Market Size of Xanthan Gum Industry
| 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 |
Major Players.webp "Xanthan Gum Market Major Players"){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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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.
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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.
Xanthan Gum Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Wide Applications and Functionality
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1.1.2 Demand For Gluten-Free Products
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1.2 Market Restraints
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1.2.1 Easy Availability of Economically Feasible Alternatives
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Form
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2.1.1 Liquid
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2.1.2 Dry
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2.2 Application
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2.2.1 Food and Beverages
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2.2.1.1 Bakery Products
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2.2.1.2 Confectionery
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2.2.1.3 Meat Products
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2.2.1.4 Frozen Food
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2.2.1.5 Dairy Products
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2.2.1.6 Beverages
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2.2.1.7 Others
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2.2.2 Pharmaceuticals
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2.2.3 Personal care and Cosmetics
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2.2.4 Oil Refinery
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2.2.5 Other Applications
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Spain
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2.3.2.2 United Kingdom
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2.3.2.3 Germany
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East & Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emrates
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2.3.5.3 Rest of Middle East and Africa
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Xanthan Gum Market Size FAQs
How big is the Xanthan Gum Market?
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.
What is the current Xanthan Gum Market size?
In 2024, the Xanthan Gum Market size is expected to reach USD 754.80 million.
