Xanthan Gum Market is Estimated to Witness High Growth Owing to Increasing Usage in Pet Food and Increasing Demand from the Pharmaceutical Industry
The xanthan gum market is estimated to be valued at USD 735.3 million in 2024, exhibiting a CAGR of 4.2% over the forecast period (2024-2031). Xanthan gum finds usage in various end-use industries such as food & beverages, personal care products, pharmaceuticals, and pet food. It acts as a thickening, stabilizing, and emulsifying agent in these industries.
The xanthan gum market is driven by increasing usage in pet food and increasing demand from the pharmaceutical industry. Xanthan gum is widely used in pet food as a thickener and stabilizer. It helps to maintain the consistency and texture of wet and dry pet foods. Growing pet humanization and premiumization of pet food are contributing to the increasing demand for xanthan gum from this industry. The pharmaceutical industry uses xanthan gum as an excipient in tablets, capsules and syrups formulations. It acts as a binder and maintains uniform drug dispersal. Rising healthcare spending and increasing demand for advanced drug delivery systems are fueling the demand from pharmaceutical industry. Furthermore, increasing adoption of vegan and gluten-free alternatives in food products is also boosting the demand for xanthan gum.
Increasing Demand from Food & Beverage Industry is Driving the Xanthan Gum Market
The food and beverage industry has seen significant growth in the last few years due to rising disposable incomes and changing lifestyles. Xanthan gum finds wide application in the food industry as a thickening and stabilizing agent. It is used in products such as salad dressings, sauces, gravies, and dairy products to maintain texture and prevent separation. The growth in packaged and processed food consumption globally is directly impacting the demand for xanthan gum. Food companies are introducing new product lines containing xanthan gum to cater to the consumer demand for clean label products.
Growing Personal Care Industry Augmenting the Use of Xanthan Gum
Personal care products such as cosmetics, skin care creams, and hair care products extensively use xanthan gum for its emulsifying and stabilizing properties. It allows the formulation of non-drip gels and creams without affecting the sensory qualities. Xanthan gum enhances the viscosity and stability of personal care products without leaving a sticky or filmy residue on the skin. The global personal care industry has seen steady growth over the years and is expected to further expand especially in emerging economies. This will generate more opportunities for xanthan gum producers to tap new application areas.
Stringent Regulations on Food Additives Pose Challenge
Food safety regulatory bodies across the world have implemented stringent norms regarding the inclusion and permissible limits of food additives in processed food products. Xanthan gum being a hydrocolloid faces regulatory challenges in some regions and countries. Any changes made to existing regulations can adversely impact product development timelines and manufacturing costs. This acts as a restraint for xanthan gum utilization in the food industry. Additionally, negative consumer perception around food additives also influences clean label trends, limiting the application scope of xanthan gum.
Declining Oil Prices Hampering Biosynthesis
Xanthan gum is commercially produced through the fermentation of glucose or sucrose by Xanthomonas campestris bacteria. The fermentation process requires plant-derived pentoses such as glucose as the carbon source. Vegetable oils are the primary raw material used for glucose production. Fluctuating and declining vegetable oil prices affect the economical manufacturing of glucose, escalating the production costs. This restrains xanthan gum manufacturers, especially those relying on biochemical production routes. The challenge is more prominent among small and mid-sized players having limited bargaining power over raw material prices.
Growing Demand for Clean Label Ingredients Opens New Avenues
Clean label is a prominent trend in the food industry today as consumers demand simple and understandable ingredient lists. Xanthan gum manufacturers are innovating new production processes that do not involve the use of any chemical solvents. For example, the development of organic xanthan gum produced from agriculture crop by-products instead of petrochemical feedstocks. The clean label status allows for broader market access and application expansion opportunities for xanthan gum. Functional ingredients compliant with non-GMO and vegan claims will gain more importance globally providing good prospects.
Surging Demand for Emulsifiers from Emerging Economies Represents Opportunity
Developing countries in Asia Pacific, Latin America, Middle East, and Africa are witnessing strong economic growth and improvement in living standards. This is driving greater consumption of packaged foods, personal care and other products that employ emulsifiers like xanthan gum. Export-oriented xanthan gum producers can leverage opportunities arising from the fast-developing markets. Strategic collaborations with regional players and investments in local manufacturing facilities assist in gaining first-mover advantages. The rising focus on food processing and increasing affluence in emerging nations will drive the emulsifier market growth indirectly boosting xanthan gum demand over the forecast period.
Link: https://www.coherentmarketinsights.com/market-insight/xanthan-gum-market-929
Key Developments
- In June 2024, the global agribusiness giant Cargill announced the launch of its new xanthan gum product, which is manufactured in China. Xanthan gum is a widely used food additive and thickening agent, and Cargill's new offering is aimed at meeting the growing global demand for this versatile ingredient.
- In 2023, Mitsubishi Corporation Life Sciences Limited, a subsidiary of Mitsubishi Corporation, announced the expansion of its food ingredient product capacity at the Saiki Factory of its subsidiary Kohjin Life Sciences Ltd.
- In 2020, Jungbunzlauer, a leading global producer of natural ingredients, announced an increase in its xanthan gum production capacity at its facility in Austria.
Key Players
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, Solvay S.A, Akshar Chemical India Private Limited, Vasundhara Industries, Madhu Hydrocolloids Pvt. Ltd., Chem-fert Chemicals, JM Huber Corporation, Mitsubishi Corporation, International Flavours and Fragrances Inc, C.E. Roeper GmbH, and Deosen Biochemical Ltd
