Xanthan gum is a polysaccharide that is obtained by the fermentation of a starch substrate by bacterium Xanthomonas campestris. Xanthan gum is a hydrocolloid in nature, which mean that, with the addition of water, it will bind to the available water and absorb it, creating a thick slurry output. This presents itself to be the most desirable property of food grade xanthan gum in the food industry. Xanthan gum is extensively used in the food and beverage industry for multiple purposes - as a thickener, stabilizer, and as a texturizer in bakery products as well. The use of food grade xanthan gum has been on the rise in recent years, owing to manufacturers realizing the multifaceted benefits of using food grade xanthan gum in their food products.
Widespread use of food grade xanthan gum as a thickener is an important driving factor boosting demand for food grade xanthan gum from food manufacturing verticals
In terms of volume of food grade xanthan gum, the thickeners segment exhibits dominance over the other segments on the basis of function. This can be attributed to the use of food grade xanthan gum as a thickener in multiple product categories such as sauces & dressings, dairy products, beverages, and others. The others segment includes products such as dairy alternatives, specialty beverages, etc. The increase in the number of people preferring dairy alternatives over dairy products has been evident in recent years. This trend continues to impact the demand for food grade xanthan gum in the market in a positive way. Dairy alternatives in most forms require the addition of a thickener to obtain the desired consistency, since milk substitutes are harder to manipulate in terms of texture and viscosity.
Global healthy food ingredients trend impacting food grade xanthan gum market
The growing demand for food grade xanthan gum as a bakery additive, is, in part, fueled by the gluten-free movement in developed countries, and recently in some developing regions as well. This includes regions such as North America, Europe, and APAC, where gluten-free products are trending. This movement affects the demand for food grade xanthan gum in the market because food grade xanthan gum essentially replaces gluten in the food product, providing the desired texture that was earlier tedious to achieve.
In terms of value, the global food grade xanthan gum market is expected to represent an absolute incremental opportunity of US$ 106.60 Mn by 2028 end over 2018. By function, the thickeners sub-segment is expected to exhibit a healthy CAGR of 4.3% over the forecast period. All the function sub-segments are expected to hold relatively similar market shares by value over the forecast period. This is due to already pre-established manufacturing processes and protocols incorporating food grade xanthan gum in various products.
Food Grade Xanthan Gum Market: Drivers & Restraints
Macroeconomic factors that are driving the market for food grade xanthan gum forward in terms of value and volume are increasing the need for processed foodstuff and fast food products. Additives such as food grade xanthan gum are an essential part of the food processing chain for stabilization purposes. Hence, the demand for food grade xanthan gum correlates directly with the demand for fast food and processed foodstuff.
Non-invasive nature of food grade xanthan gum a highly sought after property in food additives
The increasing preference for food grade xanthan gum from manufacturers for processed food also arises from the fact that, food grade xanthan gum is one of the least invasive additives in terms of flavor and odor. This neutral flavor profile of food grade xanthan gum is beneficial, as it provides all the textural requirements of the food products without any interference to their organoleptic properties that might lead to consumer dissatisfaction. In addition to being a minimally-invasive food additive, food grade xanthan gum is also a certified organic additive, making it suitable for addition in certified organic products without any hassle. The trend for organic foodstuff has been on the rise for quite a while now, and with it, the demand for certified organic additives to match the organic positioning of a food product.
Pre-established manufacturing protocols can be a hurdle for food grade xanthan gum demand in future
Traditional additives already in use are proving to be an obstacle for food grade xanthan gum. Since manufacturers already have set parameters for the production of a certain food product, replacing it with a substitute like food grade xanthan gum is going to take a while, despite its multiple benefits. This can prove to be a hurdle for the growth of the food grade xanthan gum market.
Food Grade Xanthan Gum Market: Analysis by Region
Based on the regional analysis of the food grade xanthan gum market, APAC is expected to dominate the global food grade xanthan gum market through 2028. Following APAC, North America is a prominent region by value in the food grade xanthan gum market. This is majorly attributed to a highly established food and beverage industry in the region. APAC is expected to gain significant market share in terms of value and volume over the forecast period, owing to a sprawling and fastidious food and beverage industry, and the growing demand for processed food products in the region. Moreover, the business to consumers segment is expected to gain significant market share in the food grade xanthan gum market in developing regions such as APAC and Latin America, with the increased availability of specialty stores and online retail formats providing additives such as food grade xanthan gum.
