Xanthan Gum Market Research Report: Information by Form (Dry, and Liquid), Function (Thickener, Stabilizer, Fat Replacer, and Coating Material), Application (Food & Beverages, Pharmaceuticals & Nutraceuticals and Personal Care), and Region (North America, Europe, Asia-Pacific, and Rest of the World) —Forecast till 2030

Xanthan Gum Market Overview

The Global Xanthan Gum Market is projected to register a CAGR of 4.73% and reach a value of USD 730.39 million by 2030. Xanthan gum is a polysaccharide which has many industrial uses—it can be used as a common food additive, a gelling agent in pharmaceutical uses, and as an emulsifying surfactant in cosmetics. It is an effective thickening agent and stabilizer which prevent ingredients from separating once mixed. Increasing usage of the xanthan gum in food & beverages industry is anticipated to act as one of the significant factors for the rising growth of the xanthan gum market during the forecast period. Rising demand from pharmaceuticals industry is likely to upsurge the demand of xanthan gum during the forecast period. On the other hand, the presence of the alternative products is anticipated to restrict the growth of the market. Moreover, the demand for organic products is anticipated to offer a lucrative opportunity to the manufacturers of xanthan gum in the near future

COVID-19 Impact Analysis

The global pandemic, COVID-19, has created a crisis world over. Impacting over 195 countries, the pandemic has already created an economic backdrop worldwide and is likely to create a chaotic environment, resulting in the advent of global recession. The COVID-19 outbreak has completely turned the lives of people across the globe, with the number of cases rising rapidly every day. The COVID-19 impact across industries is different. Amid the constant fear and panic of the pandemic, consumers are highly concerned about keeping a check on their health. In the current scenario, though the vaccination rate is steadily increasing across the world, it has become important to boost immunity to fight coronavirus along with maintaining hygiene and following all medical advisories that have been laid down. Even the guidelines provided by WHO (World Health Organization) in their COVID-19 analysis suggest the world population to consume immunity-boosting foods. Even in the nutrition advice of the WHO for adults during the COVID-19 outbreak, they mention that the intake of vitamins, minerals, dietary fiber, proteins, and antioxidants is essential for the human body to fight this pandemic. This has increased the intake of functional foods and supplements among the population and is expected to boost the growth of the xanthan gum market in the coming years.

Market Dynamics

The xanthan gum market witnessed significant growth over the last few years and is projected to register a CAGR of 4.73% during the forecast period. The major growth drivers are the rising demand from pharmaceutical industry and increasing application from food and beverages industry. However, the availability of alternative items such as guar gum may limit the growth. Hence. The products are expected to create lucrative growth opportunities for players operating in the xanthan gum market during the forecast period. Furthermore, increasing product demand for various applications has derived further growth in the market.

Drivers:

• Increasing application from Food & Beverages Industry

Xanthan Gum is a long-chain polysaccharide-based excipient having D-Glucose, D-Mannose, and D-Glucuronic acid as building blocks in a molecular and It is a product of fermentation of a suitable sugar source using pure cultures of the micro-organism Xanthomonas. Xanthan gum enhances the viscosity of fluids that also helps to stabilizer and thickening agent in different types of food products.  Xanthan gum is broadly used in various foodstuffs including baked products, and dressings, meat and poultry, dairy products, confectionery, sauces and a variety of other foods. Xanthan gum is prominently utilized for the diverse food applications such as fruit cakes and ice creams, because it has multiple advantages such as improving the texture of bakery products, stability, extending shelf life, and water retention. Moreover, the Xanthan gum creates a pleasant texture in foods and beverages. In foods like dressings and sauces, xanthan gum helps to prevent oil separation by stabilizing the emulsion. The aforementioned use and rising demand from various applications Xanthan Gum has gained the popularity over the period of time.

Restraint:

• The availability of guar alternative product

The availability of guar gum as a replacement is one of the biggest barriers for the xanthan gum market. While xanthan gum is produced by a microbe known as Xanthomonas Campestris, guar gum is generated from a guar seed that is indigenous to tropical Asia. Due to its fundamental properties as a thickener, stabilizer, gelling agent, and emulsifier, it is extensively utilized in the oil and gas well drilling, food and beverage, pharmaceutical, textile, and pet food sectors. Guar gum, on the other hand, is mostly utilized in ice cream and pastry fillings, whilst xanthan gum is primarily utilized in the production of bread goods. However, the guar gum is used in place of xanthan gum due to its similarities in properties. The alteration in quantity for various food items is the primary distinction between the two components. Xanthan gum may be used in smaller amounts than guar gum. Both substances serve the same purpose and are utilized in the same applications, with the exception of the difference in amount. Additionally, xanthan gum often costs more than guar gum. Guar gum is utilized as a replacement all around the world since it has many characteristics with xanthan gum. Thus, the availability of the substitute product in the market can hinder the growth of the xanthan gum.

