Increasing Demand Gluten-free Foods to Contribute to Expansion of Xanthan Gum Market
Since it was first produced in the latter half of the 20th century, xanthan gum has been widely used as a food additive around the world. It is generally considered an effective stabilizer, finds use in a variety of processed foods, and is also a preferred method of thickening liquids that are made especially for people who have difficulty swallowing. Xanthan gum has a myriad of applications in commercial kitchens, including suspension of solids, thickening egg substitutes, and as a binder to improve the uniformity of foods, among others. As a substitute and alternative, it is increasingly gaining traction in the F&B space, which is thereby catalyzing the growth of global xanthan gum market.
With gluten-free cooking and baking becoming increasingly popular in recent times, the popularity of xanthan gum is also growing. It is being used to provide elasticity to the foods it is used in, by acting as a binding agent for the flour to hold on to the moisture added to it. Gluten free products rely on substitutes and binding agents to imitate the texture, crumb-feel, and flexibility of conventional foods containing gluten. This widespread popularity of the product has led to the xanthan gum market having witnessed the sales of ~200 thousand tons in 2018, with the market expected to register an increase of ~5% volume CAGR over the forecast period (2019 - 2027).
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Significant Opportunities for Xanthan Gum Manufacturers in Oil & Gas Industry
The application of xanthan gum also extends to the oil & gas sector, where it has been becoming progressively popular in recent years. Due to its ability to suspend solid particles, reduce pressure loss during drilling, and reduce damage to the reservoir, xanthan gum is being used extensively as a mud additive in this industry. The benefits of xanthan gum that contribute to its popularity include its high efficiency factor, alongside its resilience to high temperatures, which makes it an ideal drilling fluid. It is also being employed to increase the viscosity of concrete used underwater to prevent washouts.
There has been an increase in the number of oil reserves in recent years, as oil & gas exploration and drilling activities continue to rise around the world. This has led to an increase in the demand for environmentally-friendly oil drilling mud additives, which have a minimal negative impact on the environment. Xanthan gum is gaining popularity, as it not only improves the efficiency of drilling, but is also is an eco-friendly alternative to polyacrylamide, modified starch, etc., which are currently being used in the market. It is also used in other end industries, such as pharmaceuticals, as a thickening agent; in personal care products, such as toothpaste, lotions, etc.; and in agrochemicals, paints, and printing inks; which is also contributing to the growth of the global xanthan gum market.
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APAC Remains a Lucrative Market for Xanthan Gum
The increased demand for xanthan gum from countries in APAC has driven the growth of the market in the region. In 2018, APAC accounted for over one-third of the global market share by revenue. This trend is set to remain the same in the coming years, with the xanthan gum market in APAC anticipated to increase at a volume CAGR of ~6% over the forecast period, making it a lucrative regional market. This can be attributed to the changing lifestyle habits of people, along with the growth of the food and beverage industry in the region, which is likely to boost the expansion of the xanthan gum market in APAC.
However, the regional markets of Europe and North America collectively held over half the global share by value, in 2018, which is a significant share of the global xanthan gum market. Further evolution of these regional markets is likely to be shaped by the presence of leading manufacturing companies in these regions.
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Xanthan Gum Market: Analysts’ Overview
According to analysts at Transparency Market Research who have complied this report on the xanthan gum market, the market is set to expand at the rate of ~6% during the forecast period. The landscape is considered to be fairly consolidated, with the top five players accounting for over three-fourth of the total market share in 2018.
The global demand for xanthan gum has been consistent from F&B and oil & gas industries in recent years, but is also gradually increasing from other end-use industries such as pharmaceuticals, personal care, and others. Players in the landscape should focus on providing products suited to applications in these industries to gain a competitive edge in the market space.
With the production of xanthan gum centred around APAC and North America, with smaller pockets globally, manufacturers in the market should focus on making inroads into emerging markets in Europe and Latin America, which are likely to offer lucrative geographical expansion prospects.
Xanthan Gum Market: Description
- Xanthan gum is a high molecular weight polysaccharide produced by pure-culture fermentation of a carbohydrate with a bacterium called Xanthomonas campestris. Polysaccharide secreted by the bacterium is harvested by precipitation with alcohol. It is usually manufactured as a sodium, potassium, or calcium salt that is readily soluble in water.
