Xanthan Gum Market Expected to Reach $1.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Xanthan Gum Market," The xanthan gum market size was valued at $0.8 billion in 2018, and is estimated to reach $1.6 billion by 2032, growing at a CAGR of 5.9% from 2023 to 2032.

Xanthan gum is a widely used food additive and ingredient that offers several advantages across various applications due to its unique properties. Xanthan gum is an excellent thickener and stabilizer. It increases the viscosity of liquids, making them more gel-like or creamy. This property is often utilized in salad dressings, sauces, soups, and other food products to achieve desired textures. In addition to thickening, xanthan gum can improve the texture of food products. It helps prevent the separation of ingredients in products such as salad dressings, giving them a smooth and consistent texture.

Xanthan gum exhibits shear-thinning behavior, meaning its viscosity decreases under shear or agitation and returns to its original thickness when at rest. This property makes it easy to pour and dispense liquids while maintaining their desired texture. These advantages of xanthan gum are expected to drive the industry growth during the forecast period.

Xanthan gum is a crucial ingredient in gluten-free baking and cooking, as it helps mimic the texture and structure of gluten in food that would typically contain wheat flour. In addition, as the demand for vegan and plant-based products increases, xanthan gum is often used as a replacement for animal-derived thickeners and stabilizers. This factor is expected to propel the xanthan gum market growth during the forecast period.

Increase in demand for gluten-free food products

Xanthan gum plays a crucial role in the production of gluten-free food by providing texture, structure, and stability that are often compromised when gluten is removed from formulations. Xanthan gum is a key ingredient in gluten-free baking. The texture and structure of baked goods can suffer when gluten is removed from recipes. Xanthan gum acts as a binder and stabilizer, improving the elasticity of the dough, mimicking the role of gluten, and resulting in better crumb and texture in gluten-free bread, cakes, and pastries.

Gluten contributes to the chewy and elastic texture of many traditional baked goods. In its absence, gluten-free products can be dry, crumbly, or have an unappealing texture. Xanthan gum helps maintain a pleasing texture and mouthfeel in these products. The ability of xanthan gum to stabilize emulsions and prevent ingredient separation is particularly important in gluten-free products. Products such as sauces, dressings, and soups are prone to breaking or separating without gluten. Xanthan gum ensures a consistent appearance and quality.

Furthermore, gluten-free products often have shorter shelf lives due to their unique formulations. Xanthan gum helps improve the shelf stability of gluten-free products by maintaining their texture and preventing moisture loss. Moreover, the demand for gluten-free products has surged, not only among individuals with celiac disease but also among those who perceive gluten-free diets as healthier. This trend has led to a broadening market for gluten-free alternatives, boosting the xanthan gum industry.

Manufacturers have invested in R&D to improve the taste, texture, and overall quality of gluten-free alternatives as the demand for gluten-free products grows. Xanthan gum is a key tool in achieving these improvements. The demand for xanthan gum is expected to remain strong due to its critical role in creating high-quality gluten-free products that meet consumer expectations for taste and texture as the gluten-free food market continues to expand globally.

Change in consumer preference coupled with increase in consumption of convenience food products

Globally, there is a change in consumer lifestyle that makes them spend less time planning & preparing meals. Food preparation at home is considered a very time-consuming process and there is a decrease in food preparation at home owing to changes in eating habits, busy lifestyles, and attitude toward cooking. There is an increased usage of easy-to-prepare and easy-to-away products in order to meet the food demand & needs of society due to these reasons. Along with this, manufacturers have focused on the additional attributes as per consumer choices such as healthy ethical, and comforting food. For instance, xanthan gum is used as a direct additive in a variety of food to add the required texture. It maintains stability & solubility of the food in the presence of salts and increases the shelf life. Along with this, it keeps the viscosity of the food at a wide range of pH and temperature and is suitable for microwaveable convenience food.

In ready-to-eat chicken, xanthan gum binds meat in the meal and thickens the gravy. The consumption of convenience food is increased by the busy lifestyle, ease of use, variety, and relatively low cost. Rise in number of working women globally, long working hours, and rise in consumer income led to an increase in the consumption of convenience food. In addition, the use of xanthan gum allows fast food products to be shipped, frozen and reheated at the time of consumption. The aforementioned factors are expected to increase the demand for convenience food in turn raise the usage of food additives such as xanthan gum in near future.

The xanthan gum market is segmented into form, grade, end-use industry, and region. On the basis of form, the market is bifurcated into liquid and powder. On the basis of grade, the market is segregated into food grade, industrial grade, pharmaceutical grade, and others. On the basis of end-use industry, it is categorized into food & beverage, oil and gas, pharmaceutical, personal care & cosmetics, and others. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of form, the powder segment dominated the largest market share in 2018 due xanthan gum is a key ingredient in gluten-free and allergen-free food formulations. It helps replicate the texture and structure that gluten provides in traditional products, making it essential for creating gluten-free alternatives that closely match their conventional counterparts.

On the basis of grade, the food grade segment dominated the largest market share in 2018 due food safety regulations and standards have become increasingly stringent in many parts of the world. The use of food-grade ingredients and materials is often mandated to ensure that food products are safe for consumption. Businesses are adopting food-grade materials and ingredients to comply with these regulations and to enhance their brand reputation.

On the basis of end-use industry, the food and beverages segment dominated the largest market share in 2018 due to ability of xanthan gum to improve the stability of suspensions and prevent crystallization makes it valuable for extending the shelf life of food and beverage products. This is especially important in products that undergo storage, shipping, and distribution over longer periods

On the basis of region, the Asia-Pacific region dominated the highest market share in 2018 due to the Asia Pacific region having experienced rapid urbanization and rising disposable incomes, leading to increased demand for processed and convenience food. Applications of xanthan gum in enhancing texture, stability, and quality of these products have driven its demand.

The major players operating in the industry include Cargill Incorporated, DuPont De Nemours, Inc., The Archer-Daniels-Midland Company, Foodchem International Corporation, Deosen Biochemical Ltd., Tate and Lyle PLC Ingredion Incorporated, CP Kelco ApS, Solvay S.A. and C.E. Roeper GmbH. These players have adopted product launch as their key strategy to strengthen their presence in the market.

Key Findings

• By form, the powder segment was the largest revenue contributor in 2018, while liquid segment is anticipated to register the highest CAGR of 6.1% during the forecast period.
• By grade, the food segment was the largest revenue contributor in 2018 and it is anticipated to register the highest CAGR during the forecast period.
• By end use industry, the food and beverage segment was the largest revenue contributor in 2018 and it is anticipated to register the highest CAGR during the forecast period.
• By region, the Asia-Pacific region segment was the largest revenue contributor in 2022.