Xanthan Market - Forecast(2024 - 2030)

Report Code: CMR 0794 Report Format: PDF + Excel

Xanthan Market - Overview

The Xanthan market size is forecast to reach USD 2.35 billion by 2030, after growing at a CAGR of 6.2% during the forecast period 2024-2030.  The Xanthan market has been experiencing substantial growth, reflecting its increasing importance across various industries. Market expansion is primarily driven by the rising demand for gluten-free food products, as Xanthan serves as an essential ingredient in providing the desired texture and consistency in these products. The rising demand for convenience foods, coupled with the growing trend of clean label ingredients, has significantly driven the market's expansion. Moreover, Xanthan's versatility in enhancing the texture and shelf life of food products has propelled its adoption in the pharmaceutical and cosmetic sectors.

Additionally, the increasing awareness and demand for natural and organic products have fueled the growth of the Xanthan market, as it is considered a plant-based ingredient. The market is also benefiting from the rising consumer inclination towards gluten-free products, as Xanthan serves as an effective alternative in gluten-free baking. The oil and gas industry's utilization of Xanthan in drilling applications further contributes to the market's expansion. The gum's unique rheological properties make it an essential component in hydraulic fracturing fluids, ensuring optimal viscosity and fluid control during drilling operations. In December 2022, the National Iranian Oil Company (NIOC) announced the discovery of new oil reservoirs in southwest Iran. The company reported that it operates 14 oil and gas exploration blocks in the country.

Market Snapshot:

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Report Coverage

The report “Xanthan Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Xanthan market.
By Function: Thickening Agent, Stabilizing Agent, Suspending Agent, Fat Replacer, Others
By Application: Food & Beverages, Oil & Gas, Personal Care, Medical, Others
By Geography:  North America (US, Canada, Mexico, Rest of North America), South America (Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica, Rest of South America) , Europe (UK, Germany, Italy, France, Netherlands, Belgium, Denmark, Spain, Rest of Europe), APAC (China, Australia, Japan, South Korea, India, Taiwan, Malaysia, Hong Kong, Rest of APAC)and RoW (Middle East (Israel, Saudi Arabia, UAE)), Africa (South Africa, Rest of Middle East & Africa))

Key Takeaways

  • Asia-Pacific dominates the Xanthan market owing to increasing demand for food products consisting Xanthan especially bakery products as it is an effective thickening agent 
  • Xanthan is used to increase moisture retention capacity and inhibit staling which results in increased shelf life of baked products. Furthermore, Consumers nowadays mainly prefer gluten-free food products, thus making Xanthan as most preferential ingredient for such products.
  • The industry is consolidated where limited major suppliers are present. Strategic initiatives taken by the major players in the market such as joint ventures and partnerships are expected to strengthen their position in the industry.

By Function - Segment Analysis

Thickening agent dominated the Xanthan market in 2023. The growing product usage in food manufacturing industry in order to achieve the desired viscosity is anticipated to boost thickening agent market. For example, India created history in agriculture and processed food exports by exporting products worth US$ 25.6 billion in FY22. Export of APEDA products stood at US$ 7.4 billion as of April-June 2022, up 31% compared with US$ 5.7 billion over the same period last fiscal, according to the Directorate General of Commercial Intelligence and Statistics. Rising healthcare cost has led consumers to prefer nutritional products which will favor industry growth. Furthermore, thickening agents facilitates texture and increases shelf life of baked products which will favor the industry growth. Industries such as food and beverages, cosmetics, and pharmaceuticals favored Xanthan for its effectiveness in enhancing texture and viscosity in products. The surge in demand for convenience foods, personal care products, and pharmaceutical formulations played a pivotal role in driving the market for Xanthan as a thickening agent. This dominance also reflected the trust placed by manufacturers in Xanthan to meet the growing consumer expectations for quality and consistency in end products.

