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Overview
Xanthan Market size is forecast to
reach $1,240.57 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 market rises during the forecast
period.
Report Coverage
The report: “Xanthan Market – Forecast (2020-2025)”, by IndustryARC, covers an
in-depth analysis of the following segments of the Xanthan Industry.
Key Takeaways
- Asia-Pacific dominates the Xanthan market owing to increasing demand for food products consisting Xanthan especially bakery products as it is an effective thickening agent .
- Xanthan 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 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
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. Xanthan gum is the primary food additive 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 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
further increases its acceptability, as it contains carbohydrates and fiber.
Geography - Segment Analysis
APAC dominated the Xanthan market with a share of more
than 43%, followed by North America and Europe. The growth of Xanthan 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 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 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 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 is an alternative to gluten, its market will have a
tremendous growth during forecasted period.
Challenges – Xanthan Market
·
Alternative
of Xanthan
Xanthan is an ingredient used in many
gluten-free recipes that includes, breads, cakes, and cookies. The high cost
and baked goods made with Xanthan can have gummy texture and slight aftertaste
that may not appeal to few consumers. These shortcomings of Xanthan 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 market. Furthermore, Agar agar, and chia seeds are
other alternatives of Xanthan which can restrain its market.
Market Landscape
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Xanthan market. In 2019,
the market of Xanthan has been consolidated by the top five players accounting
for xx% of the share. Major players in the Xanthan 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 supplier CP Kelco. The acquisition will boost production capacity of the Xanthan by about 15 to 20 percent.