According to Future Market Insights (FMI), the Xanthan Gum Market sales are anticipated to be worth USD 925.0 million in 2023. It is estimated to reach a market value of USD 1,754.8 million by 2033, growing at a healthy 6.6% CAGR.
The increasing trend of plant-based diets influenced manufacturers to incorporate this ingredient as a binding agent in meat, egg, and cheese substitutes.
The food and beverage industry is the leading consumer of xanthan gum. It is used as a thickener and stabilizer in a variety of products such as sauces, dressings, beverages, baked goods, and dairy products. Xanthan gum adds viscosity, texture, and stability to food formulations, improving quality and shelf life.
Xanthan gum is also used in the pharmaceutical and personal care industries. It is used in pharmaceutical formulations as a suspending agent, emulsion stabilizer, and controlled release matrix. In personal care products, it acts as a thickener, emulsion stabilizer.
Manufacturers in the pharmaceutical industry are utilizing it to optimize drug delivery systems and cater to the people facing unique health-related problems.
Similarly, modern medicine is also advancing and moving more towards personalized therapies which is expected to result in the increased demand for xanthan gum in the pharmaceutical industry.
Xanthan gum is used as a drilling fluid additive in the oil and gas industry. It aids the drilling process by improving the viscosity and rheological properties of drilling fluids, increasing hole stability, and reducing fluid loss.
FDA recently approved xanthan gum for use as a food ingredient with no quantity restrictions. Under certain restrictions, it has also been permitted by the FDA for use in the preparations of cheeses and cheese-related products.
Furthermore, continuous research is being funded by players to stay competitive. Fermentation technology-enabled development of various strains of xanthomonas campestris has encouraged manufacturers to produce xanthan gum on a large scale and supply across several sectors.
| Attributes | Key Insights |
|---|---|
| Xanthan Gum Market Estimated Size (2023E) | USD 925.0 million |
| Projected Market Value (2033F) | USD 1,754.8 million |
| Value-based CAGR (2023 to 2033) | 6.6% |
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| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 3.5% |
| Jul to Dec (H2), 2022 Projected (P) | 4.9% |
| Jan to Jun (H1), 2023 Projected (P) | 6.5% |
| Jul to Dec (H2), 2021 (A) | 4.1% |
| Jan to Jun (H1),2022 Outlook (O) | 3.9% |
| Jul to Dec (H2), 2022 Outlook (O) | 5.2% |
| Jan to Jun (H1),2022 Projected (P) | 4.2% |
| BPS Change: H1,2022 (O) to H1,2022 (P) | 30 |
| BPS Change: H2, 2022 (O) to H2, 2022 (P) | -30 |
| BPS Change: H1,2022 (O) to H1,2021 (A) | 37 |
| BPS Change: H2, 2022 (O) to H2, 2022 (A) | 107 |
Key Trends Listed by Future Market Insights (FMI):
Increasing consumer awareness regarding organic and GMO-free products has escalated the growth of the xanthan gum market globally.
According to Future Market Insights (FMI), the market is expected to surge at a CAGR of 5.1% from 2018 to 2022. Further, it is expected to rise at a CAGR of 6.6% during the forecast period 2023 to 2033.
The growth of the xanthan gum market is primarily driven by the increasing demand for convenience foods, processed foods, and functional food products. The rising awareness about gluten-free and natural food ingredients also contributes to market growth. Besides, the expanding applications of xanthan gum in other sectors, such as pharmaceuticals and personal care, further boosts market demand.
The xanthan gum market is geographically diverse, with major production and consumption hubs located in regions like North America, Europe, Asia Pacific, and Latin America. The United States is one of the leading producers and consumers of xanthan gum, followed by Europe and Asia Pacific.
One of the reasons that have played a vital role in the development of the xanthan gum market is the consistent advancements in extraction technology to achieve high-quality ingredients.
Manufacturers have invested hugely to carry out research and develop new fermentation processes to improve efficiency and reduce overall production costs.
Furthermore, established players are focusing on employing technology to use alternative feedstock sources such as sugarcane juice, millet, and cassava flour. This reduces the environmental impact and establishes a balance between ecology and processing.
These initiatives have allowed creating of synergies between existing biotechnology, agrochemical, and agribusiness resulting in driving innovative solutions while ensuring sustainable developments.
Principal Consultant
| Region | North America |
|---|---|
| Country | The United States |
| CAGR | 6.7% |
| Market Value (2033) | USD 424.3 million |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR | 6.1% |
| Market Value (2033) | USD 171.9 million |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR | 8.7% |
| Market Value (2033) | USD 52.2 million |
| Region | Europe |
|---|---|
| Country | Germany |
| CAGR | 2.6% |
| Market Value (2033) | USD 72.5 million |
| Region | Europe |
|---|---|
| Country | The United Kingdom |
| CAGR | 3.6% |
| Market Value (2033) | USD 71.5 million |
Presence of Established Players Helping Market Growth in The United States
According to Future Market Insights (FMI), Xanthan gum in the United States is projected to surge at 6.7% CAGR, to be valued at USD 424.3 million by the end of 2033.
