Xanthan Gum Market Analysis

Global Xanthan Gum Market Overview

Xanthan Gum Market Size was prized at USD 0.6 billion in 2022. The xanthan gum industry is projected to grow from USD 0.62 Billion in 2023 to USD 0.82 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.73% during the forecast period (2023 - 2030). Thickeners, stabilizers, fat substitutes, coating materials, gelling agents, fertilizers, detergents, adhesives, sealants, and other ingredients used in food, beverage, pharmaceutical, and personal care goods are just a few of the many purposes the industry serves. Also, tight oil and shale gas availability has expanded thanks to hydraulic fracturing and other technological breakthroughs, which are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Xanthan Gum Market Trends

• Rising trend of veganism to boost the market growth

The utilization of vegan products in the food sector has accelerated due to the rapidly rising vegan population on a scale. Vegans make up 1.1% of the world's population. Hence, there will be roughly 88 million vegans in the globe as a whole in 2023. This element directly influences the value growth of the xanthan gum market, the rising vegan population, and other macro drivers, including the increased demand for convenience and ready-to-eat products and a steady increase in GDP per capita. Therefore, the growing trend of veganism has enhanced the market for xanthan gum CAGR in recent years.

The oil industry's rapid expansion is probably good news for the xanthan gum business. In this business, xanthan gum is frequently employed as an economical and environmentally friendly oil drilling fluid. It strongly resists alkalis, acids, salts, and high temperatures. Due to its suspending qualities, xanthan gum can improve mud permeability and lower drilling pressure loss. In addition, well wall stabilization and decreased reservoir damage come with increased drilling efficiency. Moreover, due to its superior rheological qualities, xanthan gum is chosen over CMC, polyacrylamide, modified starch, and other polysaccharides like guar gum in the development of oilfields. Thus the rapid expansion of the oil industry is another factor driving the growth of the xanthan gum market revenue.

Figure 1: Daily demand for crude oil in a million barrels worldwide from 2006 to 2020, with a forecast until 2026

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Segment Insights

Xanthan Gum Type Insights

The xanthan gum market segmentation, based on fusion type, includes dry and liquid. In 2020, the dry market category held a greater market share with respect to the xanthan gum industry revenue. When combined with any liquid, dry xanthan gum quickly disperses and produces a viscous, stable solution. Dry xanthan gum may dissolve in both warm and cool solutions. However, the liquid xanthan witnessed significant growth. Xanthan gum works wonders to stabilize emulsions, suspend solids in liquids, and prevent purees from separating. Hence, rising applications of liquid xanthan gum for xanthan gum positively impact the market growth.

Xanthan Gum Function Insights

The xanthan gum market data has been bifurcated by function into thickener, stabilizer, fat replacer, coating material, and others. In 2021, the category-selling thickeners held the biggest market share. The projection year is likely to accelerate the segment's growth due to the increased demand for edible thickening agents in various culinary products, including sauce, pudding, soup, wheat flour, and sweets.

Figure 2: Xanthan Gum Market, by Function, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The second fastest-growing segment in the xanthan gum industry is the fat replacer. One of the main drivers of sector expansion is the increased demand for low-fat and fat-free food products due to shifting dietary habits, growing health concerns, and people's increasing willingness to accept fat alternatives.

Xanthan Gum Application Insights

Based on application, the xanthan gum market segmentation has been segmented into food & beverages, pharmaceuticals & nutraceuticals, personal care, and others. The sector for food and beverages is anticipated to develop at the greatest CAGR. A further factor driving the need for xanthan gum as a gluten substitute is the increase in consumer demand for gluten-free goods.

April 2022: Barnet Products is a firm founded in 1987 dedicated to discovering, creating, and delivering to their customers fashionable new concepts, ingredients, and systems. OxiBlock-SFTM, an antioxidant-rich compound made from recycled olives and ethically sourced kale sprouts, was introduced by the firm. One of the essential constituents is xantham gum. This launch has further broadened the growth opportunity for the xanthan gum industry.

Additionally, in 2022, the pharmaceutical sector showed the fastest growth rate. Xanthan gum is frequently used in various pharmaceutical and personal care applications, including lotions, bath products, makeup, skin & hair care, and dental care products.

Xanthan Gum Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Xanthan Gum market accounted for USD 0.27 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Drilling operations grew in North America as a result of the rising demand for petroleum and petroleum-based goods, which is likely to strengthen the oil & gas sector and, in turn, drive the market's expansion. The EIA predicted an increase in petroleum production to 12.34 million bpd in 2023. In comparison, a record 12.29 million bpd was achieved in 2019. The anticipated consumption of petroleum and other liquid fuels will increase from the prior estimate of 20.48 million bpd to 20.51 million bpd.

Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: XANTHAN GUM MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s xanthan gum market accounts for the second-largest market share. One of the key drivers of the xanthan gum rising growth in the European region is the bakery sector's expansion. The market is expanding due to growing customer demand for bread baked by hand and on a smaller scale. About half of the people in the UK consume bread daily, and about 2.5 million frequently purchase it from their neighborhood bakeries, making these establishments essential to the nation's economy. Further, the German market for xanthan gum held the largest market share, and the UK xanthan gum industry was the fastest-growing market in the European region.

The Asia-Pacific Xanthan Gum Market is predicted to grow at the fastest CAGR from 2022 to 2030. Due to its increased reliance on the food and beverage industry, particularly the bakery industries, the Asia Pacific area accounts for the highest portion. Because of an increase in the population of seniors, the Chinese and Japanese markets have unusually high nutraceutical consumption. Almost 59 percent of respondents in mainland China indicated that they take dietary supplements in a Rakuten Insight study performed in March 2022. Moreover, the China market for xanthan gum held the largest market share, and the Indian xanthan gum industry was the fastest-growing market in the Asia-Pacific region.

Xanthan Gum Competitive Insights & Key Market Players

Major market players are investing huge amounts of money in R&D to increase the range of products they offer, which will propel the xanthan gum market to further expansion. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their footprint. To grow and thrive in a more cutthroat and competitive market climate, xanthan gum industry competitors must provide affordable goods.

Manufacturing locally to cut operational costs is one of the main business methods manufacturers use in the xanthan gum industry to benefit customers and develop the market sector. The xanthan gum industry has recently given medicine some of the most important advantages. Xanthan gum market major players, including Hebei Xinhe Biochemical Co. Ltd., Archer Daniels Midland Company, CP Kelco, Cargill, and others, aim to boost the market demand by funding R&D projects.

Hello is a privately held independent consumer goods company headquartered in Montclair, New Jersey. Hello Goods LLC sells personal care items. Hello is a modest firm that is working hard to accomplish big, friendly things for lips all around the world. The company sells toothpaste, mouthwash, toothbrushes, floss, and other such items. In February 2022, Hello Products LLC, a division of Colgate-Palmolive, introduced the Really Friendly collection, which contains four types of toothpaste and mouthwash. The various types of toothpaste are manufactured with Xanthum Gum, titanium dioxide, Cocamidopropyl betaine, and other substances to address whitening, sensitivity, and fluoride.

Also, Deosen has been recognized as the leading quality Xanthan gum maker for over 26 years. Products include pharmaceutical grade, food grade, pet food grade products, and special grade items such as rapid dispersible, low dust, and clear products. Deosen is a manufacturer as well as a solution provider. In August 2020, Deosen Biochemicals introduced Ziboxan® TS, a novel xanthan gum soluble in hydrophilic organic solvents for gel formation, specially developed for personal care applications.

Key Companies in the xanthan gum market include

• Cargill


• Solvay S.A.


• Deosen


• Fufeng Group


• Ingredion


• Hebei Xinhe Biochemical Co. Ltd.


• CP Kelco


• Meihua Holdings Group Co. Ltd.


• Unionchem


• Archer Daniels Midland Company

Xanthan Gum Industry Developments

November 2021: Fufeng Group Ltd., a renowned xanthan gum maker, has chosen a 370-acre (150-hectare) property in Grand Forks' agri-business park for its first manufacturing facility in the United States. The factory will initially require 25 million bushels of corn per year.

October 2021: Tilley Co., an SK Capital Partners portfolio company, has acquired Ingredient Solutions, Inc. Carrageenan, Nalgin sodium alginates, pectin, locust bean gum, tara gum, gellan gum, agar-agar, xanthan gum, and konjac gum are all available from Ingredient Solutions. To fulfill the particular needs of customers in food, beverage, and personal care, the firm delivers a leading hydrocolloid offering and best-in-class product application know-how.

Xanthan Gum Market Segmentation

Xanthan Gum Form Outlook

• Dry


• Liquid

Xanthan Gum Function Outlook

• Thickener


• Stabilizer


• Fat Replacer


• Coating Materials


• Others

Xanthan Gum Application Outlook

• Food & Beverages


• Personal Care


• Pharmaceuticals & Nutraceuticals


• Others

Xanthan Gum Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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