U.S. Carbon Dioxide Market Size, Share, Trends, Industry Analysis Report

Overview

The U.S. carbon dioxide (CO2) market size was valued at USD 2.36 billion in 2024, growing at a CAGR of 4.08 % from 2025 to 2034. Key factors driving demand for U.S. CO2 include increasing adoption of carbonated drinks, growing production of automobiles, and high urbanization.

Key Insights

• The ethyl alcohol segment accounted for 30.55% of the U.S. carbon dioxide (CO2) market share in 2024 due to the rising adoption of ethanol as a clean fuel alternative.
• The oil & gas segment held 66.58% of the U.S. carbon dioxide (CO2) market share in 2024 due to rising investments in oil & gas exploration activities and recovery projects.

Industry Dynamics

• The increasing adoption of carbonated drinks in the U.S. is fueling demand for carbon dioxide as carbonated beverage manufacturers depend on CO2 for carbonation, preservation, and extending shelf life.
• Growing production of automobiles in the U.S. is driving the demand for carbon dioxide as automakers rely on CO2 for welding and metal fabrication, which remain essential for assembling car bodies and structural components.
• Expanding investments in healthcare infrastructure in the U.S. are projected to create a lucrative market opportunity during the forecast period.

• High energy consumption in capturing and storing CO₂ hinders the market growth.

AI Impact on the U.S. Carbon Dioxide (CO2) Market

• AI enhances energy efficiency in industries, reducing CO2 emissions and lowering demand for carbon allowances.
• AI-driven carbon monitoring improves emissions tracking, increasing market transparency and compliance.
• AI supports predictive modeling for carbon pricing and policy, enabling better forecasting and investment in low-carbon technologies.

Market Statistics

• 2024 Market Size: USD 2.36 Billion
• 2034 Projected Market Size: USD 3.58 Billion
• CAGR (2025–2034): 4.08%

The U.S. carbon dioxide (CO2) market plays a critical role in supporting multiple industries due to its wide range of applications and benefits. The food and beverage industry uses CO2 extensively for carbonation in soft drinks, preservation of frozen foods, and modified atmosphere packaging to extend shelf life. The oil and gas sector applies CO2 in enhanced oil recovery (EOR) to boost extraction efficiency from reservoirs, while the medical industry relies on it for respiratory therapies, minimally invasive surgeries, and as an insufflation gas.

CO2 is essential in firefighting systems for suppressing electrical and industrial fires without leaving harmful residues, and in rubber and chemical processing, it acts as a feedstock and processing aid. The growing demand for sustainable solutions in the U.S. is increasing interest in captured and recycled CO2, reducing emissions and supporting carbon management initiatives.

The demand for carbon dioxide (CO2) in the U.S. is driven by high urbanization. According to the World Bank Group, the urban population in the U.S. reached 84% in 2024 from 83% in 2022. This drove higher consumption of soft drinks, beer, and sparkling water, which rely on CO2 for carbonation and preservation. Expanding food processing and cold storage facilities in cities also use CO2 for refrigeration and packaging to maintain product freshness. Additionally, urban hospitals and clinics are using CO2 in surgeries, diagnostic procedures, and as a medical gas. Rising construction and industrial activities in urban areas are further creating demand for CO2 in welding, fire suppression systems, and enhanced oil recovery. Therefore, as urbanization increases, the demand for carbon dioxide also spurs.

Drivers & Opportunities

Increasing Adoption of Carbonated Drinks: The rising adoption of carbonated drinks in the U.S. is fueling demand for carbon dioxide as carbonated beverage manufacturers depend on CO2 for carbonation, preservation, and shelf life extension. Rising disposable income in the U.S. is further propelling the demand for carbonated drinks, especially among younger populations, leading to high adoption of CO2. For instance, Bureau of Economic Analysis, in its report, stated that the disposable personal income in the U.S. increased by 0.6% in April 2025 from March 2025. Breweries in the countries are also relying on CO2 for producing beer and maintaining product quality during storage and transportation. Therefore, as consumption of carbonated drinks rises in the country, beverage companies purchase more CO2 to meet production needs, directly driving higher demand in the market.

Growing Production of Automobiles: Automakers rely on CO2 for welding and metal fabrication, which remain essential for assembling car bodies and structural components. Paint shops use CO2 in dry-ice blasting to clean surfaces and maintain equipment without harmful chemicals. Expanding automotive production in the U.S. is also increasing demand for CO2-based cooling systems in casting and molding operations. United States Motor Vehicle Production was reported at 10.61 million units in December 2023, an increase from the previous number of 10.05 million units in December 2022. Moreover, the rising production of electric vehicles (EVs) requires precise battery manufacturing, where CO2 helps in maintaining controlled environments and reducing contamination. Hence, as automobile production expands, these applications drive consistent growth in CO2 consumption.

