role in enabling more sustainable and efficient extraction processes. Given the global focus on optimizing energy resources, the demand for CO2 in oil and gas operations is expected to remain strong in the coming years.

Medical Applications

The medical sector is also contributing to the expanding CO2 market, as the gas is widely used in several healthcare applications. CO2 is commonly utilized in minimally invasive surgeries, where it is employed to insufflate body cavities, creating a clear space for surgeons to operate. Additionally, CO2 plays a role in respiratory therapy, where it is used in certain breathing mixtures for patients with respiratory conditions. The growing demand for advanced healthcare services, coupled with the increasing prevalence of chronic diseases that require surgical interventions, has led to a rise in the use of CO2 in medical treatments.

Sustainability and Environmental Impact

Sustainability is becoming an increasingly important factor in the growth of the CO2 market. Many industries, including food processing and oil and gas, are seeking ways to reduce their environmental footprint. The use of CO2 in EOR is seen as a more sustainable approach to oil extraction, as it allows companies to maximize the recovery of existing reserves rather than exploring new, often more ecologically sensitive, areas for oil. Moreover, CO2 is being explored for its potential in carbon capture and storage (CCS) technologies, which aim to reduce greenhouse gas emissions by capturing CO2 produced from industrial activities and storing it underground. These technologies are gaining traction as governments and industries work to meet carbon reduction targets and address climate change concerns.

In summary, the global carbon dioxide market is poised for steady growth, driven by its diverse applications across industries such as food and beverages, oil and gas, and healthcare. The expanding use of CO2 in advanced technologies for enhanced oil recovery, food preservation, and medical treatments, combined with its role in sustainability efforts, positions it as a critical component in both industrial and environmental sectors. As industries continue to evolve, the demand for CO2 will likely increase, further propelling the market forward.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.