Xanthan Gum Market

[137 pages report] The xanthan gum market is estimated at USD 373.6 million in 2016; it is projected to reach USD 452.8 million by 2022, at a CAGR of 3.25% during the forecast period. Owing to its multi-functionality xanthan gum has wide applications and an increase in consumption of convenience foods are the factor driving the xanthan gum market.

The periodization considered for the study is as follows:

The objectives of the report

• To define, segment, and project the global market size for xanthan gum on the basis of application, form, function, and region
• To project the size of the market and its submarkets, in terms of value and volume, with respect to four regions (along with their respective key countries): North America, Europe, Asia-Pacific, and Rest of the World (RoW)
• To provide detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze micromarkets with respect to individual growth trends, future prospects, and their contribution to the total market
• To analyze the opportunities in the market for stakeholders and provide a competitive landscape of key market players
• To profile key players and comprehensively analyze their core competencies
• To analyze competitive developments such as expansions, investments, and agreements in the xanthan gum market
• To provide a detailed competitive landscape of this market, along with an analysis of the business and corporate strategies adopted by key players

Research Methodology:

• The key regions were identified, along with countries contributing the maximum share
• Secondary research was conducted to find the value of the xanthan gum for regions such as North America, Europe, Asia-Pacific, and RoW

The key players were identified through secondary sources such as the US Department of Agriculture (USDA), the United States Environmental Protection Agency (USEPA), FAOSTAT, Center for Disease Control and Prevention (CDC), World Health Organization (WHO), EUROPA, and FSSAI while their market share in respective regions was determined through both, primary and secondary research processes. The research methodology included the study of annual and financial reports of top market players, as well as interviews with industry experts (such as CEOs, VPs, directors, and marketing executives) for the key insights (both quantitative and qualitative) for the xanthan gum market.

To know about the assumptions considered for the study, download the pdf brochure

The various contributors involved in the value chain of the xanthan gum market include government organizations, R&D institutes, xanthan gum manufacturing companies, [such as Cargill (U.S.), Archer Daniels Midland Company (U.S.), Ingredion Incorporated (U.S.), E. I. du Pont de Nemours and Company (U.S.), and Jungbunzlauer Suisse AG (Switzerland)], & National Agricultural Research Organization, The Agricultural Research Organization, and Australian Institute of Agricultural Science and Technology.

Xanthan Gum Market Target Audience

The stakeholders for the report are as follows:

• Manufacturers/Suppliers
• Food & beverage manufacturers & processors
• Pharmaceutical manufacturers & processors
• Feed manufacturers
• Chemical industries
• Research & development laboratories
• Regulatory bodies
• Organizations such as the Food and Drug Administration (FDA), United States Department of Agriculture (USDA), European Food Safety Agency (EFSA), EUROPA, Codex Alimetarius, and Food Safety Australia and New Zealand (FSANZ)
• Government agencies
• Intermediary suppliers
• End users
• Food & beverage manufacturers/suppliers
• Pharmaceutical manufacturers
• Pet food manufacturers

Scope of the Xanthan Gum Market Report:

This research report categorizes the market based on application, function, form, and region.

Based on the application, the market has been segmented as follows:

• Food & beverages
• Oil & gas
• Pharmaceuticals & personal care
• Others

Based on the function, the market has been segmented as follows:

• Thickeners
• Stabilizers
• Gelling agents
• Fat replacers
• Coating materials
• Others

Based on the form, the market has been segmented as follows:

• Dry
• Liquid

Based on the region, the market has been segmented as follows:

• North America
• Europe
• Asia-Pacific
• RoW

Available Customization

With the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs. The following customization options are available for the report:

Product analysis

• ‘Product Matrix’ gives a detailed comparison of the product portfolio of each company

Company Information

• Detailed analysis and profiling of additional market players (up to five)

Emerging Application Analysis

• Regional and country-level market information for application and function segments

Multifunctionality of xanthan gum and its wide applications in confectionery products to stimulate its demand to cross the mark of USD 452.8 million by 2022

Xanthan gum is a polysaccharide produced by bacterial fermentation using nutrient sources. It is a natural hydrocolloid that can be used as a stabilizer, thickening agent, or fat replacer in a wide variety of food & beverages. It also helps to reduce water mobility and provides enhanced stability against salt, temperature, and shear industrial-based products such as oil & gas, horizontal drilling fluids, and under reaming. Moreover, it is also used in various chemical applications such as adhesives, oil & gas, lubricants, pharmaceuticals, personal care products, textiles, and ceramic glazes.