Segmental Insights

Source Analysis

Based on source, the segmentation includes hydrogen, ethyl alcohol, ethylene oxide, substitute natural gas, and others. The ethyl alcohol segment accounted for 30.55% of the U.S. carbon dioxide (CO2) market share in 2024 due to its extensive role in CO2 generation during the fermentation process in ethanol production facilities. Strong demand for biofuels, driven by rising adoption of ethanol as a clean fuel alternative, boosted CO2 output from this source. The beverage and food processing industries also relied heavily on CO2 derived from ethyl alcohol for carbonation, packaging, and preservation applications. Moreover, the expanding pharmaceutical sector and advancements in dry ice production for cold chain logistics further increased reliance on this source.

The substitute natural gas segment is projected to register a CAGR of 4.60% from 2025 to 2034, owing to rising focus on sustainable and cleaner CO2 sourcing methods. The growing adoption of carbon capture and utilization (CCU) technologies in synthetic natural gas plants is supporting this shift, as it allows producers to recover and supply CO2 for commercial use rather than emitting it into the atmosphere. Rising investments in renewable energy and government support for reducing carbon footprints are expanding segment growth. Moreover, the growing need for CO2 in enhanced oil recovery and industrial applications is projected to fuel the adoption of substitute natural gas as a reliable source.

Application Analysis

In terms of application, the segmentation includes food & beverages, oil & gas, medical, rubber, firefighting, and others. The oil & gas segment held 66.58% of the U.S. carbon dioxide (CO2) market share in 2024 due to extensive use of CO2 in enhanced oil recovery (EOR) operations. Oil companies injected CO2 into oil fields to improve extraction efficiency and extend the life of existing wells. Rising domestic energy production and the need to maximize output from declining reserves further propelled the adoption of CO2 in the oil & gas industry. Moreover, the industry increasingly relied on CO2 for pipeline pressurization and refining applications, strengthening its dominance. The rising investments in oil & gas exploration and recovery projects led to the adoption of CO2, which contributed to segment dominance.

The food & beverages segment is expected to register a CAGR of 4.45% from 2025 to 2034, owing to the rising use of CO2 for carbonation, packaging, and preservation of food. Rising demand for frozen and packaged food is also fueling the consumption of carbon dioxide, as it supports modified atmosphere packaging and dry ice applications for cold chain logistics. Additionally, increasing preference for convenience food, coupled with expanding food delivery networks, is driving the adoption of CO2 in the food & beverages sector.

Key Players & Competitive Analysis

The U.S. carbon dioxide (CO2) market is highly competitive, dominated by major industrial gas suppliers such as Air Liquide USA LLC, Air Products and Chemicals, Inc., Linde plc, and Messer Group GmbH. These industry leaders leverage extensive production capabilities, nationwide distribution networks, and long customer relationships to maintain market share. Regional players such as Matheson, Greco Gas Inc., and Continental Carbonic Products, Inc. focus on niche markets and localized supply, enhancing service responsiveness. Emerging companies such as Zephyr Solutions, LLC, and Universal Industrial Gases, Inc. are introducing innovative delivery models and sustainability-focused solutions. TAIYO NIPPON SANSO CORPORATION adds global expertise to the competitive mix. Increasing demand from food and beverage, oil recovery, and environmental applications drives innovation and strategic partnerships. The market remains consolidated and dynamic, with competition focusing on reliability, purity, cost-efficiency, and sustainability in CO2 sourcing and distribution.

A few major companies operating in the U.S. carbon dioxide (CO2) market include Air Liquide USA LLC; Air Products and Chemicals, Inc.; Continental Carbonic Products, Inc.; Greco Gas Inc.; Linde plc; Matheson; Messer Group GmbH; TAIYO NIPPON SANSO CORPORATION; Universal Industrial Gases, Inc.; and Zephyr Solutions, LLC.

Key Companies

• Air Liquide USA LLC
• Air Products and Chemicals, Inc.
• Continental Carbonic Products, Inc.
• Greco Gas Inc.
• Linde plc
• Matheson
• Messer Group GmbH
• TAIYO NIPPON SANSO CORPORATION
• Universal Industrial Gases, Inc.
• Zephyr Solutions, LLC

U.S. Carbon Dioxide (CO2) Industry Developments

In July 2024, Air Liquide announced that its large-scale CO2 liquefaction technology, Cryocap LQ, had been selected by Stockholm Exergi, Stockholm’s energy company, to contribute to its Bio-Energy Carbon Capture & Storage (BECCS) project.

In January 2024, Linde announced that it had started supplying clean hydrogen and captured carbon dioxide to Celanese, a global chemical and specialty materials company.

In May 2021, Continental Carbonic Products, Inc. opened a new liquid carbon dioxide (CO2) and dry ice manufacturing facility in El Dorado, Arkansas, U.S.

U.S. Carbon Dioxide (CO2) 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

U.S. Carbon Dioxide (CO2) Market Report Scope