August 23, 2017
WELLESLEY, Mass., Aug 23, 2017 – Change and growth in the food and beverage industry – including the demand for gluten-free products and increased consumption of convenience foods – is helping to expand the use of xanthan gum worldwide, according to a report by BCC Research. The global market for xanthan gum is expected to top $972 million by 2022.
While challenged by the presence of cheap alternatives and a lack of government regulations, xanthan gum’s broad applications are helping to fuel growth around the world and in a variety of markets. Besides its use in beverages, mixes, syrups, frozen foods, and salad dressings, xanthan gum is also used as an emulsion stabilizer for pharmaceuticals, a thickener in cosmetics, a stabilizer in animal feed and pesticides, a thickener in slurry explosives, a lubricant in petroleum production, and as a key ingredient in textile printing, dyeing, and enhanced oil recovery, according to the report Xanthan Gum: Applications and Global Markets.
“It owns several remarkable properties such as water solubility, suspension and emulsification, pseudoplasticity, and thickening, says BCC Research report analyst Yojana Jeevane. “These properties have led to xanthan gum’s use in a wide range of applications.”
Xanthan gum is typically produced by the fermentation of a sucrose or lactose in the presence of a bacteria. Once ground into a fine powder, it can be mixed into any liquid to form a gum. Total global consumption of xanthan gum reached 248,578 tons in 2016 and is expected to hit 418,605 tons by 2022. The Asia-Pacific region leads the world in both usage and forecast growth, followed by North America and Europe.
Currently, the food and beverages segment holds a major share of the overall xanthan gum market. The segment was valued at around $446.9 million in 2016 and is expected to reach $634 million by 2022 – an annual growth rate of 6.0% over the forecast period. The report divides the xanthan gum market into four main functions: thickening agent, stabilizing agent, suspension agent, and fat replacer. The global market for xanthan gum as a thickening agent was valued at around $261.7 million in 2016; it is expected to reach $372.8 million by 2022, reflecting an annual growth of 6.1%.
Though the global xanthan gum market shows moderate growth, opportunities for innovation abound, and market players are seeking agreements, mergers, and acquisitions as they pursue increased market share. Key companies in the industry include CP Kelco, Cargill, Fufeng Group, Archer Daniels Midland Company, Jungbunzlauer Suisse AG, Deosen Biochemical Ltd., and MeiHua Holdings Group Co., Ltd.
Factors Impacting Growth
The absence of stringent government regulations on the use of xanthan gum has made it easy for companies to enter the market and commercialize their products. There are also a host of readily available alternatives to xanthan gum, including common products such as flax seed, locust bean gum, gelatin, and chia seeds, many of which are less expensive.
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Xanthan Gum: Applications and Global Markets( AVM149A )
Publish Date: Aug 2017
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