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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.

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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.

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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.

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.

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