Xanthan Gum Market Size (2024 - 2029)

The xanthan gum market is projected to experience significant growth over the forecast period, driven by its application in the food industry due to its thickening and stabilizing properties. This plant-based hydrocolloid is increasingly favored for its ability to enhance the texture, consistency, and shelf life of various food products, including bakery items, sauces, and gluten-free options. Regulatory support, such as the FDA's recognition of its safety for human consumption, further propels market expansion. Additionally, its compatibility with vegan and vegetarian diets makes it an attractive alternative to animal-sourced ingredients. Key market players are actively pursuing strategies like product development and partnerships to increase their market presence and share.

Market Size of Xanthan Gum Industry

Xanthan Gum Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 754.80 Million
Market Size (2029) USD 996.30 Million
CAGR (2024 - 2029) 5.71 %
Fastest Growing Market Asia
Largest Market Asia
Market Concentration High

Major Players

Xanthan Gum Market Major Players

*Disclaimer: Major Players sorted in no particular order

Xanthan Gum Market Analysis

The Xanthan Gum Market size is estimated at USD 754.80 million in 2024, and is expected to reach USD 996.30 million by 2029, growing at a CAGR of 5.71% during the forecast period (2024-2029).

  • Xanthan gum is derived from plant-based sugars and bacteria. It is mainly used in the food industry due to its thickening and stabilizing properties. Besides, it also improves the texture, consistency, flavor, shelf life, and appearance of food products. Additionally, due to its robust functional properties, xanthan gum is employed in formulations of bakery products, fruit juices, soups, ice cream, sauces, gravies, gluten-free products, and others.
  • In addition, clear regulatory guidelines are fueling the market growth. For instance, the United States Food and Drug Administration (FDA) recognized using xanthan gum for direct human consumption as safe under the Code of Federal Regulations (CFR) 21. However, the regulatory body has set apart some prescribed conditions for using xanthan gum in food products.
  • Xanthan is a vegan- and vegetarian-friendly hydrocolloid that readily complies with halal and kosher claims. Thus, it remains a promising substitute for other animal-sourced hydrocolloids for manufacturers willing to cater to a vegan consumer base.
  • Prominent players in the market focus on developing new products, mergers, expansion, acquisitions, and partnerships with other companies to enhance brand presence and expand their market share. For instance, in July 2022, CP Kelco expanded its bio-gum production capacity, including xanthan gum, at its United States and China plant facilities.

Xanthan Gum Industry Segmentation

Xanthan gum is a polysaccharide produced by the fermentation of carbohydrates by a gram-negative bacterium (Xanthomonas campestris). It is widely used as a thickening and suspending agent in pharmaceuticals and prepared foods.

The global xanthan gum market has been segmented by form, application, and geography. Based on form, the market is segmented into liquid and dry. Further, based on application, the market is divided into food and beverages, pharmaceuticals, personal care and cosmetics, oil refinery, and other applications. The food and beverages segment is further segmented into bakery, confectionery, meat, frozen, dairy, beverages, and others. By geography, the study provides key insights into the major regions, including North America, Europe, Asia-Pacific, South America, and Middle-East & Africa. The report offers market size and forecasts for the xanthan gum market in value (USD) for all the above segments.

Form
Liquid
Dry
Application
Food and Beverages
Bakery Products
Confectionery
Meat Products
Frozen Food
Dairy Products
Beverages
Others
Pharmaceuticals
Personal care and Cosmetics
Oil Refinery
Other Applications
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Spain
United Kingdom
Germany
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
South Africa
United Arab Emrates
Rest of Middle East and Africa
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Xanthan Gum Market Size Summary

The xanthan gum market is poised for significant growth, driven by its extensive application in the food industry due to its thickening and stabilizing properties. This plant-based hydrocolloid is increasingly favored for its ability to enhance the texture, consistency, and shelf life of various food products, including bakery items, fruit juices, and gluten-free products. The market benefits from clear regulatory support, such as the FDA's recognition of its safety for human consumption, which bolsters its adoption in food formulations. Additionally, xanthan gum's vegan and vegetarian-friendly nature, along with its compliance with halal and kosher standards, makes it an attractive alternative to animal-sourced hydrocolloids, appealing to manufacturers targeting vegan consumers. The market is characterized by strategic activities such as product development, mergers, and expansions by key players, which further strengthen their market presence and share.

The demand for xanthan gum is also fueled by the increasing consumption of bakery products and the rising popularity of sugar-free and gluten-free chocolates, where it serves as a gluten substitute. Its role as a thickening and stabilizing agent in processed meat products enhances its market appeal, particularly with the growing global demand for such products. The Asia Pacific region holds a dominant position in the market, supported by the rapid growth of the food and beverage sector, urbanization, and rising consumer awareness about healthy food ingredients. The market is consolidated, with major players like Cargill Inc., Archer Daniels Midland Company, and Fufeng Group competing for market share through innovation and strategic partnerships. Recent expansions and investments in production capacities, particularly in Asia, underscore the region's pivotal role in the market's growth trajectory.

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Xanthan Gum Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Wide Applications and Functionality

      2. 1.1.2 Demand For Gluten-Free Products

    2. 1.2 Market Restraints

      1. 1.2.1 Easy Availability of Economically Feasible Alternatives

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form

      1. 2.1.1 Liquid

      2. 2.1.2 Dry

    2. 2.2 Application

      1. 2.2.1 Food and Beverages

        1. 2.2.1.1 Bakery Products

        2. 2.2.1.2 Confectionery

        3. 2.2.1.3 Meat Products

        4. 2.2.1.4 Frozen Food

        5. 2.2.1.5 Dairy Products

        6. 2.2.1.6 Beverages

        7. 2.2.1.7 Others

      2. 2.2.2 Pharmaceuticals

      3. 2.2.3 Personal care and Cosmetics

      4. 2.2.4 Oil Refinery

      5. 2.2.5 Other Applications

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

        4. 2.3.1.4 Rest of North America

      2. 2.3.2 Europe

        1. 2.3.2.1 Spain

        2. 2.3.2.2 United Kingdom

        3. 2.3.2.3 Germany

        4. 2.3.2.4 France

        5. 2.3.2.5 Italy

        6. 2.3.2.6 Russia

        7. 2.3.2.7 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 Japan

        3. 2.3.3.3 India

        4. 2.3.3.4 Australia

        5. 2.3.3.5 Rest of Asia-Pacific

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East & Africa

        1. 2.3.5.1 South Africa

        2. 2.3.5.2 United Arab Emrates

        3. 2.3.5.3 Rest of Middle East and Africa

Xanthan Gum Market Size FAQs

The Xanthan Gum Market size is expected to reach USD 754.80 million in 2024 and grow at a CAGR of 5.71% to reach USD 996.30 million by 2029.

In 2024, the Xanthan Gum Market size is expected to reach USD 754.80 million.

Xanthan Gum Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)