1 Global Xanthan Gum Market Size (Value) and CAGR (2024-2033)
In 2024, the global Xanthan Gum market was valued at USD 1069.51 million, with a CAGR of 4.39% from 2024 to 2033.
Xanthan gum is a polysaccharide with many industrial uses, including as a common food additive. It is an effective thickening agent and stabilizer to prevent ingredients from separating. It can be produced from simple sugars using a fermentation process and derives its name from the species of bacteria used, Xanthomonas campestris.
Figure Global Xanthan Gum Market Size (M USD) and CAGR 2024-2033
2 Xanthan Gum Market Drivers
Growing Demand from Emerging Economies: The rapid economic development in emerging economies, particularly in Asia-Pacific regions such as China and India, has significantly increased the demand for Xanthan Gum. These countries have large populations with rising disposable incomes, leading to higher consumption of processed foods, pharmaceuticals, and personal care products, all of which utilize Xanthan Gum as a key ingredient.
Increasing Industrialization: The expansion of industrial sectors in developing countries has led to higher demand for Xanthan Gum in various applications. For instance, the growth of the oil drilling industry in regions like the Middle East and Africa has increased the need for Xanthan Gum as a drilling fluid additive.
Advancements in Fermentation Technology: Improvements in fermentation processes have enhanced the production efficiency and quality of Xanthan Gum. Modern biotechnological methods allow for higher yields and better control over the production process, making Xanthan Gum more cost-effective and accessible to a wider range of industries.
3 Xanthan Gum Market Restraints
High Production Costs: The production of Xanthan Gum involves a complex fermentation process, which can be expensive. The raw materials, such as corn granules, and the energy required for fermentation contribute significantly to the overall production costs. This can make Xanthan Gum less competitive compared to cheaper alternatives.
Fluctuating Raw Material Prices: The prices of raw materials, particularly corn, are subject to market fluctuations. These fluctuations can impact the production costs and profitability of Xanthan Gum manufacturers, making it difficult to maintain stable pricing.
High Labor Costs: In regions with high labor costs, such as North America and Europe, the production of Xanthan Gum can become economically challenging. This can limit the expansion of production facilities in these regions and increase reliance on imports from lower-cost regions.
Availability of Low-Cost Alternatives: The market for thickeners and stabilizers includes several low-cost alternatives to Xanthan Gum, such as guar gum and locust bean gum. These alternatives are often preferred in price-sensitive markets, limiting the market share of Xanthan Gum.
4 Global Xanthan Gum Market Size by Type in 2024
Food Grade Xanthan Gum is the most widely used type, primarily due to its versatility and effectiveness in enhancing the texture and stability of food products. In 2024, the Food Grade segment is projected to be valued at around $460.20 million. This type is essential in the food industry for applications such as salad dressings, baked goods, dairy products, and gluten-free formulations. Its ability to provide viscosity and prevent ingredient separation makes it a crucial ingredient in many food products.
Oilfield Grade Xanthan Gum is another significant segment, valued at approximately $345.77 million in 2024. This type is specifically designed for use in the oil drilling industry. It is used as a drilling fluid additive to enhance mud viscosity, improve drilling efficiency, and prevent wellbore instability. The high viscosity and shear-thinning properties of Oilfield Grade Xanthan Gum make it ideal for maintaining drilling fluid performance under various downhole conditions.
Pharmaceutical & Cosmetics Grade Xanthan Gum is valued at around $200.03 million in 2024. This type is used in the pharmaceutical and cosmetics industries for its stabilizing and thickening properties. In pharmaceutical applications, it is used as a suspending agent, emulsifier, and stabilizer in liquid and semi-solid formulations. In the cosmetics industry, it is used to enhance the texture and stability of products such as creams, lotions, and gels. The market for this type is driven by the growing demand for high-quality pharmaceuticals and personal care products, as well as the increasing focus on natural and effective ingredients.
Table Global Xanthan Gum Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
Food grade | 460.20 |
Oilfield Grade | 345.77 |
Pharmaceutical Grade | 200.03 |
Others | 63.50 |
5 Global Xanthan Gum Market Size by Application in 2024
The food industry is the largest consumer of Xanthan Gum, with a market value of around $401.50 million in 2024. Xanthan Gum is used extensively in food products to enhance texture, stability, and shelf life. It is particularly important in gluten-free baking, salad dressings, dairy products, and processed foods. The growing demand for processed foods and the increasing popularity of gluten-free diets are key drivers for the use of Xanthan Gum in the food industry.
The pharmaceutical industry is another significant consumer of Xanthan Gum, with a market value of approximately $111.37 million in 2024. Xanthan Gum is used as a thickening agent, suspending agent, and stabilizer in various pharmaceutical formulations. Its ability to improve the viscosity and stability of liquid and semi-solid formulations makes it an essential ingredient in the production of medications and ointments.
