For the Quarter Ending June 2025
North America
• The Liquid Carbon Dioxide Price Index in the U.S. showed moderate upward pressure during Q2 2025, with prices reaching USD 590/MT, DEL Illinois. This change was driven by feedstock cost inflation, particularly rising natural gas prices, and consistent downstream consumption.
• The price increase in June was primarily caused by higher natural gas costs, ethanol plant maintenance outages, and logistic inefficiencies (including driver shortages and elevated diesel prices). These factors had raised the Liquid Carbon Dioxide Production Cost Trend across key U.S. regions.
• LCO2 supply in the U.S. had remained stable but was affected by natural gas price volatility and infrastructure constraints. Feedstock sources such as ammonia, ethanol, and hydrogen experienced cost increases. Spot price variability had intensified due to LNG exports and regional bottlenecks, making the Liquid Carbon Dioxide Spot Price more susceptible to supply-side fluctuations.
• The Liquid Carbon Dioxide Demand Outlook in the U.S. remained firm due to seasonal beverage consumption and demand from dry ice and food processing industries. However, inflation and shifting consumer preferences—particularly toward non-carbonated and functional beverages—had begun reshaping product portfolios. Some producers were exploring alternative carbonation technologies to manage rising CO2 costs.
Asia-Pacific
• The Liquid Carbon Dioxide Price Index in China declined by 2.3% in June 2025, breaking the sustained upward trend seen during Q1 2025. This downward shift reflected a sharp contraction in demand, despite earlier surges in feedstock costs due to LNG tariffs.
• The price softness in June was driven by oversupply and weak demand. Despite high summer temperatures, beverage sales reportedly dropped by nearly 90% compared to usual volumes, which significantly impacted the Liquid Carbon Dioxide Spot Price and contributed to a downward shift in the Price Index.
• While overall production levels remained steady, the Liquid Carbon Dioxide Production Cost Trend in China continued to reflect natural gas market volatility. China had increased pipeline imports from Russia and reduced spot LNG purchases to stabilize feedstock costs. Trade tensions and tariffs on U.S. equipment had added to sourcing complications, prompting a shift toward domestic gas and greater self-reliance in industrial gases.
• The Liquid Carbon Dioxide Demand Outlook in China turned bearish in June, as sharp declines in carbonated and dairy beverage consumption—amid geopolitical and economic stress—led to significant oversupply. Market participants anticipated only a mild recovery by Q4 2025, tied to winter restocking and cold-chain stabilization.
Europe
• The Liquid Carbon Dioxide Price Index in Europe continued to climb throughout Q2 2025, with June seeing an additional 1.7% price increase. From April through June, cumulative CO2 price growth exceeded 5.6%, fueled by tight supply and surged energy input costs.
• The price surged in June resulted from elevated natural gas prices, intensified by Asian LNG demand, and a rise in regional electricity usage. Rising upstream ammonia and ethanol disruptions further increased the Liquid Carbon Dioxide Production Cost Trend, putting pressure on the Spot Price and the overall Price Index.
• European CO2 producers faced growing operational pressures in Q2 due to tightening environmental regulations, energy cost inflation, and reduced production capacity at ammonia plants. Natural gas scarcity—exacerbated by LNG competition from Asia—limited CO2 production flexibility and increased regional Liquid Carbon Dioxide Spot Price volatility.
• The Liquid Carbon Dioxide Demand in Europe remained strong, particularly within the beverage and food sectors. As consumer interest shifted toward functional, health-driven drinks, the demand for LCO2 remained elevated. Nevertheless, producers were increasingly challenged to manage rising production costs while protecting profit margins, especially during the summer peak.
For the Quarter Ending March 2025
North America
In Q1 2025, liquid carbon dioxide (CO2) prices in North America exhibited a steady downward trend, largely influenced by declining natural gas prices, a key feedstock in CO2 production. Warmer-than-expected weather forecasts across the U.S. and Europe weakened natural gas demand, reducing production costs and pushing CO2 prices lower through January and March.
Despite stable production rates, market sentiment remained muted as inventory data and energy fluctuations limited price recovery. Tariff-related uncertainties—particularly the 25% U.S. tariff on Canadian imports—posed challenges for cross-border trade, straining the supply chain and injecting caution into procurement strategies. While domestic availability remained sufficient, logistical delays and geopolitical tensions complicated supply dynamics. Demand was relatively stable, supported by consistent consumption in the food and beverage sector, particularly for carbonated drinks.
However, broader industrial demand remained cautious amid economic uncertainties. Investment in CO2 plant upgrades by companies like Messer Americas reflects long-term growth expectations, though short-term pricing remained under pressure. Overall, Q1 was marked by price softness, with a cautious outlook shaped by volatile energy markets and evolving trade policies.