Opportunities:

• Increasing demand for organic products

Nowadays, Consumers around the globe are being more health conscious and they are more likely choosing the organic food products and raw materials. Additionally, the perception that biological and healthier products motivate consumers to purchase more organic products. Especially among the younger consumers, whose desires for healthy food options are increasing day by day. Likewise, the demand for organic xanthan gum has risen due to its numerous benefits. Moreover, the rising frequency of celiac disease and incidence of various allergies caused by gluten-based foods are factors supporting demand for organic and gluten-free xanthan gum.

Segment Overview

By Form

Based on usage form of xanthan gum, the global xanthan gum market has been segmented into dry and liquid. The dry segment has accounted for 71.59% in 2021, while the liquid segment is likely to register the highest CAGR of 4.91% during the review period

By Function

Based on Function, global Xanthan Gum has been segmented into Thickener, Stabilizer, Fat Replacer, Coating Material and Others. The thickener segment accounted for the largest market share of 30.98% in 2021, whereas the fat replacer segment is expected to witness the highest CAGR of 5.09%.

By Application

Based on the application, the global Xanthan Gum market has been segmented into Food & Beverages, Pharmaceuticals & Nutraceuticals, Personal Care, and Others. Food & Beverages recorded the largest market share of 65.24% and is expected to grow at a CAGR of 4.55%, whereas the personal care segment is expected to witness the highest growth rate of 5.35%.

Global Xanthan Gum Market Share, by Region, 2021 (%)

Sources: MRFR Analysis

Regional Analysis

By region, the Global Xanthan Gum Market has been divided into North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific accounted for the largest market share of 31.22% in 2021 and is expected to register the highest CAGR of 4.96% during the forecast period. Europe was the second-largest market with a share of 26.20% in 2021 and is projected to exhibit a CAGR of 4.57% during the review period.

Asia-Pacific

Asia-Pacific is one of the most lucrative destinations for the manufactures of xanthan gum. The region accounted for an 31.22% share of the xanthan gum market in 2021. It is projected to register the highest CAGR of 4.96% during the forecast period. The growth of the xanthan gum market is attributed to several factors. One of the major driving factors for the growth of the market is increasing consumer inclination towards the ready to eat food products across the Asia-Pacific region. Moreover, xanthan gum finds massive application in the pharmaceuticals & nutraceuticals industry. The consumption of the nutraceuticals is exceptionally high in the Chinese & Japanese market owing to rise in population of the older age bracket. However, India is projected to witness the highest CAGR during the forecast period owing to the various factors. Increasing production facilities by the several key food & beverages companies in India is likely to upsurge the stimulate the growth of the India market

Europe

Europe accounted for a market share of 26.20% of the xanthan gum market in 2021. The regional market is likely to register a CAGR of 4.57% during the forecast period. The growth of the European xanthan gum market can be attributed to several factors. One of the major factors for the rising growth of the regional market is the significant usage in the food & beverage industry. The growth of the bakery industry is considered as one of the major factors for the rising growth of the xanthan gum market in the European region. On the other hand, the usage of the xanthan gum in the industrial sectors also one of the major factors for the substantial growth. UK & Germany are the major countries in European countries in terms of consumption. However, the market in France is projected to register the highest CAGR during the forecast period.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Solvay SA (Europe), International Flavours & Fragrances Inc (US), Archer Daniels Midland Company (US), and Jungbunzlauer Suisse Ag (Switzerland) dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.

Prominent players in the Global Xanthan Gum Market include Solvay SA (Europe), International Flavours & Fragrances Inc (US), Archer Daniels Midland Company (US), Cargill, Incorporated (US), CP Kelco (Georgia), Ingredion Incorporated (US), Fufeng Group Limited (China), Deosen Biochemical (Ordors) Limited (China), Jungbunzlauer Suisse Ag (Switzerland) and Vanderbilt Minerals, LLC (US).

Recent Developments

Few developments that occurred in recent times influencing the market growth of Xanthan Gum are listed below:

• In February 2021, International Flavors & Fragrances Inc has merged with DuPont’s wholly owned subsidiary, Nutrition & Biosciences Inc. Upon merging with N&B, the companies’ offering in Xanthan gum has widened and helped in strengthening its positions across various market.


• In August 2020, Deosen Biochemicals launched a new xanthan gum – Ziboxan® TS and the product is available in dry from soluble in hydrophilic organic solvents for gel formation specially formulated for personal care applications.

Scope of the Report

Global Xanthan Gum Market, by Source

• Dry


• Liquid

Global Xanthan Gum Market, By Function

• Thickener


• Stabilizer


• Fat Replacer


• Coating Material


• Others

Global Xanthan Gum Market, by Application

• Food & BeveragesIndustrial


• Pharmaceuticals & Nutraceuticals


• Personal Care


• Others

Global Xanthan Gum Market, by Region

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Intended Audience

• Food & Beverage Industries


• Personal Care manufacturers


• Pharmaceutical manufacturers


• Retailers and Wholesalers


• Investors & Government Institutions