Xanthan Gum Market

Xanthan Gum Market Growth and Forecast (2023-2028):

The Global Xanthan gum market size is expected to reach USD 1.56 billion by 2028 from USD 1.05 billion in 2023, registering a CAGR of 6.14 % from 2023 to 2028.

Market Overview:

The Xanthan gum can be derived from plant-based polysaccharides or can be produced from simple sugars using a fermentation process. It has many functional properties, such as a fat replacer, thickening agent, stabilizing agent, and suspending agent. It is the most adaptable elastic thickener and is highly soluble in both cold & hot water. It is also highly viscous at low polymer concentrations and insensitive to a wide range of temperature, PH & electrolyte variations. Xanthan gum is widely used in the food & beverage industry owing to its thickening and stabilizing properties. It is even employed in formulations of baked products, juices, and gluten-free products. Moreover, it is used as an additive for drilling and fracturing fluids in the oil and gas industry. It also has wide applications in industries such as medicine, personal care, cosmetics, and many more.

Recent Developments in the Xanthan Gum Industry:

• In 2022, NMBU scientists stated food additives can affect the gut microbia. The study shows that gut bacteria have adapted rapidly and can digest the food additive, which can harm the gut if the dosage is exceeded.
• In 2021, Cargill introduced “Satiaxane VPC 911,” a vegan-suitable and cosmos-approved thickener for vegan-conscious consumers. It is a cost-efficient thickener and emulsion used in translucent and sprayable formulas.

REPORT COVERAGE:

Drivers:

Wide application in industries

There is diverse application of xanthan gum in end-user industries. Several industries, such as the food and beverage industry, oil and gas industry, medicine, personal care, cosmetics, and many others. The increase in the application of xanthan gum as an ingredient in the cosmetic industry is further expanding the market share. Moreover, the increase in the usage of natural thickeners in food processing industries and the rising demand for clean-label products are bolstering the xanthan gum market. In addition, Xanthan is compatible with halal and kosher claims and remains a promising substitute for animal-sourced hydrocolloids. This helps manufacturers who are willing to cater the vegetarian consumer needs. Several other factors, such as multi-functionality, gluten-free products, the rise in consumption of convenience foods, the rise in population, and changing diets globally, are fuelling the xanthan gum market expansion during the period.

Restraints:

Availability of substitute products

The availability of cheaper substitute products, such as corn starch, may hinder the xanthan gum market. The manufacturers will prefer cheaper raw materials over the high cost of xanthan gum in order to bring down their production costs. This will negatively impact the market. Further, any anti-dumping policies and stringent processing regulations can impede the growth of the xanthan gum market during the forecast period. Moreover, there are health reports claiming several health issues related to gum usage, and uncertainty about the purity of the xanthan gum market are a few restraining factors.

Opportunities:

The increase in demand for xanthan gum as an additive for drilling and fracturing fluids in the oil and gas industry is offering a lucrative opportunity for the xanthan gum market. The gum is considered inexpensive and abundantly available as a raw material offering substantial growth opportunities for the xanthan market during the forecast period. Further, the increase in the usage of xanthan gum as a thickening and stabilizing agent in the food and beverage industry provides numerous opportunities for the market. Moreover, an increase in clean-label products and a rise in health consciousness are propelling the market expansion during the period.

COVID-19 Impact on the Xanthan Gum Market:

The global pandemic has spread to almost 200 countries and disrupted a number of businesses around the world. Many countries faced economic crises along with containing the virus. U.N. reported a toll of 6.6 billion death due to COVID-19. The pandemic has resulted in unemployment, traveling restrictions, and challenges in imports-exports. Even there are supply and demand mismatches, which have negatively impacted interconnected economies globally. Several vital businesses are restricted from operating at full capacity while other businesses have shut down their production temporarily or scrapped the projects. This outbreak has an economic impact and implications for global markets. Even the Xantham gum market is negatively impacted owing to the pandemic crisis. Xanthum gum is used as an additive in the oil and gas industry. The low demand for oil and gas during the pandemic has, in turn, affected the Xantham gum market. Further, It has wide applications as a food additive in food processing industries. The restrictions and limitations levied on manufacturing units have further affected the market. However, gradual positive growth is observed post-COVID-19.

Xanthan Gum Market Segmentation Analysis:

By Application:

• Food & Beverages
• Sauces & Dressings
• Meat & Poultry Products
• Bakery Products
• Confectionery Products
• Beverages
• Dairy Products
• Others
• Oil & Gas
• Personal Care & Cosmetics
• Medical
• Others

The Food and Beverage segment holds the largest market share in the xanthan gum market during the forecast period. Xanthan gum is widely used in food processing industries. It functions as a stabilizing agent, thickening agent, fat replacer, and suspending agent in the food and beverage industry. It is used as a thickening agent in desserts and juices and stabilizing agent in emulsions. This wide application food industry is driving the xanthan gum market. Further significant growth is also witnessed in the personal care and cosmetic industry. Xanthan gum can retain moisture; this factor is widely applied in cosmetic products.

By Function:

• Thickening Agent
• Stabilizing Agent
• Suspending Agent
• Fat Replacer
• Others

The Thickening agent segment is anticipated to hold the largest market revenue during the forecast period. The thickening agents change the substance's properties by increasing its viscosity. Various food items such as sauce, soup, pudding, and desserts require thickening agents to maintain the texture and consistency of the product. This rapid rise in edible thickening agents in the food and beverage industry is accelerating the growth of the segment in the forecast period. Further, its application in the personal care and cosmetic industry as a thickener is contributing to market growth. Moreover, the increase in demand for clean-label products and the use of natural ingredients in products is propelling the growth of the xanthan market.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

The Asia Pacific region is witnessing the largest market revenue and is set to cross USD 465 million during the forecast period. This is driven by xanthan gum application in the cosmetic industry. It helps in retaining moisture and lowers the incidence of wrinkles and fine lines. Several countries, such as South Korea and China, have a highly growing cosmetic industry. This is driving the xanthan gum market in the Asia Pacific. Further rapid urbanization and income growth contribute to diversifying the diet and rise in clean label products in the region. Moreover, the rise in the food and beverage industry in countries such as Japan, chia, and India is driving the Xanthan gum market during the forecast period. In addition, India is a major wheat-consuming country and has the largest celiac disease population. Thus, rising health consciousness in the region is fuelling the market growth. Furthermore, increases in investments and initiatives by the government are propelling the growth in the market.

Key Players in the Market:

Major Key Players in the Global Xanthan Gum Market are

• Cargill, Incorporated
• Archer Daniels Midland Company
• BASF SE
• Ingredion Incorporated
• Deosen Biochemical Ltd.
• CP Kelco ApS
• DuPont de Nemours, Inc.