Despite the over-capacity and price fluctuations, the global xanthan gum market size was 132.1 kilo tons in 2017. The ingredient is used in numerous applications including oil & gas, food & beverages, pharmaceuticals, and cosmetics among others. The growth of these end-use sectors is expected to augment the growth of the global xanthan gum industry over the forecast period between 2018 and 2025.
Xanthan gum exhibits different functionalities including viscosity, stabilizer, thickener, and rheology among others. These properties of xanthan gum make it an excellent choice in numerous end-users, as stated above. In the oil & gas sector, xanthan gum is used in substantial amounts to thicken drilling mud which helps in suspending solids. Xanthan gum properties do not alter in the presence of high concentration of alkali, acids or salts as well as high temperatures. This aspect is especially useful in enhanced oil drilling (EOR) as well as horizontal drilling. Xanthan gum usage has expanded with the widespread use of horizontal drilling for better control of drilled solids. Also, the xanthan gum finds its application in underwater concrete as it is added to concrete in order to increase its viscosity thus preventing washout. The increasing use of low-priced xanthan gum as an alternative to its counterpart guar gum would help in increasing the demand of xanthan gum for oil exploration activities. Oil & gas accounted for 40.7% of the global xanthan gum market share, by volume, in 2017.
The increasing demand for oil & gas coupled with the declining levels of existing oil wells is expected to consequently augment the demand for xanthan gum. Lucrative growth in crude oil production in countries such as the U.S., Russia, and Saudi Arabia is expected to spur the demand for xanthan gum in the coming years. For instance, in October 2018, crude oil production in the U.S. reached 11537 BBL/D/1K from 9964 BBL/D/1K in January 2018. The demand for xanthan gum in the oil & gas sector was 53.8 kilo tons in 2017.
Xanthan gum is widely used as a food additive in the form of a thickener or stabilizer. Xanthan gum helps in maintaining the viscosity and stability, thus, making it an excellent suspending, thickening and stabilizing agent for many products. The growing demand for food products, especially ready meals, is expected to drive the global xanthan gum market growth. Other than ready meals, xanthan gum is used in infant formula, bakery & confectionery products, desserts & ice-creams, sauces, seasoning & dressings, alcoholic beverages, soft drinks, sports drinks, and juice drinks among others. The global food & beverage market was valued at USD 80.25 billion in 2017 and is expected to grow at a CAGR exceeding 8% between 2018 and 2025. This development of the global food & beverage industry is likely to augment the global xanthan gum market size over the stipulated forecast period. Xanthan gum demand in the food & beverages segment is anticipated to witness a revenue CAGR of 6% between 2018 and 2025.
The global xanthan gum market analysis shows that Asia Pacific dominated the global industry in 2017 and is expected to continue during the coming years pertaining to increasing production from Chinese manufacturers. Asia Pacific accounted for 30.3% of the global xanthan gum market share, in terms of revenue generation, in 2017. The domestic demand for xanthan gum is substantial due to the presence of a growing industrial sector in the region. In light of this potential growth, Chinese manufacturers are increasing their production capacity to meet the global xanthan gum market demand. For instance, in 2018, Fufeng Group increased its production capacity to 65,000 tones by introducing a new production line at Xinjiang Plant. Furthermore, increasing average selling price within China is expected to spur the regional market growth in the coming years.
China was the world’s largest manufacturer of xanthan gum. However, antidumping duties are being laid on Chinese manufacturers by the U.S. to reduce the monopoly. CP Kelco which is a xanthan gum manufacturer based in the U.S., are being hit hard by Chinese manufacturers. To prevent such trade wars, the Department of Commerce imposed anti-dumping duties on Chinese import to the U.S. up to 154.07%.
The global xanthan gum market consolidated in nature on account of major players occupying the majority of the market share. Key players within the market are Deosen USA Inc., Jungbunzlauer Suisse AG, Meihua Holdings Group Co. Ltd., Archer Daniels Midland (ADM) Company, Cargill, Incorporated, Fufeng Group Company Ltd., Hebei Xinhe Biochemical Co. Ltd., CP Kelco, and Unionchem Co. Ltd. among others.
Xanthan Gum Market Scope
|Growth Rate||CAGR of 8% during 2021-2028|
Key segments of the global xanthan gum market
Product Overview, 2018-2025 (USD Million) (Kilo Tons)
- Oil & Gas
- Food & Beverage
Regional Overview, 2018-2025 (USD Million) (Kilo Tons)
- North America
- Asia Pacific
- Rest of the World
Reasons for the study
- The study assesses the dynamics and movement of the global xanthan gum market across various geographies
- While studying the global xanthan gum market, we observed lucrative demand from developing countries such as India, Japan, China among others
- The market is fragmented and major players have their presence across the globe. The companies as well as research institutes are concentrating on studies to enhance advancements to meet the global demand.
What does the report include?
- The report focuses on xanthan gum market on the basis of applications
- The study on the global xanthan gum market includes qualitative factors such as pipeline analysis, drivers, restraints and opportunities.
- The study covers qualitative and quantitative xanthan gum market analysis and segmented on the basis of application and region. Moreover, the study provides similar information for the key geographies
- Actual market sizes and forecasts have been provided for all the above-mentioned segments
- The study includes the profiles of key players in the market with a significant global and/or regional presence
Who should buy this report?
- The report on the global xanthan gum market is suitable for all the players across the value chain including food & beverage, oil & gas, cosmetics, pharmaceuticals industry
- Venture capitalists and investors looking for more information on the future outlook of the global xanthan gum market
- Consultants, analysts, researcher, academicians looking for insights shaping the global xanthan gum market