WELLESLEY, Mass., Aug. 29, 2017 (GLOBE NEWSWIRE) -- Change and growth in the food and beverage industry – including the demand for gluten-free products and increased consumption of convenience foods – is helping to expand the use of xanthan gum worldwide, according to a report by BCC Research. The global market for xanthan gum is expected to top $972 million by 2022.
While challenged by the presence of cheap alternatives and a lack of government regulations, xanthan gum’s broad applications are helping to fuel growth around the world and in a variety of markets. Besides its use in beverages, mixes, syrups, frozen foods, and salad dressings, xanthan gum is also used as an emulsion stabilizer for pharmaceuticals, a thickener in cosmetics, a stabilizer in animal feed and pesticides, a thickener in slurry explosives, a lubricant in petroleum production, and as a key ingredient in textile printing, dyeing, and enhanced oil recovery, according to the report Xanthan Gum: Applications and Global Markets.
“It owns several remarkable properties such as water solubility, suspension and emulsification, pseudoplasticity, and thickening, says BCC Research report analyst Yojana Jeevane. “These properties have led to xanthan gum’s use in a wide range of applications.”
Xanthan gum is typically produced by the fermentation of a sucrose or lactose in the presence of a bacteria. Once ground into a fine powder, it can be mixed into any liquid to form a gum. Total global consumption of xanthan gum reached 248,578 tons in 2016 and is expected to hit 418,605 tons by 2022. The Asia-Pacific region leads the world in both usage and forecast growth, followed by North America and Europe.
Currently, the food and beverages segment holds a major share of the overall xanthan gum market. The segment was valued at around $446.9 million in 2016 and is expected to reach $634 million by 2022 – an annual growth rate of 6.0% over the forecast period. The report divides the xanthan gum market into four main functions: thickening agent, stabilizing agent, suspension agent, and fat replacer. The global market for xanthan gum as a thickening agent was valued at around $261.7 million in 2016; it is expected to reach $372.8 million by 2022, reflecting an annual growth of 6.1%.
Research Highlights
- The Asia-Pacific region, thanks to technological advancements and developing infrastructure in the oil and gas production industry, dominates the global xanthan gum market.
- In the United States, anti-dumping duties on some imports are expected to boost the domestic market.
- Demand is seen to be particularly strong in China and India, where the desire for convenience foods is rising and consumers are becoming more familiar with the product.
Though the global xanthan gum market shows moderate growth, opportunities for innovation abound, and market players are seeking agreements, mergers, and acquisitions as they pursue increased market share. Key companies in the industry include CP Kelco, Cargill, Fufeng Group, Archer Daniels Midland Company, Jungbunzlauer Suisse AG, Deosen Biochemical Ltd., and MeiHua Holdings Group Co., Ltd.
Factors Impacting Growth
The absence of stringent government regulations on the use of xanthan gum has made it easy for companies to enter the market and commercialize their products. There are also a host of readily available alternatives to xanthan gum, including common products such as flax seed, locust bean gum, gelatin, and chia seeds, many of which are less expensive.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.