Global Xanthan Gum Market Analysis| Coherent Market Insights

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2. GLOBAL XANTHAN GUM MARKET ANALYSIS Global Xanthan Gum Market,byForm (Dry & Liquid), by Function (Thickeners, Stabilizers, Fat Replacers, Coating Materials, Gelling Agents, and Others), by End-use Industry (Food & Beverages, Pharmaceutical, Oil & Gas, Agrochemicals, Paints & Coatings, and Others), and By Geography - Insights, Size, Share, Opportunity Analysis, and Industry Forecast till 2025

3. Market Insights • Xanthan gum is a polysaccharide, commonly used as a food additive, stabilizer, and thickening agent. Xanthan gum, as a stabilizing agent, prevents the separation of food ingredients and is majorly used in gluten-free bakery products. Xanthan gum is highly soluble in cold as well as hot water, and is capable of absorbing more water in excess to its own weight, thus forming a gel. These solutions are associated with various properties such as pseudoplasticity, high viscosity, and inertness towards a wide range of pH, temperature, and electrolyte variations.

4. Xanthan being a non-hazardous additive, which is associated with various nutritional characteristics, along with high carbohydrates and fiber content, has its wide application in the food and beverages industry. Increasing demand for food and beverages is in turn, propelling growth of the xanthan gum market. Furthermore, growing demand for gluten free food products, growing inclination towards convenience food, and the multi-functionality of xanthan gum are some of the other factors contributing to growth of the global xanthan gum market. • Availability of substitute products such guar gum coupled with the high cost of xanthan gum pose as major restraints for growth of the xanthan gum market. Moreover, anti-dumping policies associated with xanthan gum also hinder growth of the xanthan gum market.

5. Regional Analysis • In 2016, North America was the leading region with a market share of 35% in the market and is expected to be the dominant region during the forecast period. The main factors for the increasing dominance of North America in xanthan gum market is the growing oil & gas industry along with soaring demand for petroleum since 1850s in the U.S. Also the U.S. helds the largest market share for xanthan gum in North America and is one the largest consumer of oil and gas in the world. For instance, according to Energy Information Administration (EIA), in 2015, the U.S. production of natural gas increased for the tenth consecutive year with a rise of 4% from 2014. Moreover, rising awareness about health benefits of xanthan gum is pushing consumers to adopt it and thus propelling growth of xanthan gum market in North America.

6. Asia Pacific is estimated to be the largest region for xanthan gum market during the forecast period, and will witness a CAGR of 4.09%, one of the highest in the market. The major factors for growth of xanthan gum market in Asia Pacific is the robust growth of the food processing industry in the region. Additionally, rising geriatric population and increasing expansion of pharmaceuticals industry is expected to boost growth of the xanthan gum market in Asia Pacific. For instance, according to World Bank the geriatric population in East Asia was over 211 million in 2010, out of which China accounted for 130 million geriatric population. Moreover, rapid adoption of modern technologies for oil & gas production and infrastructure developments in emerging economies such India and China are expected to drive growth of the xanthan gum market in the near future.

7. Market Segmentations Among end users, the food and beverage segment held a major market share in 2016 and is expected to retain its dominance throughout the forecast period. Wide application of xanthan gum in gluten-free bakery products such as cakes and pancakes, cookies, salad dressings, quick breads, and muffins, is one of the major factors driving demand for xanthan gum in the food and beverage industry, in turn boosting market growth.

8. Figure1. Global Xanthan Gum Market Share, by End-use Industry, 2016

9. Competitive Section Some of the key players operating in the xanthan gum market are CP Kelco, Cargill Inc., E. I. Du Pont De Nemours and Company, Fufeng Group Company Ltd., FMC BioPolymer, Archer Daniels Midland Company, Fuerst Day Lawson, Zoranoc Oilfield Chemical Co., Ltd, and Ingredion Incorporated.

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