Xanthan Gum Market - Forecast(2024 - 2030)

The Xanthan Gum market size is forecast to reach USD 2.35 billion by 2030, after growing at a CAGR of 6.2% during the forecast period 2024-2030. The Xanthan Gum market has been experiencing substantial growth, reflecting its increasing importance across various industries. Market expansion is primarily driven by the rising demand for gluten-free food products, as Xanthan Gum serves as an essential ingredient in providing the desired texture and consistency in these products. The rising demand for convenience foods, coupled with the growing trend of clean label ingredients, has significantly driven the market's expansion. Moreover, Xanthan Gum's versatility in enhancing the texture and shelf life of food products has propelled its adoption in the pharmaceutical and cosmetic sectors.

Additionally, the increasing awareness and demand for natural and organic products have fueled the growth of the Xanthan Gum market, as it is considered a plant-based ingredient. The market is also benefiting from the rising consumer inclination towards gluten-free products, as Xanthan Gum serves as an effective alternative in gluten-free baking. The oil and gas industry's utilization of Xanthan Gum in drilling applications further contributes to the market's expansion. The gum's unique rheological properties make it an essential component in hydraulic fracturing fluids, ensuring optimal viscosity and fluid control during drilling operations. In December 2022, the National Iranian Oil Company (NIOC) announced the discovery of new oil reservoirs in southwest Iran. The company reported that it operates 14 oil and gas exploration blocks in the country.

The report “Xanthan Gum Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Xanthan Gum market.

By Function: Thickening Agent, Stabilizing Agent, Suspending Agent, Fat Replacer, Others

By Application: Food & Beverages, Oil & Gas, Personal Care, Medical, Others

By Geography:  North America (US, Canada, Mexico, Rest of North America), South America (Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica, Rest of South America) , Europe (UK, Germany, Italy, France, Netherlands, Belgium, Denmark, Spain, Rest of Europe), APAC (China, Australia, Japan, South Korea, India, Taiwan, Malaysia, Hong Kong, Rest of APAC)and RoW (Middle East (Israel, Saudi Arabia, UAE)), Africa (South Africa, Rest of Middle East & Africa))

• Asia-Pacific dominates the Xanthan Gum market owing to increasing demand for food products consisting xanthan gum especially bakery products as it is an effective thickening agent 

• Xanthan gum is used to increase moisture retention capacity and inhibit staling which results in increased shelf life of baked products. Furthermore, Consumers nowadays mainly prefer gluten-free food products, thus making xanthan gum as most preferential ingredient for such products.

• The industry is consolidated where limited major suppliers are present. Strategic initiatives taken by the major players in the market such as joint ventures and partnerships are expected to strengthen their position in the industry.

Thickening agent dominated the Xanthan Gum market in 2023. The growing product usage in food manufacturing industry in order to achieve the desired viscosity is anticipated to boost thickening agent market. For example, India created history in agriculture and processed food exports by exporting products worth US$ 25.6 billion in FY22. Export of APEDA products stood at US$ 7.4 billion as of April-June 2022, up 31% compared with US$ 5.7 billion over the same period last fiscal, according to the Directorate General of Commercial Intelligence and Statistics. Rising healthcare cost has led consumers to prefer nutritional products which will favor industry growth. Furthermore, thickening agents facilitates texture and increases shelf life of baked products which will favor the industry growth. Industries such as food and beverages, cosmetics, and pharmaceuticals favored xanthan gum for its effectiveness in enhancing texture and viscosity in products. The surge in demand for convenience foods, personal care products, and pharmaceutical formulations played a pivotal role in driving the market for xanthan gum as a thickening agent. This dominance also reflected the trust placed by manufacturers in xanthan gum to meet the growing consumer expectations for quality and consistency in end products.

Food and Beverages Industry has been the primary market for Xanthan Gum and is expected to grow with the CAGR of 4% during the forecast period from 2024 to 2030. Xanthan Gum is the primary ingredient used in salad dressings, toppings, sauces, dairy products, baked and frozen foods due to the presence of properties such as stabilization of emulsions, thermal stability and compatibility with usable ingredients. The other factor responsible for growth the xanthan gum is rise in demand for gluten free food products. Xanthan gum finds its largest use in the manufacturing of bakery products and the nutritional characteristics of xanthan gum further increases its acceptability, as it contains carbohydrates and fiber. The stability provided by Xanthan Gum in food processing, coupled with its ability to create desirable textures in products ranging from sauces and dressings to dairy and bakery items, made it a sought-after ingredient in the industry. The reliable thickening properties of Xanthan Gum, demonstrated in the creation of consistent and appealing textures, were a key factor driving its dominance in the market.

