Xanthan Gum Market surging demand with 4.7 % CAGR by 2028

Posted by Prabha Mahajan on September 28th, 2022

The scope of our recent study on the “Xanthan Gum Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Form (Dry and Liquid), by Application (Food and Beverages, Oil and Gas, Pharmaceuticals and Nutraceuticals, Personal Care, and Others),” includes the analysis of factors driving the market, estimation and forecast of revenues, market share analysis, and identification of significant market players and their key developments.

The xanthan gum market is projected to reach US$ 576.11 million by 2028 from US$ 827.57 million in 2020; it is expected to grow at a CAGR of 4.7% from 2021 to 2028. Xanthan gum is a popular food additive that is widely used as a thickening aglent or stabilizer. This natural polysaccharide is also used as an industrial biopolymer. It is one of the most adaptive elastic thickeners, and it works well in small quantities. Xanthan gum is highly soluble in hot and cold water, and it can absorb more water than its weight to form a gel. Aqueous solutions of xanthan are viscous at low polymer concentrations. Its unique advantages include greater viscosity at low concentrations; insensitivity to temperature, pH, and electrolyte fluctuations; and exhibition of pseudoplasticity. Xanthan gum is regarded as a non-hazardous ingredient for different brines, drilling, and fracturing fluids.

Xanthan gum is a polysaccharide used as an additive in products such as food and beverages, pharmaceuticals, personal care products, and others. It is synthetized by the bacteria Xanthomonas campestris through the fermentation process. When sugar is fermented, a fluid is produced, which is solidified by adding alcohol. After that, it is rinsed, pressed, and dried. It is generally available in two forms—dry and liquid. Xanthan gum enhances the viscosity of fluids. It is used as a stabilizer and thickening agent in different types of food and beverages, including bakery and confectionary products, beverages, sauces and dressings, dairy products, and ice creams. It is also used as a stabilizer and rheology modifier in personal care and pharmaceutical products. Moreover, it is used as a rheology modifier in the process of oil drilling and extraction. Xanthan gum also has various applications in the paints and pigments industries.

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Xanthan gum is a common food additive that is used as a gluten alternative. Gluten is a protein that gives wheat flour its structure. Xanthan gum is typically used with non-gluten-containing flour to produce gluten-free goods with good structure and texture. FDA and USDA regulatory standards limiting the amount of gluten in food products. For instance, according to the FDA's gluten-free food labeling rule, lower than 20 parts per million is the permissible limit of gluten in products labeled "gluten-free," "no gluten," "free of gluten," or "without gluten." Moreover, xanthan gum is a vital gluten-free baking ingredient that helps baked goods hold posture and develop elasticity. Among its common applications, including cakes and pancakes, cookies, muffins, quick bread, pizza dough, bread, and salad dressings, xanthan gum is often utilized in the making of pizza dough. The nutritional value of xanthan gum, which includes carbs and fiber, also increases its acceptability.  In addition, xanthan gum is used in gluten-free products to improve the texture and shelf life. Like gluten, it also keeps baked goods moist and soft. However, gluten, which accounts for ~75% wheat, barley, and rye protein; it cause significant intestine damage and raise the risk of cardiovascular events in celiac disease patients. Hence, the growing prevalence of gluten-intolerance issues and other health-related problems caused due to gluten are highlighting the demand for gluten-free products.

Some of the major key players operating in the global xanthan gum marketinclude ADM, Cargill Inc, CP Kelco, Deosen, Fufeng Group, Hebei Xinhe Biochemical Co. Ltd., Ingredion Inc., Unionchem, SNP, Inc., and Solvay among others. The major players are striving towards expanding their customer base and expanding their presence globally so as to acquire better market position.

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Based on form, the xanthan gum market is segmented into dry and liquid. In 2020, the dry segment accounted for a larger market share. Dry xanthan gum disperses fast and forms a viscous, stable solution, when mixed with any liquid. As a result, it is an excellent thickening, suspending, and stabilizing ingredient. Moreover, xanthan gum powders are used in liquids to improve their viscosity, hydration, and clarity. Xanthan gum in dry form is soluble in, both, hot and cold liquids.

The xanthan gum market is segmented into five main regions— North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Asia Pacific held the largest share of the market in 2020. The dominance of this region in the global market is primarily attributed to the presence of large-scale production facilities, resulting in high domestic consumption of xanthan gum. An increase in domestic demand for food and beverages, particularly convenience foods, and the growth of countries such as India and China owing to urbanization, rapid economic development, and lifestyle changes would further fuel demand for xanthan gum in the region in the coming years.

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