By Application - Segment Analysis

Food and Beverages Industry has been the primary market for Xanthan and is expected to grow with the CAGR of 4% during the forecast period from 2024 to 2030. Xanthan is the primary ingredient used in salad dressings, toppings, sauces, dairy products, baked and frozen foods due to the presence of properties such as stabilization of emulsions, thermal stability and compatibility with usable ingredients. The other factor responsible for growth the Xanthan is rise in demand for gluten free food products. Xanthan finds its largest use in the manufacturing of bakery products and the nutritional characteristics of Xanthan further increases its acceptability, as it contains carbohydrates and fiber. The stability provided by Xanthan in food processing, coupled with its ability to create desirable textures in products ranging from sauces and dressings to dairy and bakery items, made it a sought-after ingredient in the industry. The reliable thickening properties of Xanthan, demonstrated in the creation of consistent and appealing textures, were a key factor driving its dominance in the market.

By Geography - Segment Analysis

APAC dominated the Xanthan market with a share of more than 41% in 2023, followed by North America and Europe. The APAC Xanthan market is projected to experience significant growth during the forecast period. The growth of Xanthan is attributed to the increasing demand for bakery and confectionary products from countries such as China, India, Malaysia, and Vietnam. The region's ascendancy in the Xanthan industry can be attributed to several key factors. Firstly, the burgeoning food and beverage sector in Asia Pacific, driven by a growing population and changing dietary preferences, propelled the demand for Xanthan as a versatile thickening agent and stabilizer in various food formulations. Additionally, the region witnessed a surge in industrial applications of Xanthan, particularly in the oil and gas sector, further boosting its market presence. Moreover, the heightened focus on sustainable and clean-label products resonated well with Xanthan's natural origin and eco-friendly characteristics, aligning with the increasing consumer awareness and preferences in the region.

Drivers – Xanthan Market

Regulatory support towards

Regulatory support provided to promote the food & beverage sector across globe is expected to support gluten-free Xanthan demand over the forecast period. According to European Union (EU), Annex II and III to Regulation (EC) No 1333/2008 on food additives accepts Xanthan as food additive. Further, the regulation states that Xanthan can be used in food for infants under the age of 12 weeks. The favouring regulations can upsurge the Xanthan market. Moreover, consumers are focusing on gluten free diet to reduce the health-related cost and to have naturally gluten free foods. The diverse group of consumers prefer gluten-free products. The main group includes those with celiac disease (CD), for whom a strict gluten-free diet (GFD) is the only treatment for managing the disease and reducing the risk of other complications. As Xanthan is an alternative to gluten, its market will have a tremendous growth during forecasted period.

Expanding Food and Beverage Industry

The Xanthan industry is witnessing substantial growth propelled by the expanding Food and Beverage sector, which stands as a pivotal market driver. The relentless expansion of the global food and beverage industry has presented a significant demand for versatile ingredients, and Xanthan has emerged as a preferred choice. Recognized for its multifunctional properties, Xanthan serves as a crucial thickening, stabilizing, and emulsifying agent in various food applications. The demand surge can be attributed to its ability to enhance the texture, shelf life, and overall quality of food products. From sauces and dressings to dairy and bakery items, Xanthan's versatility has made it an indispensable ingredient for manufacturers aiming to meet the evolving consumer preferences. As the Food and Beverage industry continues to innovate and cater to diverse tastes, Xanthan's role is expected to intensify, consolidating its position as a key player in the broader spectrum of food formulation.

Challenges – Xanthan Market  

Alternative of Xanthan

Xanthan is an ingredient used in many gluten-free recipes that includes, breads, cakes, and cookies. The high cost and baked goods made with Xanthan can have gummy texture and slight aftertaste that may not appeal to few consumers. These shortcomings of Xanthan have diverted the attention of baking industry towards its alternative ingredient known as guar gum. The availability of guar gum as a substitute is one of the restraints for the Xanthan market. Furthermore, Agar agar, and chia seeds are other alternatives of Xanthan which can restrain its market. The emergence of various substitutes, including guar gum, locust bean gum, and konjac gum, further intensifies competition within the market. The need for thorough testing, adaptation to diverse applications, and ensuring cost-effectiveness in the production of these alternatives pose significant hurdles for industry players.