The United States has the widespead availability of raw materials which is required for the extraction of xanthan gum. These raw materials are generally produced locally without having a dependency on the import.
Besides this, key players like Archer-Daniels-Midland Company (ADM), Cargill Inc., and E.I. Numerous Dupont are operating in the United States holding established production facilities that are solely responsible for the growth of the market in the country.
These companies understand growing consumer concerns and strategize accordingly to cater to these concerns.
Increasing Infrastructure and Financial Assistance to Push Growth of Market
According to FMI, xanthan gum in China is anticipated to grow at a healthy CAGR of 6.1%, to be valued at USD 171.9 million by 2033.
China is emerging as a prominent market for xanthan gum as the players present in China are following the strategy of expansion by merging or acquiring local or international businesses.
This strategy is helping players to avail the benefits of an acquired company such as a production facility and an established loyal consumer base.
Furthermore, the Chinese government is also providing financial assistance to local players. These efforts are encouraging local businesses in China to enter new markets with novel product offerings.
Growing Food and Pharmaceutical Sectors in India to Positively Impact the Market
Xanthan gum in India is expected to exhibit a growth rate of 6.6% CAGR to achieve a market size of USD 56.4 million by the end of the forecast period. The rapid expansion of the food and beverage industry in India to cater to different needs of consumers is the foremost reason behind the growth of the xanthan gum market.
The growing working population has resulted in increased demand for processed and convenience foods, which has encouraged manufacturers to innovate and offer novel products. These innovations have benefited the xanthan gum market as manufacturers have started incorporating xanthan gum in various processed foods due to its thickening property.
Besides this, there are growing health-conscious demographics in India that externally provide the required nutrition to the body with the help of nutritional supplements.
Hence, the demand for xanthan gum has increased in the pharmaceutical industry as it is used in the manufacturing of tablets and capsules.
Meat Substitute Market:
| Attributes | Meat Substitute Market |
|---|---|
| CAGR (2023 to 2033) | 5.0% |
| Market Value (2033) | USD 67.9 billion |
| Growth Factor | Increasing awareness of clean eating and a growing preference for plant-based food items are driving the expansion of the meat substitute market. |
| Opportunity | gym-goers who rely on protein to stay healthy presenting an opportunity for manufacturers to add nutritional qualities to draw the attention of health-conscious consumers. |
| Key Trends | The increasing trend of limiting animal protein from the diet as there is a rise in the number of vegans and flexitarians is predicted to boost market expansion. |
Egg Substitute Market:
| Attributes | Egg Substitute Market |
|---|---|
| CAGR (2023 to 2033) | 8.0% |
| Market Value (2033) | USD 2,472.6 million |
| Growth Factor | Rising consumer awareness of healthy eating habits, as well as changing lifestyles, are predicted to drive egg substitute market sales. |
| Opportunity | Global acceptance of veganism and rising concern over animal welfare allow catering to these demographics with novel products. |
| Key Trends | Growing emphasis on functional benefits provided by egg substitutes similar to traditional eggs helps companies to differentiate in the market. |
Gluten-free products market:
| Attributes | Gluten-free products market |
|---|---|
| CAGR (2023 to 2033) | 7.0% |
| Market Value (2033) | USD 11,191.8 million |
| Growth Factor | Increased awareness of celiac disease and the adoption of certain dietary practices are driving the market as consumers’ preference for gluten-free processed meals has increased. |
| Opportunity | The availability of gluten-free products in mainstream retail outlets and the growing awareness about gluten-free diets have also contributed to the growth of this market. |
| Key Trends | Consumers are becoming more health-conscious and opting for gluten-free products as they perceive them to be healthier and better for weight management. |
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Long Shelf Life and Ease of Handling Driving High Sales
The powdered form of xanthan gum is estimated to hold a global market share of 84.2% in 2023, and is projected to register robust growth during the forecast period to capture a total market value of USD 202.8 million in 2033.
Xanthan gum in powdered form is in more demand owing to its benefits such as being easy to store, easy to handle, and easy to transport. Manufacturers often process xanthan gum in powder form for export or keep it stored for longer intervals of time.
All these attributes associated with powdered xanthan gum is making it an ideal option to use in several products such as medicines and food.
On the other hand, sales of the gel form are primarily driven by its thicker and viscous consistency which enables its use in personal care and cleaning products. Though, it is a little bit difficult to handle and requires advanced technology during formulation.
