Polaris Market Research today announced findings from its latest report, projecting the South America carbon dioxide market to grow from USD 1,705.99 million in 2023 to USD 2,454.15 million by 2032, at a CAGR of 4.1% over the 2024–2032 forecast period. The report profiles leading gas suppliers across four core market segments and six country groupings, offering a clear view of regional demand, supply strategies and competitive positioning.

Analyst Commentary on South America Carbon Dioxide Market Growth

“Demand for carbon dioxide in South America is being pulled by enhanced oil recovery, expanding food and beverage output and rising medical use, which together are reshaping market growth across the region,” said a Polaris Market Research analyst. “Suppliers that invest in capture, liquefaction and local production capacity are best placed to serve buyers as industry trends move toward cleaner CO2 sourcing.”

South America Carbon Dioxide Market Statistics at a Glance

• 2023 Market Size: USD 1,705.99 Million
• 2032 Projected Size: USD 2,454.15 Million
• CAGR (2024–2032): 4.1%
• Largest Country (2023): Brazil

Key Growth Drivers, Major Companies and Segments Covered

Growth Drivers: Rising use of enhanced oil recovery (EOR), growing consumption of carbonated beverages, and expanding applications in medical, refrigeration and chemical industries are the primary forces behind the market’s expansion, alongside growing demand for liquid CO2 and dry ice. In EOR, CO2 is injected into mature oil reservoirs to lift recovery rates while sequestering carbon underground, a dual benefit that supports regulatory interest. In the medical field, CO2 is used for insufflation in laparoscopy and endoscopy and in cryotherapy, lifting demand for medical-grade supply.

Major Companies Covered: Linde Plc, Messer SE & Co. KGaA, Air Products Inc., White Martins, Air Liquide, SOL Group, Oxigas Gases, Zephyr Solutions, LLC. Competition centers on technology, distribution reach and product breadth, with partnerships and acquisitions widely used to extend geographic presence.

Segments Covered: By Sources (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas), By Form (Solid, Liquid, Gas), By Application (Food & Beverages, Oil & Gas, Medical, Rubber, Fire Fighting), By Country.

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https://www.polarismarketresearch.com/industry-analysis/south-america-carbon-dioxide-market 

Segment Insights and Market Restraints

Hydrogen accounted for the largest share by source, as steam methane reforming produces CO2 as a by-product, while ethyl alcohol is anticipated to grow at the fastest pace because fermentation yields high-purity CO2 that can be captured and sold. By form, solid CO2, or dry ice, led the market on rising demand for frozen food logistics, whereas the liquid segment is expected to register the fastest CAGR on strong pull from soft drinks, beer, bottled water and healthcare.

The main restraint is cost. Carbon capture, liquefaction and transportation require heavy upfront capital for capture equipment, pipelines and storage sites, which can deter adoption among operators with narrow margins or limited funding access.

Market Outlook: Competitive Strategy and Opportunities in South America

Competition in the South America carbon dioxide market is intense, with established gas majors relying on technical expertise, economies of scale and wide distribution networks to protect share, while emerging companies target niche segments and innovative solutions. Partnerships, mergers and acquisitions remain common tactics for widening geographic reach.

Looking ahead, the region’s carbon policy agenda, including Brazil’s planned regulated carbon market, could open new revenue streams for suppliers able to capture and commercialize CO2 from ethanol fermentation and hydrogen production. Buyers should weigh supply reliability, purity and logistics when selecting partners.

Recent Developments in the South America Carbon Dioxide Market

• April 2024: Brazilian waste management firm Orizon prepared to sell carbon offsets from landfill projects, expecting to finalize a sale of 1–2 million tCO2e in the second quarter at USD 6–7 per tCO2e.
• December 2023: Brazil advanced plans for a regulated carbon market built on a cap-and-trade system, aimed at cutting emissions and attracting foreign investment, though agriculture is exempt.
• March 2021: Messer announced plans to expand CO2 supply for customers in Brazil’s South, Southeast and Midwest regions, including sustainable production in Jandaia do Sul, Paraná.

Regional Snapshot: Brazil Leads the South America Carbon Dioxide Market

Brazil led the region in 2023, supported by expanding CO2 supply capacity and a growing industrial base that uses the gas for carbonation, pH control and inert gas shielding across food and beverage, oil and gas, pharmaceutical and manufacturing operations. The report also covers Argentina, Chile, Colombia, Peru and the Rest of South America, giving buyers a country-level view of demand through 2032.

Why It Matters for Buyers Evaluating the South America Carbon Dioxide Market Forecast

For stakeholders researching the South America carbon dioxide market forecast, the underlying report benchmarks market share, company positioning and segment-level projections to support sourcing, partnership and investment decisions through 2032. It also examines value chain dynamics, Porter’s Five Forces and the impact of COVID-19 on regional demand.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions.

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