Xanthan Gum Market - By Application (Food & Beverages, Oil & Gas, Pharmaceutical, Cosmetics, and Others) & Forecast, 2022-2030

Industry Overview

Xanthan Gum Market size surpassed USD 650 million in 2021 and is expected to exhibit a CAGR of over 5.5% between 2022 and 2030. The introduction of government subsidies to boost oil output will accelerate the overall market growth.
 

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Xanthan gum is being widely adopted as an ideal additive in oil and gas drilling and other applications, due to its thickening, pollution resistance, and salt resistance attributes. This oilfield treatment agent also has a significant impact on tertiary oil or fluid recovery. In 2021, over 23.9 million barrels of oil were produced per day in North America, a slight increase from 23.5 million barrels produced per day in 2020. This gradual rise in oil and gas output will augment the need for xanthan gum used in oilfields.
 

Likewise, xanthan gum is beneficial for use as an additive in drilling fluids, given its resilience to thermal deterioration and good compatibility with salts. Over the years, governments have been introducing huge subsidies for the oil and gas sector, mainly in the form of tax incentives. According to data from the International Monetary Fund, oil, natural gas, and coal received USD 5.9 trillion in subsidies in 2020. Such initiatives will encourage consumers to purchase these fuels and generate lucrative opportunities for the xanthan gum market development.
 

Availability of substitutes to hinder the xanthan gum market landscape

Xanthan gum, a unique by-product of fermented sugar, is utilized as a popular additive for gluten-free baking. It has strong binding properties that help replace gluten in the bakery sector. However, some brands may not be completely gluten-free, with trace amounts available in the product. Several health issues have also been associated with its consumption. These factors, along with the availability of xanthan gum substitutes such as corn starch, may create a hindrance to steady market growth.
 

Adoption of xanthan gum as a stabilizer and thickener to rise in the food and beverage sector

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Based on application, the xanthan gum market is divided into oil and gas, food and beverages, cosmetics, pharmaceuticals, and others. The food and beverages segment is projected to register more than 160 kilo tons in volume by 2030, since xanthan gum is used as an additive in processed foods such as dairy products and frozen foods. Given its compatibility with synthetic and natural substances, it is also adopted as a stabilizer and thickening agent. Other factors including textual resemblance to wheat and other grains also contribute to its adoption in gluten-free snacks.
 

Additionally, the others segment recorded over 15 kilo tons in 2021, which was attributable to the widespread usage of xanthan gum in skincare and fragrances, among other personal care applications. Its key functions in personal care and hygiene products include binding, thickening, stabilizing, and skin conditioning. It is also known to help the components stay suspended in other substances, further contributing to segmental demand.
 

Rising emphasis on quality cosmetic preparations to expedite the APAC industry expansion

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Asia Pacific xanthan gum market is set to cross USD 470 million by 2030. This is driven by the rising competitiveness of cosmetic industry players and the strong demand for quality skin conditioning agents. Consumers in the region are also shifting towards quality cosmetic preparations due to the high awareness regarding dermatological conditions. Xanthan gum can help retain moisture in the skin and lower the incidence of wrinkles, fine lines, and patches, which may contribute to regional industry demand.
 

Partnerships to remain a key strategy for xanthan gum market players

Cargill, Incorporated, DuPont Danisco, Solvay, The Archer-Daniels-Midland Company, CP Kelco, and Hebei Xinhe Biochemical Co. Ltd. are some of the prominent market players. These firms are mainly focusing on business expansions, collaborations, and new product range developments to strengthen their footprint across the global market.
 

For instance, in September 2021, CP Kelco extended its distribution partnership with Azelis in New Zealand and Australian markets. Under the collaboration, Azelis intended to distribute CP Kelco’s product lines including KELTROL Xanthan Gum, for food and other applications.
 

Impact of COVID-19 on the Xanthan Gum Market Outlook

The COVID-19 outbreak has posed unprecedented impacts on the global industry landscape, especially in the initial months. The oil and natural gas sector, however, has undergone a significant recovery in the United States. For example, the drilling rig count of Baker Hughes surged from 231 in August 2020 to 758 in July 2022, with crude oil production rising by 10%. This increasing oil output and drilling activities will bolster the adoption of xanthan gum in oil and gas production and strengthen industry demand over the coming years.
 

The Xanthan Gum market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in tons and revenue in USD Thousand from 2017 to 2030 for the following segments:

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By Application

• Oil & gas
• Pharmaceutical
• Food & beverages
• Cosmetics
• Others

The above information is provided on a regional and country basis for the following:

• North America
  • U.S.
  • Mexico
  • Canada
• Europe
  • Germany
  • Italy
  • UK
  • France
  • Spain
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
• Latin America
  • Brazil
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa