Xanthan Gum Market

Rising trend of veganism to boost the market growth

The utilization of vegan products in the food sector has accelerated due to the rapidly rising vegan population on a scale. Vegans make up 1.1% of the world's population. Hence, there will be roughly 88 million vegans in the globe as a whole in 2023. This element directly influences the value growth of the xanthan gum market, the rising vegan population, and other macro drivers, including the increased demand for convenience and ready-to-eat products and a steady increase in GDP per capita. Therefore, the growing trend of veganism has enhanced the market for xanthan gum CAGR in recent years.

The oil industry's rapid expansion is probably good news for the xanthan gum business. In this business, xanthan gum is frequently employed as an economical and environmentally friendly oil drilling fluid. It strongly resists alkalis, acids, salts, and high temperatures. Due to its suspending qualities, xanthan gum can improve mud permeability and lower drilling pressure loss. In addition, well wall stabilization and decreased reservoir damage come with increased drilling efficiency. Moreover, due to its superior rheological qualities, xanthan gum is chosen over CMC, polyacrylamide, modified starch, and other polysaccharides like guar gum in the development of oilfields.

Thus the rapid expansion of the oil industry is another factor driving the growth of the xanthan gum market revenue. 

The Global Xanthan Gum Market Industry experiences a notable surge in demand within the food sector, primarily due to its multifunctional properties as a thickening and stabilizing agent. Xanthan gum is widely utilized in gluten-free products, sauces, and dressings, catering to the growing consumer preference for healthier and gluten-free options. As of 2024, the market valuation stands at 0.64 USD Billion, reflecting the increasing incorporation of xanthan gum in various food applications. This trend is likely to continue, with projections suggesting a market growth to 1.03 USD Billion by 2035, indicating a robust CAGR of 4.45% from 2025 to 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Xanthan Gum market accounted for USD 0.27 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Drilling operations grew in North America as a result of the rising demand for petroleum and petroleum-based goods, which is likely to strengthen the oil & gas sector and, in turn, drive the market's expansion. The EIA predicted an increase in petroleum production to 12.34 million bpd in 2023.

In comparison, a record 12.29 million bpd was achieved in 2019. The anticipated consumption of petroleum and other liquid fuels will increase from the prior estimate of 20.48 million bpd to 20.51 million bpd. Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. 

Figure 3: XANTHAN GUM MARKET SHARE BY REGION 2022 (%) 

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review 

Europe’s xanthan gum market accounts for the second-largest market share. One of the key drivers of the xanthan gum rising growth in the European region is the bakery sector's expansion. The market is expanding due to growing customer demand for bread baked by hand and on a smaller scale. About half of the people in the UK consume bread daily, and about 2.5 million frequently purchase it from their neighborhood bakeries, making these establishments essential to the nation's economy.

Further, the German market for xanthan gum held the largest market share, and the UK xanthan gum industry was the fastest-growing market in the European region. The Asia-Pacific Xanthan Gum Market is predicted to grow at the fastest CAGR from 2022 to 2030. Due to its increased reliance on the food and beverage industry, particularly the bakery industries, the Asia Pacific area accounts for the highest portion. Because of an increase in the population of seniors, the Chinese and Japanese markets have unusually high nutraceutical consumption.

Almost 59 percent of respondents in mainland China indicated that they take dietary supplements in a Rakuten Insight study performed in March 2022. Moreover, the China market for xanthan gum held the largest market share, and the Indian xanthan gum industry was the fastest-growing market in the Asia-Pacific region.

Major market players are investing huge amounts of money in R&D to increase the range of products they offer, which will propel the xanthan gum market to further expansion. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their footprint. To grow and thrive in a more cutthroat and competitive market climate, xanthan gum industry competitors must provide affordable goods.

Manufacturing locally to cut operational costs is one of the main business methods manufacturers use in the xanthan gum industry to benefit customers and develop the market sector. The xanthan gum industry has recently given medicine some of the most important advantages. Xanthan gum market major players, including Hebei Xinhe Biochemical Co. Ltd., Archer Daniels Midland Company, CP Kelco, Cargill, and others, aim to boost the market demand by funding R&D projects. Hello is a privately held independent consumer goods company headquartered in Montclair, New Jersey. Hello Goods LLC sells personal care items.

Hello is a modest firm that is working hard to accomplish big, friendly things for lips all around the world. The company sells toothpaste, mouthwash, toothbrushes, floss, and other such items. In February 2022, Hello Products LLC, a division of Colgate-Palmolive, introduced the Really Friendly collection, which contains four types of toothpaste and mouthwash. The various types of toothpaste are manufactured with Xanthum Gum, titanium dioxide, Cocamidopropyl betaine, and other substances to address whitening, sensitivity, and fluoride. Also, Deosen has been recognized as the leading quality Xanthan gum maker for over 26 years.

Products include pharmaceutical grade, food grade, pet food grade products, and special grade items such as rapid dispersible, low dust, and clear products. Deosen is a manufacturer as well as a solution provider. In August 2020, Deosen Biochemicals introduced Ziboxan® TS, a novel xanthan gum soluble in hydrophilic organic solvents for gel formation, specially developed for personal care applications.