The global xanthan gum market size is projected to reach USD 452.8 million by 2022. Globally, the multifunctionality of xanthan gum has led to the large-scale adoption of xanthan gum in numerous applications. Changing lifestyles, rise in the consumption of convenience food, increased preference of natural food additives, and an increasing number of oil & gas drilling activities are some of the factors driving the growth of the market.

North America is the largest market for xanthan gum due to the growing demand from the food & beverage and oil & gas industries. The Asia Pacific region is the fastest-growing market for xanthan gum due to the rising consumption of natural and processed food & beverage products and growing health consciousness among consumers.

Guar gum usage as a substitute for xanthan gum acts as the major restraining factor for the market

Guar gum is a natural gum derived from guar seed. It is a high-molecular-weight polysaccharide consisting of mannose and galactose units and can hydrate in cold water to form highly viscous solutions. Guar gum is widely used in oil & gas well drilling, food & beverage, pharmaceutical, textile, and pet food industries due to its basic functions as a thickener, stabilizer, gelling agent, and emulsifier.

As its characteristics are similar to those of xanthan gum, guar gum is used as a substitute. The major difference in both ingredients is the variation in quantities for different food products. Xanthan gum can be used in low quantities as compared with xanthan gum. Apart from the variation in quantity, both ingredients perform the same function and are used in the same applications. Also, xanthan gum is generally more expensive in comparison to guar gum. Thus, it creates a potential threat to the xanthan gum market.

The growing domestic market for food & beverage food products in the emerging markets of Brazil, Russia, China, and India is expected to create a positive impact on the global food & beverage industry, which will fuel the demand of xanthan gum during the forecast period. Furthermore, the growing oil & gas fracking industry in the Middle Eastern countries, Brazil, and Argentina are projected to lead to moderate growth in the xanthan gum market.

The leading market players are also expanding their facilities in China, considering the potential demand in the market. The emerging markets for xanthan gum are growing, creating the immense potential for the processed food industry due to the changing lifestyles and increasing working population. Economic surges in India and China have led to the growth of the urban population with increased disposable incomes, creating a larger market for convenience and ready-to-eat food products. This is projected to lead to the growth of the market.

Market Dynamics

Leading xanthan gum manufacturers are investing in R&D and expanding their global presence to increase their market share.

Food & Beverages.

Xanthan gum is extensively used in bakery products, confectionery products, sauces & dressings, meat & poultry, dairy products, and many other food applications. The Xanthomonas campestris strain that is used to yield xanthan gum is non-pathogenic and non-toxic to animals and humans. Therefore, it has become the most preferred food ingredient compared to other substitutes.

Xanthan gum offers several advantages such as enhancing the texture of bakery products, stability, extending shelf life, and water retention, owing to which it is used by bakery and confectionery manufacturers for various food applications such as fruit cakes and ice creams.

Oil & Gas

Xanthan gum is widely used in oil recovery and oil drilling applications to serve multiple purposes such as the reduction in water mobility and providing enhanced stability against salt, temperature, and shear. The rising oil & gas drilling activities in the US, Argentina, Brazil, and the Middle Eastern countries are projected to drive the demand for xanthan gum in the next few years. Companies that are engaged in offering xanthan gum for oil & gas drilling applications, such as CP Kelco (US) under the brand names XANVIS, KELZAN, and Jungbunzlauer provide xanthan gum for oil drilling and ore mining and refining.