- Growth of the food & beverage industry and continuous demand for xanthan gum in crude oil reserves are driving the global xanthan gum market. Xanthan gum is primarily used in food & beverage applications. It is cheaper than guar gum, gum Arabic, and other hydrocolloids.
- The global xanthan gum market is projected to expand at a CAGR of ~6%, increasing from ~US$ 1 Bn in 2019 to ~US$ 1.5 Bn by 2027.
Key Growth Drivers of Xanthan Gum Market
- Xanthan gum is an ideal thickener, suspending agent, emulsifier, and molding agent used in the food industry. It is generally added in very low dosages, as it typically has high molecular weight and technological functionality.
- The demand for food hydrocolloids has been rising significantly since the last few years, due to rapid growth of the convenience foods & ready meals industry. The demand for xanthan gum is also rising, owing to increase in consumer awareness and demand for healthy foods. Xanthan gum is being used as a low-priced alternative for guar gum in a wide range of food applications. Xanthan gum is used in salad dressings, sauces, beverages, dairy products, syrups, toppings, baked goods, confectioneries, candies, breading, batter, and low-fat spreads.
- Rise in the awareness about healthy food among consumers and increasing demand for food and beverages across the globe, led by the growth in population, are factors driving the demand for xanthan gum in the food & beverage industry.
Major Challenges for Xanthan Gum Market
- On January 4, 2013, the Department of Commerce of the U.S. announced its affirmative preliminary determinations in the antidumping duty (AD) investigations of the imports of xanthan gum from Austria and China. Dumping occurs when a foreign company sells a product in the U.S. at less than its fair value. The Department of Commerce of the U.S. preliminarily determined that producers/exporters from Austria and China sold xanthan gum in the U.S. at dumping margins of 17.18% and 21.69% - 154.07%, respectively.
- The influx of low-quality xanthan gum from China into the U.S. at a lower price vis-à-vis the international market has resulted in the implementation of a strict anti-dumping policy for xanthan gum imports from China. Imposing anti-dumping on imports from China is restraining the xanthan gum market.
Lucrative Opportunities for Global Xanthan Gum Market
- Gluten is a protein that is most often associated with wheat and wheat flour. It can also be found in barley, rye, and other types of wheat, including triticale, spelt, einkorn, farina, kamut, farro, durum, bulgar, and semolina. Gluten is a protein derived from barley and wheat, which is typically used in bakery products as a binding agent to prevent them from crumbling.
- Xanthan gum is a common food additive that is used in sauces and dressings, ice creams and yogurts, and gluten-free baked goods. It is primarily used in gluten-free bakery products. Rise in the demand for gluten-free bakery products due to the increase in awareness about healthy food is creating lucrative opportunities for the xanthan gum market.
Asia Pacific to Dominate Xanthan Gum Market
- In terms of volume, Asia Pacific accounted for a leading share of the global xanthan gum market in 2018. The sheer size of the population and rise in disposable income of the people in Asia Pacific are key factors boosting the food & beverage industry in the region. The food & beverage industry in Asia Pacific is highly lucrative, owing to the large population and expansion of the middle class population in the region. This, in turn, is driving the xanthan gum market, as the consumption of xanthan gum boosts daily fiber intake, thereby improving the digestive system.
- Stringent regulations on the use of oilfield chemicals and the presence of a large number of proven crude oil refineries in the U.S. are likely to boost the xanthan gum market in the region in the near future. The U.S (10.96mb/d), Russia (10.53mb/d), and Saudi Arabia (10.32mb/d) were the top-three crude oil producing countries in 2018, thus offering significant opportunities to manufacturers in the xanthan gum market in these countries.
Food & Beverages Segment to Account for Prominent Share
- In terms of volume, the food & beverages segment held a prominent share of the global xanthan gum market in 2018. Xanthan gum is used in the manufacture of drinks and fruit juices. These beverages contain particles of fruit pulp. The usage of xanthan gum helps maintain suspension, providing a better appearance.
