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Xanthan Gum Market Analysis by Global Segments, Growth, Size and Forecast 2024

Press Release   •   Aug 24, 2017 11:59 EDT

Global Xanthan Gum Market: Snapshot

The food and beverage industry has and is likely to continue showing a heavy support for the global xanthan gum market in terms of demand. Moreover, the expansion of the food and beverage industry into a greater variety of convenience foods is expected to boost the global xanthan gum market even further. Another key driver for the global xanthan gum market is the inherent superiority of xanthan gum to other hydrocolloids. However, current restraints experienced by the global xanthan gum market include the reinforced anti-dumping policies by the U.S. and other developed economies on the import of these products from Austria and China, along with the overall mistrust of quality of xanthan gum supplied by China, which is the leading producer in the market.

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The global xanthan gum market is expected to expand at a very positive CAGR of 7.7% in terms of revenue, between 2016 and 2024. This revenue is expected to reach as much as US$1.25 bn by the end of 2024, after being calculated at US$651.5 mn at the end of 2015. In terms of volume, the global xanthan gum market is expected to expand at a CAGR of 7.3% for the above forecast period. The key end users of the global xanthan gum market include the industries of food and beverage, oil and gas, pharmaceuticals, personal care, and other minor end users such as lab research prospects and agrochemicals. The extremely high use of xanthan gum in the food and beverage industry is spread across the areas of bakery and confectionary, dairy and ice creams, meat and fish, beverages, and sauces and dressings.

Emerging Economies Show Upswing in Demand for Xanthan Gum

The global xanthan gum market’s overall volume-based demand has predominantly been led by Asia Pacific. In 2015, Asia Pacific took up 35% of the market’s global share in volume. Furthermore, this region is expected to show a phenomenal rate of growth in demand for xanthan gum over the coming years, primarily due to the massive demand for it in China. In terms of countries, China, the U.S., and Canada have been the leaders in consumption rate of xanthan gum. Key players in the global market are currently looking at emerging economies especially from the Asia Pacific region to improve their revenue generation. Countries such as India along with the leading consumer of xanthan gum – China – are expected to show a very high requirement for it in their food and beverage industries. Based on the key regions, Asia Pacific followed by North America are expected to be very beneficial areas for players in the global xanthan gum market. The demand for xanthan gum is expected to mature soon, while Latin America and the Middle East and Africa are expected to show a slower growth in demand.

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Food and Beverage Demand for Xanthan Gum Key to Market’s Growth

Of the various end users in the global xanthan gum market today, the food and beverage industry trumps the rest in terms of demand and scope of use. In 2015, the food and beverage industry alone was responsible for the consumption of over 50% of the xanthan gum produced globally. The food and beverage sector is likely to continue being a highly attractive end user for the players in the global xanthan gum market due the importance of this ingredient in several types of products within the food and beverage sector. Xanthan gum is especially in high demand by the manufacturers of sauces and dressings, followed by the manufacturers of dairy and ice creams.

The top names associated with the global xanthan gum market currently include CP Kelco, Fufeng Group Company Limited, Cargill, Inc., Archer Daniels Midland Company, The Aurora Chemical, Jungbunzlauer Suisse AG, Hebei Xinhe Biochemical Co., Ltd., MeiHua Holdings Group Co., Ltd, Deosen, DuPont-Danisco, The Zoranoc Oilfield Chemical, Solvay S.A., and FMC BioPolymer.

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