APAC dominated the Xanthan Gum market with a share of more than 41% in 2023, followed by North America and Europe. The APAC Xanthan Gum market is projected to experience significant growth during the forecast period. The growth of xanthan gum is attributed to the increasing demand for bakery and confectionary products from countries such as China, India, Malaysia, and Vietnam. The region's ascendancy in the Xanthan Gum industry can be attributed to several key factors. Firstly, the burgeoning food and beverage sector in Asia Pacific, driven by a growing population and changing dietary preferences, propelled the demand for Xanthan Gum as a versatile thickening agent and stabilizer in various food formulations. Additionally, the region witnessed a surge in industrial applications of Xanthan Gum, particularly in the oil and gas sector, further boosting its market presence. Moreover, the heightened focus on sustainable and clean-label products resonated well with Xanthan Gum's natural origin and eco-friendly characteristics, aligning with the increasing consumer awareness and preferences in the region.

                                                                                                                                              

Regulatory support provided to promote the food & beverage sector across globe is expected to support gluten-free xanthan gum demand over the forecast period. According to European Union (EU), Annex II and III to Regulation (EC) No 1333/2008 on food additives accepts xanthan gum as food additive. Further, the regulation states that xanthan gum can be used in food for infants under the age of 12 weeks. The favouring regulations can upsurge the xanthan gum market. Moreover, consumers are focusing on gluten free diet to reduce the health-related cost and to have naturally gluten free foods. The diverse group of consumers prefer gluten-free products. The main group includes those with celiac disease (CD), for whom a strict gluten-free diet (GFD) is the only treatment for managing the disease and reducing the risk of other complications. As xanthan gum is an alternative to gluten, its market will have a tremendous growth during forecasted period.

The Xanthan Gum industry is witnessing substantial growth propelled by the expanding Food and Beverage sector, which stands as a pivotal market driver. The relentless expansion of the global food and beverage industry has presented a significant demand for versatile ingredients, and Xanthan Gum has emerged as a preferred choice. Recognized for its multifunctional properties, Xanthan Gum serves as a crucial thickening, stabilizing, and emulsifying agent in various food applications. The demand surge can be attributed to its ability to enhance the texture, shelf life, and overall quality of food products. From sauces and dressings to dairy and bakery items, Xanthan Gum's versatility has made it an indispensable ingredient for manufacturers aiming to meet the evolving consumer preferences. As the Food and Beverage industry continues to innovate and cater to diverse tastes, Xanthan Gum's role is expected to intensify, consolidating its position as a key player in the broader spectrum of food formulation.

Xanthan gum is an ingredient used in many gluten-free recipes that includes, breads, cakes, and cookies. The high cost and baked goods made with xanthan gum can have gummy texture and slight aftertaste that may not appeal to few consumers. These shortcomings of xanthan gum have diverted the attention of baking industry towards its alternative ingredient known as guar gum. The availability of guar gum as a substitute is one of the restraints for the xanthan gum market. Furthermore, Agar agar, and chia seeds are other alternatives of xanthan gum which can restrain its market. The emergence of various substitutes, including guar gum, locust bean gum, and konjac gum, further intensifies competition within the market. The need for thorough testing, adaptation to diverse applications, and ensuring cost-effectiveness in the production of these alternatives pose significant hurdles for industry players.

Technology launches, acquisitions, and Partnership activities are key strategies adopted by players in the Xanthan Gum market. In 2023, The major players in the Xanthan Gum market are

 In July 2022, CP Kelco announced an increase in bio-gum production capacity to meet the growing demand for xanthan gum. The company is expanding its facilities in the United States and China.

 In May 2023, Fufeng Group introduced its new product, the Fufeng Xanthan Gum Powder. This innovative product is derived from cornstarch, undergoing a fermentation process by Xanthomonas bacterium, followed by extraction, drying, and crushing into the final powder form.