Pharmaceuticals & Personal Care Products

Xanthan gum is toxicologically safe and is frequently used in various pharmaceutical and personal care applications such as creams, bath products, makeup, skin & hair care, and oral care products. It acts as a binder, emulsion stabilizer, emulsifying surfactant, skin-conditioning agent, and viscosity-increasing agent in these products. It is characterized by the unique rheological properties and can be used as a suspending agent, an emulsion and foam stabilizer, a foam enhancer, and as a thickener in several personal care applications such as shampoos, liquid soaps, color cosmetics, creams & lotions, and toothpaste.

Others

Other applications of xanthan gum include pet food, cleansers, and textile printing. Its characteristics such as improved rheology of liquid formulations and stabilizing emulsions are driving the demand for xanthan gum in pet food, textile, and cleanser industries. A steady increase in demand for xanthan gum by cleanser applications was witnessed over the last few years owing to the compatibility of xanthan gum with acids and salts.

Key Questions

• What are the upcoming technologies, substitutes, and trends that will have a significant impact on the market in the future?
• Xanthan gum is getting traction in the market; how will this impact the food industry in the next five years?
• What will be the prominent revenue-generating pockets for the market in the next five years?
• Most suppliers have opted for expansions & acquisitions as the key strategies as seen from the recent developments. Where will it take the industry in the mid to long term?

The xanthan gum market is driven due to the multi-functionality of xanthan gum resulting in many application areas, increased consumption of convenience foods, and increased demand for gluten-free food products.

The market for xanthan gum, based on application, has been segmented into food & beverage, oil & gas, pharmaceuticals & personal care, others (pet food, cleansing, and textile). The market for food & beverage is projected to grow at the highest CAGR between 2016 and 2022. The market for food & beverage is driven due to the pseudoplastic and mouthfeel effects produced by xanthan gum. Moreover, increased demand for gluten-free products all over the world is fuelling the demand for xanthan gum as a replacement for gluten. It is widely used as an additive in gluten-free products owing to its better binding characteristics in comparison to other food additives such as guar gum and locust bean gum.

The xanthan gum market, based on function, has been segmented into thickeners, gelling agents, stabilizers, coating materials, fat replacers, and others (emulsifiers and foaming agents.). The market for fat replacers is projected to grow at the highest CAGR between 2016 and 2022. Xanthan gum is widely demanded in the aforementioned applications, and its demand as a gelling agent will continue to grow in the coming years owing to the various advantages offered by this product. For instance, xanthan gum prevents weeping in gels, forms a gel when combined with locust bean gel, and can form a mucus paste that resembles a gel.

The market for xanthan gum, based on form, has been segmented into dry and liquid. The market for dry is projected to grow at the highest CAGR between 2016 and 2022. Dry xanthan gum is used in food applications such as salad dressings, bakery products, and frozen food over the last few years. This increase in demand can be attributed to its major functions such as emulsion stabilizing, viscosity control, and thaw stability. Xanthan gum in its dry form is widely used by pharmaceutical and personal care companies for the manufacturing of products such as tablets and toothpaste, respectively.

The North American region is projected to be the largest market for xanthan gum, the U.S. being the fastest-growing market in the region, from 2016 to 2022. Asia-Pacific is also projected to be the fastest-growing market during the forecast period, due to the high population in this region consuming products that contain xanthan gum as their constituent. An increase in domestic demand for food & beverages, especially convenience foods and emerging countries such as India and China, owing to the growth in urbanization, rapid economic development, and change in lifestyles in these countries are the factors that will drive the demand for xanthan gum during the forecast period.

Guar gum used as a substitute for xanthan gum is one of the restraints for the market.

Cargill (U.S.) is one of the key players in the xanthan gum market and focuses on strengthening its product portfolio by continuously expanding its production capacity of xanthan gum. The company’s core competencies are expansion in potential markets, the strong product portfolio for xanthan gum, and global footprint for functional food products. Recently, the company set up a new R&D center in China, to produce new and innovative food products in new flavors for the consumers in China.