- The oil & gas segment is likely to offer significant opportunities to the global xanthan gum market during the forecast period. Xanthan gum is used in large quantities, usually to thicken drilling mud, in the oil industry.
Leading Players Actively Engage in Joint Ventures and R&D Activities
- The global xanthan gum market was consolidated in 2018, with the top five manufacturers -
- Fufeng Group Company Limited
- CP Kelco
- JUNGBUNZLAUER SUISSE AG
accounting for more than 80% share. Fufeng Group Company Limited manufactures food additives, bio-fermentation products, starch-based products, and biochemical products.
- On September 23, 2019, DuPont acquired the Ultrafiltration Membrane business of BASF, including inge GmbH. DuPont extended its water purification business and customers across the world through this acquisition. The combination of DuPont and BASF’s ultrafiltration technologies adds to the former's water purification and separation technologies, including ultrafiltration, reverse osmosis, and ion exchange resins.
- On October 27, 2017, Cargill, Inc. acquired Integral Animal Nutrition, a cattle feed producer based in Brazil. The acquisition helped the company develop its free choice mineral and premix business to serve customers in Brazil.
Xanthan Gum Market: Scope of the Report
TMR’s recent publication on the xanthan gum market provides audiences with an overall market outlook, with the help of a comprehensive assessment of the global market scenario. TMR’s study on the xanthan gum market analyzes the industry with respect to the historical and current market scenario, which offers a forecast for the period of 2019 to 2027.
Report readers are able to make important decisions pertaining to their business with a wealth of information and exclusive xanthan gum market insights enclosed in the study. The xanthan gum market report also provides an in-depth understanding of the key industry trends and developments made by companies. This TMR report is divided into different sections that allow readers to gain an individual understanding of the xanthan gum market.
Key Queries Addressed in Report
- How much revenue is the xanthan gum market expected to generate by the end of the forecast period?
- Which application of xanthan gum is likely to generate the highest revenue by 2027?
- What are the key growth indicators and market dynamics that are expected to drive the xanthan gum market in the next five years?
- Which regions are estimated to provide lucrative opportunities for the xanthan gum market?
- What are the essential strategies incorporated by key xanthan gum market players in an attempt to expand their geographical presence?
The first section in TMR’s report on the xanthan gum market begins with a premise that includes the report scope, market segmentation, and research highlights. This is followed by an executive summary that emphasizes the xanthan gum market aspects covered in the study. This section provides a brief understanding of the market elements, and enables readers to understand the aspects covered in the study. The report also includes the market dynamics that offer an understanding of the market drivers, restraints, and opportunities.
The next section includes an extensive segmentation analysis of the xanthan gum market. This evaluation includes the division of the xanthan gum market segments based on application and region. Furthermore, an analysis of these key segments, year-on-year growth projections, and basis point share analysis are included in the report. These help readers identify promising market growth areas.
The TMR study on the xanthan gum market offers an assessment of the geographical landscape of the market. The regional study helps market competitors make important decisions pertaining to their business. Individualized, country-wise, and segment-wise analysis pertaining to individual regions helps readers decipher the potential of the market in various geographies. Supported by year-on-year growth projections and global value and volume share, this section is a vital part of the report.
The study on the xanthan gum market offers a holistic competitive value judgment, with the details of leading and emerging market players. The dashboard view of the competitors in the xanthan gum market report allows readers to understand their business and strategies, along with their performance.
The TMR report on the xanthan gum market is based on a detailed estimation of the market, with the inclusion of comprehensive primary and secondary research inputs. Detailed investigation of the xanthan gum market in terms of competitive scenario is supported by an individual-level examination of different avenues related to the industry. Furthermore, for secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the xanthan gum market. This helps TMR’s analysts derive crucial predictions and forecast analysis of the xanthan gum market. Readers can access the xanthan gum market study to gain a forecasted market analysis for the period of 2019 to 2027.
Xanthan Gum Market: Segmentation
Food & Beverages
Oil & Gas
Personal Care Products
Others (Including Lab Research, Agrochemicals, Paints, and Printing Inks)
Middle East & Africa