The oil drilling industry is a major user of Xanthan Gum, with a market value of around $349.30 million in 2024. Xanthan Gum is used as a drilling fluid additive to enhance mud viscosity, improve drilling efficiency, and prevent wellbore instability. Its high viscosity and shear-thinning properties make it ideal for maintaining drilling fluid performance under various downhole conditions.
Table Global Xanthan Gum Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
Food | 401.50 |
Pharmaceuticals | 111.37 |
Oil drilling | 349.30 |
Toothpaste | 20.11 |
Skin care / personal care | 70.20 |
Agchem | 84.38 |
Others | 32.65 |
6 Global Xanthan Gum Market Size by Region in 2024
North America is a significant market for Xanthan Gum, with a projected market value of around $359.41 million in 2024. The region’s strong downstream demand, particularly in the food and pharmaceutical industries, drives the market. The U.S. is a major consumer, with a healthy economic outlook and robust demand for processed foods and pharmaceuticals. The market in North America is mature, with high standards for product quality and safety.
Europe is another key region, with a market value of approximately $88.09 million in 2024. The European market is characterized by strong demand in the food and pharmaceutical sectors. The region benefits from advanced technology and a mature industry chain. However, it also faces intense competition and regulatory challenges. The European Union’s stringent regulations on food additives and pharmaceuticals influence the market dynamics in this region.
China is the largest production and consumption market for Xanthan Gum, with a projected market value of around $477.48 million in 2024. The rapid economic growth, technological advancements, and increasing demand from the food and pharmaceutical industries drive the market in China. The country is a major producer and exporter of Xanthan Gum, benefiting from low labor costs and a large domestic market. The government’s support for the development of the biotechnology industry also contributes to the growth of the Xanthan Gum market in China.
Figure Global Xanthan Gum Market Size by Region in 2024
7 Major Players in Global Xanthan Gum Market
7.1 CP Kelco
Company Profile: CP Kelco is a leading global producer of specialty hydrocolloids, with a strong presence in North America and China. Established in 1998, the company has a reputation for innovation and high-quality products. CP Kelco operates manufacturing facilities in the USA and China, catering primarily to North American and Chinese markets.
Business Overview: CP Kelco specializes in the production of various hydrocolloids, including Xanthan Gum, carrageenan, cellulose gum, and gellan gum. These products are used across multiple industries, including food, pharmaceuticals, personal care, and industrial applications. The company’s extensive product portfolio and strong R&D capabilities enable it to meet diverse customer needs.
Product Introduction: CP Kelco’s Xanthan Gum is renowned for its high viscosity and stability, making it ideal for use in food products, pharmaceutical formulations, and industrial applications. The company’s Xanthan Gum products are designed to provide superior thickening, stabilizing, and suspending properties, ensuring consistent performance across various applications.
Recent Financial Performance: In the most recent year, CP Kelco reported a production value of approximately $269.41 million, with a gross margin of 49.32%.
7.2 Fufeng Group
Company Profile: Fufeng Group is a prominent player in the global Xanthan Gum market, with its operations primarily based in China. Established in 1999, the company has grown to become a significant producer of fermentation-based food additives and biochemical products. Fufeng Group operates multiple production facilities in China and exports its products worldwide.
Business Overview: Fufeng Group’s business encompasses the production of Xanthan Gum, glutamic acid, monosodium glutamate, and other biochemical products. The company’s focus on fermentation technology and sustainable practices has enabled it to achieve high production efficiency and product quality. Fufeng Group’s extensive sales network and strong market presence make it a key player in the global Xanthan Gum market.
Product Introduction: Fufeng Group’s Xanthan Gum is known for its high purity and consistent quality. The product is used in various applications, including food processing, pharmaceuticals, and cosmetics. The company’s commitment to quality and innovation ensures that its Xanthan Gum meets the highest industry standards.
Recent Financial Performance: In the most recent year, Fufeng Group reported a production value of approximately $113.40 million, with a gross margin of 29.25%.
7.3 Cargill
Company Profile: Cargill is a multinational corporation that operates in various sectors, including food, agriculture, and industrial products. Established in 1865, Cargill has a global presence with operations in over 70 countries. The company is known for its diverse product portfolio and strong supply chain capabilities.
Business Overview: Cargill’s business spans multiple industries, including animal nutrition, food ingredients, and industrial solutions. The company’s Xanthan Gum production is part of its broader portfolio of food ingredients, which are used in various applications such as salad dressings, baked goods, and pharmaceuticals. Cargill’s extensive R&D and production capabilities enable it to offer high-quality products that meet global standards.
Product Introduction: Cargill’s Xanthan Gum is designed to provide superior thickening and stabilizing properties, making it ideal for use in food and pharmaceutical applications. The company’s focus on innovation and quality ensures that its Xanthan Gum products meet the highest industry standards.
Recent Financial Performance: In the most recent year, Cargill reported a production value of approximately $105.46 million, with a gross margin of 43.14%.