Latin America Carbon Dioxide Market Size, Share, Trends, Industry Analysis Report

Overview

The Latin America carbon dioxide (CO2) market size was valued at USD 1.90 billion in 2024, growing at a CAGR of 4.09% from 2025 to 2034. Key factors driving demand for CO2 include growing demand for carbonated drinks, increasing adoption of electric vehicles, and expanding urbanization.

Key Insights

• The ethyl alcohol segment held 34.28% of the revenue share in 2024 due to strong agricultural production.
• The oil & gas segment accounted for 64.33% of Latin America carbon dioxide (CO2) market share in 2024 due to the region’s reliance on enhanced oil recovery (EOR) techniques.
• Brazil accounted for 43.19% of Latin America carbon dioxide market share in 2024, owing to its strong ethanol industry.
• The market in Chile is estimated to register a CAGR of 3.50% from 2025 to 2034, owing to expanding industrial activities, particularly in food and beverage production.

Industry Dynamics

• Growing demand for carbonated drinks is driving the need for carbon dioxide (CO2), as beverage manufacturers rely on it to carbonate soft drinks.
• Increasing adoption of electric vehicles is prompting automakers to ramp up production of lithium-ion batteries, which rely on high-purity CO2 in their manufacturing processes.
• Rising demand for medical-grade CO2 in surgeries, respiratory therapies, and other medical applications is expected to create a lucrative market opportunity during the forecast period.
• High energy consumption in capturing and storing CO2 hinders the market growth.

Market Statistics

• 2024 Market Size: USD 1.90 Billion
• 2034 Projected Market Size: USD 2.82 Billion
• CAGR (2025–2034): 4.09%
• Brazil: Largest Market Share in 2024

AI Impact on Latin America Carbon Dioxide (CO2) Market

• AI optimizes energy use in industries, reducing CO2 emissions across Latin America.
• Smart grids powered by AI enhance the integration of renewable energy, thereby decreasing dependence on fossil fuels.
• AI-driven monitoring improves deforestation detection, aiding carbon sequestration efforts.
• Predictive analytics support climate policy planning and real-time emission tracking.

Carbon dioxide (CO2) is a colorless, odorless gas that is a critical component in processes such as photosynthesis. Industrially, CO2 is used in carbonating beverages, enhancing oil recovery, and in portable fire extinguishers and refrigeration. Emerging technologies are focused on capturing and utilizing carbon dioxide (CO2). This includes carbon capture, utilization, and storage (CCUS) to convert captured CO2 into valuable products such as synthetic fuels, plastics, and building materials, creating a circular carbon economy.

In Latin America, carbon dioxide emissions are rising due to expanding energy demand, deforestation, and industrial growth. Countries such as Brazil, Mexico, and Argentina are significant contributors, primarily due to their reliance on transportation, agriculture, and fossil fuel use. Several Latin American nations are exploring carbon capture and green technology initiatives, supported by international climate funding. Afforestation projects and sustainable land management also play crucial roles. Regional cooperation through organizations such as the UN and OAS promotes climate action, aiming to balance economic development with environmental protection and transition toward low-carbon economies across the region.

The demand for Latin America carbon dioxide (CO2) is driven by expanding urbanization. United Nations Office for Disaster Risk Reduction, in its findings, stated that the urban population in Latin America is projected to reach 87% by 2050. This is driving the consumption of food and beverages. This factor is increasing the need for CO2 as it is used in the food and beverage sector for processes such as carbonation. Urbanization is further increasing investment in vertical farming, leading to high consumption of CO2, as vertical farms use it for enrichment to accelerate plant growth and improve crop yields. Additionally, rising urbanization is increasing the development of infrastructure, which is driving the use of CO2 in concrete curing technologies.

Drivers & Opportunities

Growing Demand for Carbonated Drinks: The increasing demand for carbonated drinks in Latin America is driving the need for carbon dioxide (CO2), as beverage manufacturers rely on it to carbonate soft drinks, sparkling water, and beer. Additionally, the rising popularity of craft beverages and niche carbonated products in the region is adding to the demand, as smaller producers also need a steady CO2 supply. Therefore, the growth of carbonated drinks in the region is fueling CO2 demand.

Increasing Adoption of Electric Vehicles: The growing adoption of electric vehicles (EVs) in Latin America is prompting automakers to ramp up production of lithium-ion batteries, which rely on high-purity CO2 in their manufacturing processes. The International Energy Agency, in its report, stated that electric car sales in Brazil more than doubled in 2024. Additionally, increasing adoption of electric vehicles (EVs) is fueling the growth of EV infrastructure, such as fast-charging stations, which rely on advanced materials and chemicals, many of which use CO2 as a feedstock or processing agent. Thus, the surge in EV adoption transforms transportation and drives CO2 demand across multiple industrial applications.

