Food Grade Xanthan Gum Market to Top US$ 500 Mn in 2030; Reduced Demand from Food & Beverage Industry Due to COVID-19 Pandemic Impeding Growth

Published On : Jan 22, 2021

Xanthan gum is gaining traction in the food & beverage industry owing to its unique pseudo-plastic properties that are desirable in different segments such as sauces and dressings, bakery, confectionery, and others. Surge in demand for food grade xanthan gum from key players engaged in food manufacturing can be attributed to its multifaceted functional properties that provide a premium texture to differently-processed foods.

Demand for food grade xanthan gum from a range of food industries is expected to witness an upward trend over the forecast period, owing to constant efforts taken by key players to offer food grade xanthan gum with increased functionality, coupled with surge in demand for processed food products because of multiple socio-economic factors and preferences. Taking these factors into consideration, the global food grade xanthan gum market is expected to witness a steady volume CAGR of more than 4% through 2030.

Key Takeaways from Food Grade Xanthan Gum Study

  • The regions of North America and Europe are expected to have major influence on the global food grade xanthan gum market, together accounting for a value share of approximately 50% in 2020, owing to increasing penetration of bakery and confectionery products in these regions. Developing markets of India and China are expected to exhibit robust CAGRs above 7%, owing to rapidly developing economies and food industries in these regions.
  • Among the applications, the thickeners segment is estimated to be dominant in the global food grade xanthan gum market, with a market share of more than 40% in terms of volume by the end of 2020. This is attributed to multiple products requiring thickeners as an additives.
  • The application of food grade xanthan gum in the bakery & confectionery industry is expected to hold more than 30% of the market value share in the year 2020, attributable to dominance of this segment over others, owing to the sheer volume of production of bakery & confectionery products.

The food grade xanthan gum industry is expected to witness high incremental opportunity in the bakery & confectionery sector, owing to increased application as a viscosity enhancer and gelling agent to impart desired texture and sensory properties. Manufacturers can target this segment to create room for increased opportunities,says a PMR analyst

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Global Food Grade Xanthan Gum Market: Competitive Landscape

Key players in the food grade xanthan gum market space are focusing on the product expansion strategy to keep up with innovation and growth in different segments of the food & beverage industry. Manufacturers are also working toward better product planning to offer xanthan gum at competitive prices with increased functionality.

  • In 2018, Euroduna Food Ingredients GmbH partnered with AM Nutrition Services, a U.S.-based manufacturer of protein, starches, hydrocolloids, and fiber ingredients. This partnership was initiated with an aim to expand its product portfolio to strengthen its position in the global food & beverage market.
  • In 2017, Fiberstar Inc. expanded its product portfolio with the launch of clean label microbial hydrocolloid solutions. This new range was specially initiated for beverage products that provided desired functionalities such as texture, emulsification, stabilization, and pulp extension, to replace ingredients such as carrageenan, gums, and starches in clean-label beverages.

Apart from this, key players engaged in the production of food grade xanthan gum are also focusing on strategic expansion of their business through alliances/partnerships, mergers, acquisitions, and expansions, to increase their market presence and product offerings.

  • In April 2018, Nestlé Health Science S.A. set up two new hydrocolloid production units in Taizhou, China. This expansion was done with an aim to expand its presence in the East Asian region, so as to cater to ever-increasing demand in this region.
  • In 2018, Archer Daniels Midland Company acquired a total of 6 companies, including Neovia sarl, Florida Chemical Company, Inc, Rodelle S.A., Probiotics international Limited, Aston Food, and Algar Agro. With the acquisition of these companies, Archer Daniels Midland Company intends to improve its existing product portfolio and expand its global presence.

Explore More Valuable Insights on Food Grade Xanthan Gum Market

Persistence Market Research, in its new report, offers an impartial analysis of the global food grade xanthan gum market, presenting historical data (2015-2019) and estimation statistics for the period of 2020-2030. The study offers compelling insights on the food grade xanthan gum market based on application (thickeners, stabilizers, and texturizing agents), end use (bakery & confectionery, meat & poultry, sauces & dressings, beverages, dairy products, and others), and distribution channel (business to business and business to consumer), across seven regions.

For additional insights on how the food grade xanthan cum market will shape up over the next decade, write to

About Food & Beverage Division at Persistence Market Research

The Food and Beverages team at Persistence Market Research provides all the necessary insights and consulting analysis to fulfill the unique business intelligence needs of clients worldwide. With a catalog of more than 500 reports pertaining to the latest statistics and analysis from the food & beverage industry, the team is happy to help with every business intelligence research and consulting requirement.


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