Market Landscape

Technology launches, acquisitions, and Partnership activities are key strategies adopted by players in the Xanthan market. In 2023, The major players in the Xanthan market are

  1. Archer Daniel Midland Company
  2. Cargill, Inc
  3. Cp Kelco
  4. E. I. Du Pont De Nemours and Company
  5. FMC Corporartion
  6. Fufeng Group Company Ltd
  7. Ingredion Incorporated
  8. Meihua Holding Group Co, Ltd
  9. Solvay S A
  10. The Zoranoc Oilfield Chemical

Developments:

  • In July 2022, CP Kelco announced an increase in bio-gum production capacity to meet the growing demand for Xanthan. The company is expanding its facilities in the United States and China.
  • In May 2023, Fufeng Group introduced its new product, the Fufeng Xanthan Powder. This innovative product is derived from cornstarch, undergoing a fermentation process by Xanthomonas bacterium, followed by extraction, drying, and crushing into the final powder form

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1. Xanthan Market - Overview
        1.1 Definitions and Scope
2. Xanthan Market - Executive summary
        2.1 Market Revenue, Market Size and Key Trends by Company
        2.2 Key Trends by type of Application
        2.3 Key Trends segmented by Geography
3. Xanthan Market
        3.1 Comparative analysis
            3.1.1 Product Benchmarking - Top 10 companies
            3.1.2 Top 5 Financials Analysis
            3.1.3 Market Value split by Top 10 companies
            3.1.4 Patent Analysis - Top 10 companies
            3.1.5 Pricing Analysis
4. Xanthan Market - Startup companies Scenario Premium 
        4.1 Top 10 startup company Analysis by
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Market Shares
            4.1.4 Market Size and Application Analysis
            4.1.5 Venture Capital and Funding Scenario
5. Xanthan Market - Industry Market Entry Scenario Premium 
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing business index
        5.3 Case studies of successful ventures
        5.4 Customer Analysis - Top 10 companies
6. Xanthan Market Forces
        6.1 Drivers
        6.2 Constraints
        6.3 Challenges
        6.4 Porters five force model
            6.4.1 Bargaining power of suppliers
            6.4.2 Bargaining powers of customers
            6.4.3 Threat of new entrants
            6.4.4 Rivalry among existing players
            6.4.5 Threat of substitutes
7. Xanthan Market - Strategic analysis
        7.1 Value chain analysis
        7.2 Opportunities analysis
        7.3 Product life cycle
        7.4 Suppliers and distributors Market Share
9. Xanthan Market - By Function (Market Size -$Million / $Billion)
        9.1 Thickening Agent
        9.2 Stabilizing Agent
        9.3 Suspending Agent
        9.4 Fat Replacer
10. Xanthan - By Application (Market Size -$Million / $Billion)
        10.1 Segment type Size and Market Share Analysis
        10.2 Application Revenue and Trends by type of Application
        10.3 Application Segment Analysis by Type
            10.3.1 Introduction
            10.3.2 Food Beverage
                 10.3.2.1 Sauce Dressing
                 10.3.2.2 Meat Poultry Product
                 10.3.2.3 Bakery Product
                 10.3.2.4 Confectionery Product
                 10.3.2.5 Beverage
                 10.3.2.6 Dairy Product
            10.3.3 Oil Gas
            10.3.4 Personal Care Cosmetic
            10.3.5 Medical
11. Xanthan - By Geography (Market Size -$Million / $Billion)
        11.1 Xanthan Market - North America Segment Research
        11.2 North America Market Research (Million / $Billion)
            11.2.1 Segment type Size and Market Size Analysis
            11.2.2 Revenue and Trends
            11.2.3 Application Revenue and Trends by type of Application
            11.2.4 Company Revenue and Product Analysis
            11.2.5 North America Product type and Application Market Size
                  11.2.5.1 U.S
                  11.2.5.2 Canada
                  11.2.5.3 Mexico
                  11.2.5.4 Rest of North America
        11.3 Xanthan- South America Segment Research
        11.4 South America Market Research (Market Size -$Million / $Billion)
            11.4.1 Segment type Size and Market Size Analysis
            11.4.2 Revenue and Trends
            11.4.3 Application Revenue and Trends by type of Application
            11.4.4 Company Revenue and Product Analysis