APAC
In Q1 2025, the Asia-Pacific (APAC) liquid carbon dioxide (CO2) market witnessed significant price volatility, shaped primarily by fluctuating natural gas prices and regional supply constraints. January began with price hikes, as rising global LNG costs elevated CO2 production expenses. Beverage producers, especially in emerging markets, faced mounting pressure due to the crucial role of CO2 in carbonation. In February, while natural gas prices temporarily eased, weak downstream heating demand and tariff-related trade tensions—particularly between China and the U.S.—contributed to muted cost support and sluggish export growth. Despite firm supply availability, CO2 prices held steady as demand from the food, beverage, and chemical sectors remained moderate. However, March saw renewed turbulence with natural gas prices spiking due to energy shortages and seasonal demand peaks. Infrastructure limitations, including inadequate gas storage and logistics bottlenecks, further tightened supply, particularly in China. Robust demand from the beverage, healthcare, and manufacturing industries exacerbated the supply-demand imbalance. As a result, CO2 prices in APAC ended the quarter on a higher note, driven by supply chain pressures, strong industrial consumption, and persistent feedstock cost fluctuations.
Europe
In Q1 2025, the European liquid carbon dioxide (CO2) market witnessed a consistent upward price trend, primarily driven by elevated natural gas prices, which serve as a key feedstock in CO2 production. January marked the onset of this bullish momentum as natural gas costs surged, increasing production expenses across the board. Despite these pressures, demand from essential sectors—particularly food and beverage, pharmaceuticals, and welding—remained steady, supporting market stability. February brought further complications, with severe weather events and labor strikes disrupting port operations and tightening supply. Concurrently, rising energy costs and limited storage capacity added to cost support, keeping CO2 prices firm. By March, while the European Commission allowed the natural gas price cap to expire amid improved supply conditions, high gas prices persisted, sustaining upward pressure on CO2 costs. The beverage sector saw robust demand, influenced by urban consumption trends and warmer weather, which boosted electricity use and constrained CO2 feedstock. Overall, Q1 reflected a complex mix of rising production costs, geopolitical tensions, and resilient demand, suggesting a cautiously optimistic but volatile outlook for the European CO2 market moving forward.
For the Quarter Ending December 2024
North America
In Q4 2024, the price trend for Liquid Carbon Dioxide (CO2) in the U.S. experienced an incline, influenced largely by the rise in natural gas prices. This uptick in CO2 production costs was driven by higher natural gas prices, a key raw material for CO2 production. Despite these cost pressures, the market remained stable due to robust demand from sectors such as food and beverage, pharmaceuticals, and welding.
The food and beverage sector, which continued to be the largest consumer of CO2, helped stabilize demand, while industries like pharmaceuticals and chemicals also supported consumption. Despite a weakening manufacturing sector and lower business confidence, there were signs of recovery, especially in industrial activity.
Additionally, the holiday season further buoyed demand, particularly for beverages like soft drinks, which kept CO2 consumption high. Overall, CO2 prices showed an upward trend in response to rising energy costs, but demand remained steady across key industries.
APAC
The Liquid Carbon Dioxide price dynamics in Q4 of 2024 showcased a mixed price trend amidst fluctuating demand outlook and geopolitical issues. With natural gas prices falling during the quarter, production costs for CO2 decreased, contributing to modest price reductions.
Despite these lower prices, demand remained steady, particularly from key sectors such as food and beverage, pharmaceuticals, and welding. The food and beverage industry, which accounted for a significant portion of CO2 consumption, continued to drive demand, especially for carbonated drinks and packaged food preservation.
Additionally, the growing popularity of beverages like bubble tea supported CO2 consumption, particularly in Southeast and East Asia. The food and chemical sectors also contributed to stable demand for CO2. Although consumer preferences shifted towards budget-conscious options, premium beverages, including sodas from Coca-Cola, continued to maintain steady demand, balancing out market challenges.
Europe
In Q4 2024, Liquid Carbon Dioxide (CO2) prices in Europe saw an upward trend, driven by rising natural gas prices, which increased production costs for CO2. Despite these price hikes, demand remained stable due to continued consumption from key sectors such as food and beverage, pharmaceuticals, and welding.
The food and beverage industry, which accounted for a significant share of CO2 usage, continued to lead demand, particularly for carbonated soft drinks and food preservation. Additionally, the pharmaceutical and chemical industries sustained their use of CO2 for processes like supercritical fluid extraction.