Xanthan gum is a polysaccharide, essentially a type of sugar that is produced/ manufactured by bacterial fermentation. The organism that is utilized in the fermentation process of food grade xanthan gum is Xanthomonas campestris. The bacterium is usually considered a threat for cruciferous vegetables such as cabbage, Brussel sprouts, etc., but is utilized in the industrial fermentation of starches to produce food grade xanthan gum as the product.
In the food industry, food grade xanthan gum has been utilized as a food thickener and as a stabilizer in multiple food products. The appeal of the use of food grade xanthan gum originates from the multifunctional properties that are stable over a wide range of physiological factors such as temperature and pH. When food grade xanthan gum is used as a stabilizer in food products, the same properties helps to maintain the desired texture of the food product over a longer period of time. This results in the longer shelf life of the product, which, of course, is one of the prominent factors of importance for any processed food product.
Food Grade Xanthan Gum Market: Report Insights
The food grade xanthan gum market report illustrates data for 2018 (estimated) to 2026 (the forecast year), in terms of both, volume in MT and sales revenue in US$. The report comprises various forecast factors that impact the growth of the food grade xanthan gum market. Market dynamics such as opportunities, drivers, trends, and restraints have also been included in the food grade xanthan gum market report.
The food grade xanthan gum market report also includes additional information such as opportunity pockets for the manufacturers of food grade xanthan gum market, global economic outlook, perceived benefits from food grade xanthan gum, key regulations in various regions, major trends in the food and beverage industry, an outlook of the food additives industry, forecast factors, and recent developments in the food grade xanthan gum market.
Various secondary and primary sources were consulted during the course of the study. Secondary sources include annual reports_bk_01_01_2020 of major companies, recent publications, Factiva, and Hoovers. The report also includes a detailed pricing analysis of food grade xanthan gum for every region.
The report includes a detailed and descriptive competition dashboard, which gives an overview of the companies that have been profiled. The regional presence of companies, revenue, product offerings, headquarters of companies, and the intensity of product types, ranging from high to low, are the points that are mentioned in the competition dashboard.
Food Grade Xanthan Gum Market: Regional Outlook
On the basis of segmentation by region, the food grade xanthan gum market is segmented into five main regions: North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. Among these regions, Asia-Pacific region holds the highest share in the food grade xanthan gum market, which is largely due to a large and growing food and beverage industry in the region, and the higher requirement of food. Following Asia-Pacific, North America take the second spot in the global food grade xanthan gum market, also owing to the large and established processed food industry and the growing consumption of processed foodstuff in the region. APAC is expected to gain significant value share in the food grade xanthan gum market through the forecast period, as the food and beverage industry in this region is still thriving. Since China is a major producer of food grade xanthan gum, this gum makes for a logical and economically feasible choice of additives for the food industries in the APAC region.
Food Grade Xanthan Gum Market: Competition Analysis
A comprehensive competition analysis of the major companies in the food grade xanthan gum market has also been provided in the report. This will help readers in evaluating the long-term and the short-term strategies, various product offerings, and recent developments in the food grade xanthan gum marketplace. Some of the key players in the food grade xanthan gum market are Cargill Incorporated, DowDuPont, Inc., Ingredion Inc., Archer Daniels Midland Company, Ashland Global Holdings Inc., Tate & Lyle PLC, Jungbunzlauer Holding AG, Nestlé Health Science S.A., Fuerst Day Lawson Limited, CP Kelco, Lubrizol Corporation, Fiberstar, Inc, Fufeng Group Company Ltd, etc.
Food Grade Xanthan Gum Market: Segmentation
The subsequent sections analyze the global food grade xanthan gum market on the basis function, end use, distribution channel, and region, and presents a forecast for the period 2018–2028. The market is segmented as follows:
Food Grade Xanthan Gum Market by Application
Food Grade Xanthan Gum Market by End Use
Food Grade Xanthan Gum Market by Distribution Channel
Food Grade Xanthan Gum Market by Region
PMR Research Methodology
PMR is committed to providing unbiased market research solutions to its clients. PMR follows a robust methodology for deducing the data that is included in this report. A demand-side approach is followed to estimate the sales of target products, followed by in-depth supply-side assessment of value generated, key trends, and events over a predefined period. This methodology is based on the use of standard market structures, methods, and definitions that are based on inputs from local sources in over 5 regions, i.e. Europe, Asia Pacific, the Middle East and Africa, Latin America, and North America, which PMR considers for segmenting the global market. Statistics, characteristics, and variances are collected at a regional level, aggregated at the same level, and then synthesized at a worldwide level to create global market measurements. Our main sources of research include,