            11.4.5 South America Product type and Application Market Size
                  11.4.5.1 Brazil
                  11.4.5.2 Venezuela
                  11.4.5.3 Argentina
                  11.4.5.4 Ecuador
                  11.4.5.5 Peru
                  11.4.5.6 Colombia
                  11.4.5.7 Costa Rica
                  11.4.5.8 Rest of South America
        11.5 Xanthan- Europe Segment Research
        11.6 Europe Market Research (Market Size -$Million / $Billion)
            11.6.1 Segment type Size and Market Size Analysis
            11.6.2 Revenue and Trends
            11.6.3 Application Revenue and Trends by type of Application
            11.6.4 Company Revenue and Product Analysis
            11.6.5 Europe Segment Product type and Application Market Size
                  11.6.5.1 U.K
                  11.6.5.2 Germany
                  11.6.5.3 Italy
                  11.6.5.4 France
                  11.6.5.5 Netherlands
                  11.6.5.6 Belgium
                  11.6.5.7 Denmark
                  11.6.5.8 Spain
                  11.6.5.9 Rest of Europe
        11.7 Xanthan - APAC Segment Research
        11.8 APAC Market Research (Market Size -$Million / $Billion)
            11.8.1 Segment type Size and Market Size Analysis
            11.8.2 Revenue and Trends
            11.8.3 Application Revenue and Trends by type of Application
            11.8.4 Company Revenue and Product Analysis
            11.8.5 APAC Segment - Product type and Application Market Size
                  11.8.5.1 China
                  11.8.5.2 Australia
                  11.8.5.3 Japan
                  11.8.5.4 South Korea
                  11.8.5.5 India
                  11.8.5.6 Taiwan
                  11.8.5.7 Malaysia
                  11.8.5.8 Hong kong
                  11.8.5.9 Rest of APAC
        11.9 Xanthan - Middle East Segment and Africa Segment Research
        11.10 Middle East & Africa Market Research (Market Size -$Million / $Billion)
            11.10.1 Segment type Size and Market Size Analysis
            11.10.2 Revenue and Trend Analysis
            11.10.3 Application Revenue and Trends by type of Application
            11.10.4 Company Revenue and Product Analysis
            11.10.5 Middle East Segment Product type and Application Market Size
                  11.10.5.1 Israel
                  11.10.5.2 Saudi Arabia
                  11.10.5.3 UAE
            11.10.6 Africa Segment Analysis
                  11.10.6.1 South Africa
                  11.10.6.2 Rest of Middle East & Africa
12. Xanthan Market - Entropy
        12.1 New product launches
        12.2 M&A s, collaborations, JVs and partnerships
13. Xanthan Market - Industry / Segment Competition landscape Premium 
        13.1 Market Share Analysis
            13.1.1 Market Share by Country- Top companies
            13.1.2 Market Share by Region- Top 10 companies
            13.1.3 Market Share by type of Application - Top 10 companies
            13.1.4 Market Share by type of Product / Product category- Top 10 companies
            13.1.5 Market Share at global level - Top 10 companies
            13.1.6 Best Practices for companies
14. Xanthan Market - Key Company List by Country Premium 
15. Xanthan Market Company Analysis

        15.1 Market Share, Company Revenue, Products, M&A, Developments
        15.2 Archer Daniel Midland Company
        15.3 Cargill, Inc
        15.4 Cp Kelco
        15.5 E. I. Du Pont De Nemours And Company
        15.6 FMC Corporation
        15.7 Fufeng Group Company Ltd
        15.8 Ingredion Incorporated
        15.9 Meihua Holding Group Co , Ltd
        15.10 Solvay S A
        15.11 The Zoranoc Oilfield Chemical
16. Xanthan Market - Appendix
        16.1 Abbreviations
        16.2 Sources
17. Xanthan Market - Methodology
        17.1 Research Methodology
            17.1.1 Company Expert Interviews
            17.1.2 Industry Databases
            17.1.3 Associations
            17.1.4 Company News
            17.1.5 Company Annual Reports
            17.1.6 Application Trends
            17.1.7 New Products and Product database
            17.1.8 Company Transcripts
            17.1.9 R&D Trends
            17.1.10 Key Opinion Leaders Interviews
            17.1.11 Supply and Demand Trends
*Financials would be provided on a best-efforts basis for private companies
 
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