Supply chain disruptions in Europe, exacerbated by geopolitical concerns and the holiday season, led to some delays in CO2 production, but demand was bolstered by the festive period.
The growing popularity of bubble tea across Europe further contributed to CO2 consumption, with coffee shops and cafés becoming important drivers. Despite challenges, the overall market outlook remained stable.
For the Quarter Ending September 2024
North America
In Q3 2024, the pricing environment for Liquid Carbon Dioxide in North America witnessed a consistent decrease, with the USA experiencing the most significant price changes. Various factors influenced market prices, including disruptions in the petroleum markets due to hurricanes, impacting crude oil production and refining operations.
The global freight industry also saw a surge in rates, affecting the transportation of goods and leading to higher prices. The demand from carbonated drinks manufacturers and sellers remained moderate, with some companies reporting revenue that exceeded expectations.
In the USA specifically, the pricing trends followed a decreasing sentiment, with prices declining by 1% from the previous quarter. Since over 75% of U.S. gas production came from large inland shale formations, analysts believed that hurricanes were more likely to lower gas prices by reducing demand through power outages and temporarily halting LNG export operations. The plant modernization efforts aimed to boost the supply of molecules within the network and reduce CO2 emissions at the facility, thereby supporting sustainability goals.
APAC
Liquid carbon dioxide prices in the Asian market had continued to follow a declining trend due to falling natural gas prices, which impacted the overall production costs of carbon dioxide. Meanwhile, the demand outlook for carbonated drinks remained moderate and well-balanced, with sufficient inventories to meet the needs of both domestic and international markets. Additionally, the Mid-Autumn Festival and plant shutdowns in the domestic market had influenced the final price quotations of liquid carbon dioxide. In a significant shift, the U.S. had overtaken Qatar as the leading global LNG exporter, facilitated by technological advancements that allowed shale producers to access vast reserves. Both countries were pursuing major LNG expansion projects, solidifying their influence in international markets across Europe and Asia. Global beverage companies had faced slower-than-expected sales growth in China for various reasons. In contrast, Thailand's beverage industry, particularly the carbonated soft drinks segment, had witnessed remarkable growth in product variety, driven by the hot and humid climate. This trend had led key industry players to introduce a diverse range of new brands and flavors, boosting demand from international markets, especially in China.
Europe
Liquid Carbon Dioxide pricing in the Europe region for Q3 2024 experienced a downward trend, particularly in France, where the market saw significant price declines. During the quarter, this was marked by disruptions and plant shutdowns at MOL Petrochemicals Plc in Hungary and Air Liquide in the Netherlands due to force majeure events like floods and power outages. These interruptions impacted the supply chain and contributed to a negative pricing environment. Overall, tightening supplies and reduced demand led to a -1% price change from the previous quarter and a -2% difference between the first and second halves. Northern European terminals faced congestion due to adverse weather, holiday-related port closures, and service disruptions, although major ports like Bremerhaven and Rotterdam continued to perform well. Severe weather conditions at South African ports were expected to delay cargo destined for Europe. An oversupply of naphtha in Europe also led to a significant price drop, affecting commodity production costs. Air Liquide in Rotterdam faced a brief disruption due to a power outage, impacting the supply chain slightly. Market players noted that unfavourable weather and cool temperatures created a challenging start to the final quarter, with beer and wine sales showing only fractional growth.
Frequently Asked Questions (FAQs)
1. What was the price of Liquid Carbon Dioxide in June 2025?
As of June 2025, the Liquid Carbon Dioxide Spot Price was approximately:
o U.S.: USD 165–180/MT FOB Texas
o Europe (Germany): EUR 185–195/MT FD
o China: CNY 1350–1450/MT EXW
2. Who were the top Liquid Carbon Dioxide producers in the United States?
Key U.S. producers included Linde PLC, Air Products and Chemicals Inc., Air Liquide, and Messer Group, which collectively dominated LCO2 production across industrial, beverage, and dry ice sectors.
3. What factors have influenced the Liquid Carbon Dioxide Production Cost Trend globally?
Globally, production cost trends were shaped by natural gas price fluctuations, ammonia/ethanol output instability, LNG trade imbalances, infrastructure bottlenecks, and tightening environmental regulations. In China, tariffs and feedstock import shifts due to geopolitical tensions further exacerbated cost pressures.
4. What was the Liquid Carbon Dioxide Demand Outlook for H2 2025?
o North America: Expected to remain stable, supported by seasonal demand from the beverage and dry ice sectors.
o Europe: Projected to stay strong, driven by beverage innovation and evolving consumer trends.
o Asia (China): Anticipated to stay weak in the short term, with a modest recovery projected by Q4 2025 as beverage restocking resumes.
