Xanthan gum market

Xanthan Gum Market, by Form (Dry and Liquid), by Function (Thickeners, Stabilizers, Fat replacers, Coating material, Gelling agents, and Others), by End-Use Industry (Food & Beverages (Meat and poultry, Bakery, Confectionery), Pharmaceuticals, Oil & Gas, Agrochemicals, Paints & coatings, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2028

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May 2022
CMI929
150 Pages
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Food Ingredients

Summary

Xanthan gum is a polysaccharide, commonly used as a food additive, stabilizer, and thickening agent. Xanthan gum, as a stabilizing agent, prevents the separation of food ingredients and is majorly used in gluten-free bakery products. Xanthan gum is highly soluble in cold as well as hot water and is capable of absorbing more water above its weight, thus forming a gel. These solutions are associated with various properties such as pseudo-plasticity, high viscosity, and inertness towards a wide range of pH, temperature, and electrolyte variations.

The global xanthan gum market is expected to surpass US$ 570.7 million by the end of 2028 in terms of revenue, exhibiting a CAGR of 3.38% during the forecast period (2021 to 2028).

Drivers

Xanthan being a non-hazardous additive, which is associated with various nutritional characteristics, along with high carbohydrates and fiber content, has its wide application in the food and beverages industry. Increasing demand for food and beverages is in turn, driving growth of the global xanthan gum market. Furthermore, growing demand for gluten free food products, growing inclination towards convenience food, and the multi-functionality of xanthan gum are some of the other factors contributing to growth of the global xanthan gum market.

Xanthan gum is widely used in baked products, confectionery, sauces and dressings, meat and poultry, dairy products, and a variety of other foods. The strain of Xanthomonas campestris, a bacterium that causes a variety of plant diseases, which produces xanthan gum is non-pathogenic and non-toxic to animals and humans. As a result, it has overtaken other replacements as the most popular food ingredient.

Xanthan gum is used by bakery and confectionery producers for a variety of 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.

Among region, North America held the highest revenue market share of 37.4% in 2020 and is expected to be the dominant region during the forecast period. According to international Energy Agency, the main factors for the increasing dominance of North America in xanthan gum market is the growing oil & gas industry along with soaring demand for petroleum since 1850s in the U.S. Furthermore, according coherent market insights the U.S. held the largest market share for xanthan gum in North America and is one of the largest consumer of oil and gas in the world. Moreover, rising awareness about health benefits of xanthan gum is driving the growth of xanthan gum market in North America.

Figure 1. Global Xanthan Gum Market Revenue Share (%), By Region, 2020

Market Restraints

Availability of substitute products such guar gum coupled with the high cost of xanthan gum poses as major restraints for growth of the global xanthan gum market. Guar gum is a natural gum derived from guar seed. 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 globally.

Xanthan Gum Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 452.3 Mn
Historical Data for:	2017, 2018, and 2019	Forecast Period:	2021 to 2028
Forecast Period 2021 to 2028 CAGR:	3.38%	2028 Value Projection:	US$ 570.7 Mn
Geographies covered:	Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:	By Form: Dry, Liquid By Function: Thickeners, Stabilizers, Fat Replacers, Coating Material, Gelling Agents, Others By End-Use Industry: Food and Beverages (Meat and Poultry, Bakery, Confectionery), Pharmaceuticals, Oil and Gas, Agrochemicals, Paints and Coatings, Others
Companies covered:	CP Kelco, Cargill Inc., E. I. Du Pont De Nemours and Company, Fufeng Group Company Ltd., FMC BioPolymer, Archer Daniels Midland Company, Fuerst Day Lawson, Zoranoc Oilfield Chemical Co., Ltd, Ingredion Incorporated, and Solvay S.A
Growth Drivers:	Increasing demand for food and beverages Multiple application of the xanthan gum in the food & beverages, pharmaceuticals, oil and gas, agrochemical, and others
Restraints & Challenges:	Availability of substitute products such guar gum High cost of xanthan gum

Market Trends

Xanthan gum is a common food additive that is used as a substitute for gluten, which is the protein that gives wheat flour its structure and is generally used with non-gluten containing flour to make gluten-free. In 2020, Mayo Clinic, a non-profit American academic medical centre focused on integrated health care, education, and research, conducted a survey that revealed that all three groups of people prefer a gluten-free diet. The first group includes people who have celiac disease, the second group includes people who haven't been diagnosed with celiac disease, and the third group includes people who don't have celiac disease but avoid gluten.

Figure 2. Global Xanthan Gum Market Revenue Share (%), By End Use Industry, 2020

Among end-use industry, food and beverage segment held a major revenue share of 41.1% in 2020 and is expected to retain its dominance throughout the forecast period. Wide application of xanthan gum in gluten-free bakery products such as cakes and pancakes, cookies, salad dressings, quick breads, and muffins, is one of the major factors driving the demand for xanthan gum in the food and beverage industry, in turn driving the market growth.

Global Xanthan Gum Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic has drastically affected the overall operations of industries across different regions, owing to lockdown imposed for prolonged periods, restrictions enforced on international trades, shutdown of manufacturing units, travel bans that led to supply chain disintegration, shortage of raw materials, and so on. Xanthan gum is used in other industries as well food. The shutdown of food & beverages plants in leading regions such as Asia Pacific, North America, and Europe has affected the global supply chain and negatively impacted the manufacturing, delivery schedules, and sales of various food & beverage ingredients.

Competitive Section

Major players operating in the global xanthan gum market include CP Kelco, Cargill Inc., E. I. Du Pont De Nemours and Company, Fufeng Group Company Ltd., FMC BioPolymer, Archer Daniels Midland Company, Fuerst Day Lawson, Zoranoc Oilfield Chemical Co., Ltd, Ingredion Incorporated, and Solvay S.A.

Table of Content

Table of Contents

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Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What will be the global xanthan gum market size in 2028?

The global xanthan gum market is expected to surpass US$ 570.7 million by 2028 and is expected to exhibit a CAGR of 3.38% between 2021 and 2028.

What are the major factors that are expected to drive growth of the market during the forecast period?

Growing oil and gas industry worldwide are some of the major factors that are expected to drive growth of the market over the forecast period.

What are the trends in the market?

Increased consumption of gluten-free products is one of the key trend in the market.

What are the key factors hampering growth of the market?

Availability of substitute products such guar gum coupled with the high cost of xanthan gum are some of the major factors that are expected to hamper growth of the market over the forecast period.

Which are the key players in the market?

Major players operating in the market include CP Kelco, Cargill Inc., E. I. Du Pont De Nemours and Company, Fufeng Group Company Ltd., FMC BioPolymer, Archer Daniels Midland Company, Fuerst Day Lawson, Zoranoc Oilfield Chemical Co., Ltd, Ingredion Incorporated, and Solvay S.A.

What is the current size of the market?

The market is estimated to be valued at US$ 452.3 million in terms of revenue, in 2021.