Market Overview:
Xanthan gum is a polysaccharide produced by fermentation of glucose or sucrose by Xanthomonas campestris bacteria. It is commonly used as a food additive and thickening agent in the food industry. Due to its high viscosity and ability to stabilize emulsions even at low concentrations, xanthan gum finds extensive usage in salad dressings, sauces, dairy products and bakery items for enhancing their textures. It is approved by regulatory agencies worldwide for consumption as it is acquired through natural fermentation process. Additionally, xanthan gum also finds extensive applications in personal care and pharmaceutical sectors to increase consistency of products and control sedimentation rates. With increasing consumer inclination towards natural ingredients and versatile functional properties of xanthan gum, its demand is surging in industries.
The Global Xanthan Gum Market is estimated to be valued at US$ 1 Billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 To 2031.
Key Takeaways:
Key players operating in the Xanthan Gum market are CP Kelco, Jungbunzlauer Suisse AG, Fufeng Group Company Ltd., Deosen Biochemical Ltd., Archer Daniels Midland Company, DuPont-Danisco and Hebei Xinhe Biochemical Co.
Growing awareness about health benefits of food additives from natural sources is boosting xanthan gum demand in varied food applications. Its use prevents separation and improves taste, texture and shelf-life of food products. Additionally, it also finds extensive usage in personal care, oil & gas industries which is further propelling the market growth.
Major players are expanding their production capacities and global footprint to cater growing product demand. CP Kelco recently invested in a new manufacturing facility in China to double its xanthan gum production capacity. Similarly, Fufeng group is expanding its production bases across continents to strengthen global supply network.
Market Key Trends:
Increased research on new applications is one of the key trends witnessed in the Xanthan Gum Market Demand. Ongoing studies are analyzing its effectiveness in 3D-bioprinting applications and as thickening agents for various medicines. This will unlock new revenue streams. Additionally, growing demand for gluten-free products due to rising celiac disease cases is also boosting market. Xanthan gum is commonly utilized as gluten-free replacement to impart elasticity in bakery products.Furthermore, surging usage of xanthan gum in hydraulic fracturing operations of oil & gas industry for its ability to form highly viscous fluids is expected to drive the market over forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements for production act as a barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous established players.
Bargaining power of suppliers: Suppliers have moderate power due to the availability of alternative raw material sources.
Threat of new substitutes: Low threat due to limited substitutes for xanthan gum in various applications.
Competitive rivalry: Intense competition among established players.
Geographical Regions
North America currently dominates the xanthan gum market in terms of value. Easy availability of raw materials and widespread use across various industries such as food & beverages drives the demand.
Asia Pacific is projected to witness the fastest growth during the forecast period. Increasing population, rising disposable incomes, and growing focus toward natural ingredients are boosting the market in the region. China represents a major consuming country for xanthan gum.
Geographical Regions
Europe accounts for a significant share of the global market. Stringent regulations regarding food additives and well-established food processing sector contribute to the large size. Germany, UK, France, and Italy showcase high consumption.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)