It is commonly used as a food additive and thickening agent in various food products such as dairy products, meat products, salad dressings, and sauces. As a food additive, it provides viscosity, stability, and emulsion for various food products. Xanthan gum also finds applications in industrial sectors such as petroleum, pharmaceuticals, and cosmetics industries.
The global xanthan gum market is estimated to be valued at US$ 1.4 billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the xanthan gum market are CP Kelco, DuPont Danisco, FMC BioPolymer, Jungbunzlauer Suisse AG, and Cargill.
The rising demand for convenience and healthy food products along with increasing spending on packaged food are expected to provide growth opportunities for players in the global xanthan gum market.
Asia Pacific region dominated the Xanthan Gum Market Demand in 2022 owing to increasing demand from countries like China and India. Rapid urbanization and changing food consumption patterns are further expected to support the market growth in the region.
Market drivers
The increasing demand from the food processing industry is one of the major drivers contributing to the growth of xanthan gum market globally. Xanthan gum is widely used as a thickening and stabilizing agent in various food products. It helps provide texture and prevents separation in soups, salad dressings and sauces. The growing processed food industry has created ample opportunities for xanthan gum manufacturers.
PEST Analysis
Political: The demand for xanthan gum is impacted by various food safety regulations imposed by governing bodies worldwide. Stringent guidelines around food additives and ingredients affect the market.
Economic: Factors such as per capita food expenditures influence the demand for products containing xanthan gum. Market players must consider economic conditions that impact consumer spending.
Social: Changing lifestyle and diet preferences impact the consumption of various food products where xanthan gum serves as a functional ingredient. Market participants need to understand evolving social trends.
Technological: Advancements in extraction and production techniques help improve yields and lower manufacturing costs. Automation helps increase production volumes. Usage of big data and AI aids in demand forecasting and developing suitable offerings.
Geographical Regions of Concentration
The North American region accounts for a major value share of the global xanthan gum market owing to high demand from various end-use industries present in countries like the United States and Canada. Established markets in Europe also contribute significantly driven by increased importance of natural ingredients and clean-label products in the region. The Asia Pacific region is expected to witness fastest growth in demand attributable to expanding food manufacturing sectors, rising health consciousness and growing middle-class populations in countries like China, India and Southeast Asia.
Fastest Growing Regional Market
The Asia Pacific region is projected to be the fastest growing market for xanthan gum during the forecast period at a CAGR of over 5%. Rapid economic development leading to westernization and changing dietary habits has increased consumption of convenience and packaged food products in Asia Pacific countries. This in turn is propelling demand for functional ingredients like xanthan gum. Additionally, increasing focus on health and wellness is fueling demand for products containing natural ingredients and additives with multiple functional benefits. Manufacturers are also expanding regional production capacities to cater to the robust expansion of food processing sectors in Asia Pacific economies.
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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)
