Xanthan Gum Market - Forecast(2023 - 2028)

Overview

Xanthan Gum Market size is forecast to reach $1,741.03 million by 2025, after growing at a CAGR of 6.2% during 2020-2025. Due to its growing use in the food & beverage industry as a thickening agent and stabilizer to prevent separation of ingredients, the xanthan gum market rises during the forecast period.  

Xanthan gum derives its name from the species of bacteria used during the fermentation process, Xanthomonas campestris. This is the same bacterium responsible for causing black rot to form on broccoli, cauliflower, and other leafy vegetables. Xanthan Gum Slurry is a high-quality Xanthan Gum suspension in a mineral oil and is used as a viscosifier in hydraulic fracturing, coiled tubing and drilling operations, and is the preferred viscosifier due to its rapid hydration and the fact that potentially harmful fish-eyes are not formed by using slurry. Due to its non-Newtonian rheological behaviour, relative insensitivity to salinity and temperature as opposed to other traditional synthetic polymers, xanthan gum has been used in Enhanced Oil Recovery (EOR) methods for mobility regulation. 

Report Coverage

The report: “Xanthan Gum Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Xanthan Gum Industry.

Key Takeaways

• 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 consolidate 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.

Function - Segment Analysis

Thickening agent held the largest share in the Xanthan Gum market in 2019. The growing product usage in food manufacturing industry in order to achieve the desired viscosity is anticipated to boost thickening agent market. 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.

Application - Segment Analysis

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 2020 to 2025. 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. 

Apart from food and beverages Xanthan gum is used in mineral oil and as a viscosifier in hydraulic fracturing. Xanthan gum is the preferred viscosifier due to its rapid hydration and the fact that by using slurry potentially damaging fish-eyes are not formed during hydraulic fracturing. The natural polysaccharide and an important industrial biopolymer properties has attracted considerable attention as an oil recovery agent.

Geography - Segment Analysis

APAC dominated the Xanthan Gum market with a share of more than 41%, followed by North America and Europe. The growth of xanthan gum can be attributed to the increasing demand for bakery and confectionary products from countries such as China, India, Malaysia, and Vietnam. Global baking industry are shifting from developed regions to new global regions According to Bread, Bakery and Cakes 2018 annual review Asia Pacific and Africa will dominate the global bakery market in terms of growth during forecast period. According to Indian Bakers Federation (I.B.F.), the baking industry is seeing 7% to 8% growth in Asia as a whole and as much as 12% to 13% growth in India in 2018. Furthermore, around 7 billion packs of biscuits are sold annually in India which is the highest-selling product in India, followed by sliced bread, cupcakes, pastries and brownies. 

Drivers – Xanthan Gum Market

·         Regulatory support towards

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 favoring 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.

Challenges – Xanthan Gum Market

·         Alternative of Xanthan Gum  

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 has 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.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Xanthan Gum market. In 2019, the market of Xanthan Gum has been consolidated by the top five players accounting for xx% of the share. Major players in the Xanthan Gum Market are Deosen Biochemical, CP Kelco, DuPont, Fufeng Group, ADM, Meihua Holdings, Cargill, Pfizer, and Jungbunzlauer, among others.

Acquisitions/Technology Launches

• In March 2017, J.M Huber Corporation acquired xanthan gum supplier CP Kelco. The acquisition will boost production capacity of the xanthan gum by about 15 to 20 percent.