Xanthan Gum Market Size, Trends and Growth Analysis by 2027

The xanthan gum market was valued at approximately US$ 576.11 million in 2020 and is anticipated to grow to US$ 827.57 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.7% from 2021 to 2028.

Xanthan gum is a widely recognized food additive, primarily utilized as a thickening agent and stabilizer. This natural polysaccharide also serves as an industrial biopolymer. It is known for its remarkable adaptability as an elastic thickener, functioning effectively even in minimal amounts. Xanthan gum exhibits high solubility in both hot and cold water, capable of absorbing water exceeding its own weight to create a gel-like substance. Solutions containing xanthan are notably viscous even at low concentrations of the polymer. Its distinct advantages include enhanced viscosity at low concentrations, insensitivity to variations in temperature, pH, and electrolyte levels, as well as the property of pseudoplasticity. Xanthan gum is considered a safe ingredient for various applications, including brines, drilling fluids, and fracturing fluids.

The xanthan gum market is categorized by application into several segments: food & beverages, pharmaceutical & nutraceutical, personal care, oil & gas, and others. In 2020, the food & beverage segment held the largest share of the market, while the pharmaceutical & nutraceutical segment is projected to experience the highest CAGR during the forecast period. Beyond its thickening and stabilizing properties, xanthan gum plays a crucial role in preventing oil separation by stabilizing emulsions in food products like dressings and sauces. It is commonly added to ice creams and other frozen treats to improve texture. In the bakery and confectionery sectors, xanthan gum serves as a humectant, texture enhancer, and viscosity modifier. It acts as a partial substitute for wheat flour, functioning as a binding agent. In gluten-free baking, xanthan gum is essential for providing elasticity and stickiness to doughs and mixtures; without it, gluten-free baked goods may suffer from structural and textural deficiencies. Additionally, xanthan gum, along with cellulose gum, is frequently used as a stabilizer in ready-to-drink (RTD) beverages to enhance shelf stability. Furthermore, xanthan gum is a significant alternative to gelatin, which is derived from animal sources, aligning with the rising trend of veganism that is increasing the demand for plant-based ingredients in the food and beverage sector.

Regionally, the xanthan gum market is divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. In 2020, the Asia Pacific region dominated the market, primarily due to the presence of extensive production facilities that contribute to high domestic consumption of xanthan gum. The growing demand for food and beverages, especially convenience foods, along with the economic growth and urbanization in countries like India and China, is expected to further drive the demand for xanthan gum in this region in the upcoming years.

Several key players are active in the xanthan gum market, including ADM, Cargill, Incorporated, CP Kelco U.S., Inc., Deosen, Fufeng Group, Hebei Xinhe Biochemical Co. Ltd., Ingredion, Meihua Holdings Group Co. Ltd., Solvay S.A., and Unionchem.

The overall size of the global xanthan gum market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the information and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the xanthan gum market.