Segmental Insights

Source Analysis

Based on source, the segmentation includes hydrogen, ethyl alcohol, ethylene oxide, substitute natural gas, and others. The ethyl alcohol segment held 34.28% of the revenue share in 2024 due to strong agricultural production, particularly in Brazil. This propelled the availability of ethanol, which producers used extensively for CO2 generation. The established bioethanol industry in countries such as Brazil and Argentina also ensured a consistent supply of fermentation-derived carbon dioxide. The combination of abundant feedstock and favorable government policies promoting biofuels positioned ethanol-based CO2 as the dominant source across the region.

The substitute natural gas segment is projected to register a CAGR of 4.31% from 2025 to 2034, owing to a rising shift toward cleaner and more reliable sources of carbon dioxide. Rapid urbanization and rising energy demand are encouraging the use of substitute natural gas in power generation and industrial applications, which supports CO2 recovery from this source. Countries such as Mexico and Chile are increasing investments in synthetic fuel and gasification technologies, creating new opportunities for CO2 production. The push to reduce dependence on conventional fossil fuels, along with government-led decarbonization initiatives, strengthens the segment's growth.

Application Analysis

In terms of application, the segmentation includes food & beverages, oil & gas, medical, rubber, firefighting, and others. The oil & gas segment accounted for 64.33% of Latin America carbon dioxide (CO2) market share in 2024 due to the region’s reliance on enhanced oil recovery (EOR) techniques. Countries such as Brazil and Venezuela used CO2 injection to maximize crude output from oilfields and improve extraction efficiency. The segment also benefited from large-scale refining and petrochemical activities that required CO2 for various operational processes. Rising investments in upstream oil and gas projects across Brazil’s pre-salt reserves further fueled demand.

The food & beverages segment is expected to register a CAGR of 4.44% from 2025 to 2034, owing to shifting consumer lifestyles, rising urbanization, and increasing disposable incomes. Brazil, Mexico, and Argentina lead CO2 consumption by expanding carbonated beverage production capacity to meet rising demand. Additionally, growing penetration of quick-service restaurants and the expansion of retail networks strengthen the need for CO2 in beverage dispensing and refrigeration.

Country Analysis

The Brazil carbon dioxide market accounted for 43.19% of the revenue share in Latin America in 2024. This dominance is attributed to its strong ethanol industry, which provided a steady and cost-effective source of CO2. Strong agricultural production, particularly in sugarcane, enabled large-scale bioethanol manufacturing, ensuring consistent CO2 recovery. Moreover, the food and beverage industry in the country relied heavily on CO2 for carbonation, refrigeration, and packaging, supported by Brazil’s large consumer base and the presence of global beverage producers.

The Chile carbon dioxide market is estimated to register a CAGR of 3.50% from 2025 to 2034, owing to expanding industrial activities, particularly in food and beverage production, where companies use CO2 for carbonation and preservation. Increasing mining operations in the country are also driving demand, as CO2 finds use in pH control during mineral processing. Chile’s push toward sustainable practices is encouraging carbon capture and utilization, prompting industries to adopt CO2 in enhanced oil recovery and concrete curing to reduce emissions. Additionally, rising consumer demand for packaged and processed foods is boosting the need for CO2 in modified atmosphere packaging. Advancements in greenhouse agriculture are further increasing reliance on CO2 to enhance crop yields.

Key Players & Competitive Analysis

In the Latin America carbon dioxide market, Linde Plc, Messer SE & Co. KGaA, Air Products Inc., White Martins, Zephyr Solutions, LLC, and Air Liquide stand out as key competitors. These companies compete, leveraging their technological capabilities, distribution networks, and diverse product portfolios to capture market share. Established players leverage their technological expertise and economies of scale to maintain significant market share, while emerging companies often focus on niche segments or innovative solutions to gain a foothold. Additionally, partnerships, mergers, and acquisitions are prevalent strategies for enhancing market presence and expanding geographical reach.

A few major companies operating in the Latin America CO2 market include Air Liquide; Air Products Inc.; Linde Plc; Messer SE & Co. KGaA; Oxigas Gases; SOL Group; Technip Energies; White Martins; and Zephyr Solutions, LLC.

Key Companies

• Air Liquide
• Air Products Inc.
• Linde Plc
• Messer SE & Co. KGaA
• Oxigas Gases
• SOL Group
• Technip Energies
• White Martins
• Zephyr Solutions, LLC

Latin America Carbon Dioxide (CO2) Industry Developments

In April 2024, Messer announced the launch of "ZeCarb", a carbon capture as a service to decarbonize industries with high CO2 emissions.

In July 2023, Technip Energies and LanzaTech Global, Inc. signed a joint collaboration agreement to transform waste carbon into ethylene, the most common building block in petrochemicals.

Latin America Carbon Dioxide Market Segmentation

By Source Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

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

By Application Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

• Food & Beverages
• Oil & Gas
• Medical
• Rubber
• Firefighting
• Others

By Country Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

• Brazil
• Argentina
• Chile
• Columbia
• Peru
• Rest of Latin America

Latin America Carbon Dioxide Market Report Scope