Properties Such as Thickening and Stabilizing Making It an Appealing Option for Food
As per FMI analysis, among all the end-use segments, the food segment is showing leading growth during the forecast period. It is estimated to surge with a leading CAGR of 6.4% to reach a market value of USD 1,120.0 million in 2033.
The food and beverage sector is growing at a rapid pace due to which manufacturers require ingredients that could be used to deliver novel products. Xanthan gum possesses several qualities that make it an ideal ingredient to be used in food applications.
Firstly, it has thickening and stabilizing property which is used to provide texture to drinks, sauces, and dressings. Secondly, it enhances taste by creating a smooth and creamy consistency that improves flavor perception.
Xanthan gums possess both pseudoplastic and thixotropic properties which means that it maintains the desired viscosity of fluid under sheer pressure and reverts to their original state once the stress is released.
This property of xanthan gum helps to prevent sedimentation in fruit drinks. All these factors are responsible for the increasing use of xanthan gum in the food and beverage industry.
Leading players in the global xanthan market are investing in research and development to diversify usage in a variety of products. Aside from that, manufacturers are also engaging in mergers & acquisitions along with collaborations as a strategy to gain a competitive advantage in the industry.
For instance:
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 925.0 million |
| Market Forecast Value in 2033 | USD 1,754.8 million |
| Global Growth Rate | 6.6 % CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Volume (MT) and Value (USD million) |
| Key Regions Covered | Europe; Latin America; North America; South Asia; East Asia; Oceania; and Middle East and Africa |
| Key Countries Covered | The United States, Mexico, Canada, Chile, Brazil, Peru, Argentina, Italy, France, Spain, Germany, the United Kingdom, Netherlands, Belgium, Russia, Nordic, Poland, South Korea, China, Japan, India, Thailand, Singapore, Malaysia, Australia, GCC Countries, Indonesia, New Zealand, Central Africa, South Africa, and others |
| Key Market Segments Covered | Form, End-Use, and Regions |
| Key Companies Profiled | Cargill Inc; Fufeng Group; Gum Technology Corporation; CP Kelco; Meihua Group; ADM; Jungbunzlauer; E.I. Numerous DuPont; Hebei Xinhe Biochemical; Qingdao Unionchem Co. Ltd; Akshar International; Vasundhara Gums and Chemicals; Deosen Biochemical; Vanderbilt Minerals, LLC; Others |
The market is forecast to register a CAGR of 17.3% through 2033.
The rising demand for texture improvement in food is fueling the United States market.
The growing focus on a healthy lifestyle is upsurging Europe’s market.
The growing demand for plant-based diets among consumers has necessitated xanthan gum.
The United States held a maximum share of the global market in 2023.
1. Executive Summary
2. Market Overview
3. Market Dynamics
4. Value Chain Analysis
5. Global-Pricing Analysis
6. Global Market Size in Value (USD Million) and Volume (MT) Analysis 2018 to 2022 and Forecast, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form
7.1. Powder
7.2. Gel
8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-use
8.1. Food
8.1.1. Salad Dressing
8.1.2. Meat & Meat Products
8.1.3. Bakery Products
8.1.4. Beverages
8.1.5. Prepared/Ready-to-Eat Food
8.1.6. Frozen Food
8.1.7. Dairy Products
8.1.8. Confectionery
8.1.9. Snacks
8.2. Cosmetics & Personal Care
8.2.1. Skincare Products (Creams & Lotions)
8.2.2. Hair Care Products (Shampoo)
8.2.3. Oral Care Products
8.2.4. Toiletries
8.3. Animal Feed
8.3.1. Pet Food
8.3.2. Liquid Milk Replacers
8.3.3. Feed
8.4. Pharmaceuticals
8.5. Dietary Supplements
9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region
9.1. North America
9.2. Latin America
9.3. Europe
9.4. East Asia
9.5. South Asia
9.6. Oceania
9.7. Middle East & Africa
10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033
11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033
12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033
13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033
14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033
15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033
16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033
17. Country-level Market Analysis, 2023
18. Market Structure Analysis
19. Competition Analysis
19.1. Cargill Inc
19.2. Fufeng Group
19.3. Gum Technology Corporation
19.4. CP Kelco
19.5. Meihua Group
19.6. ADM
19.7. Jungbunzlauer
19.8. E.I. Numerous DuPont
19.9. Hebei Xinhe Biochemical
19.10. Qingdao Unionchem Co. Ltd
19.11. Akshar International
19.12. Vasundhara Gums and Chemicals
19.13. Deosen Biochemical
19.14. Vanderbilt Minerals, LLC
19.15. Other Players (On Additional Requests)
20. Assumptions and Acronyms Used
21. Research Methodology
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Xanthan Gum Market
