Global xanthan gum market is expected to witness significant growth over the next six years on account of rapid surge in oil & gas industry to meet the energy requirements of the ever growing population. Xanthan gum is primarily used in an enhanced oil recovery (EOR) method for reducing water mobility through increasing viscosity and decreasing permeability.
Global xanthan gum market volume, by application, 2012 - 2020 (Kilo Tons)
Increasing expenditure on technological development in oil & gas sector aimed at increasing production output for crude oil and natural gas has resulted in growing importance of EOR. Oil & gas companies have deployed EOR processes to increase crude oil and natural gas output from depleting reserves. This has resulted in growing demand for xanthan gum, and the trend is expected to continue over the forecast period. Increasing demand for naturally sourced emulsifiers in bakery & confectionery products is expected to drive market growth. Mounting consumption of emulsifiers in salad dressings, peanut butter, chocolate, margarine and frozen desserts is anticipated to propel demand over the forecast period.
Rising importance of naturally derived cosmetic products coupled with increasing awareness towards hazardous nature of synthetic derived personal care products is anticipated to promote the role of xanthan gum. Growing cosmetic industry is anticipated to fuel xanthan gum demand in the formulation of personal care products for inducing thickening and stabilizing characteristics. Favorable regulatory support from European Commission and U.S. FDA for the use of xanthan gum as emulsifiers, stabilizers, thickeners and gelling agents is further expected to provide impetus to market. Asia-Pacific is expected to show above average growth on account of increasing processed foods production and developments in oil & gas production in China and India. Furthermore, the rapid growth of functional foods market is expected to open new avenues for xanthan gum. However, the potential threat of substitute from guar gum is likely to restrain market growth.
Xanthan gum finds applications in food & beverage, oil & gas, pharmaceutical and cosmetic industry. Food & beverage was the largest application segment on account of increasing domestic demand for bakery foods in China, Malaysia, Indonesia, India, and Vietnam. This is expected to fuel market growth over the forecast period. Changing dietary habits and urbanization is expected to drive the global confectionery market which is anticipated to fuel market growth over the next six years. Increasing demand for convenience foods is expected to drive global xanthan gum market on account of globalization, increasing consumer disposable income and shift in consumer preference towards ready to cook meals. Xanthan gum is majorly used in drilling muds for exploration, production and development processes in upstream oil & gas industry. Increasing production capacity of crude oil across the globe is anticipated to be a key driver to fuel xanthan gum market over the next six years. Apart from oil & gas and food & beverage industry, xanthan gum finds application in the cosmetic and pharmaceutical sector as thickening and stabilizing agent.
Asia Pacific was the largest market for xanthan gum in 2013, accounting for more than 55% of global market and is expected to witness lucrative growth as a result of the expansion of food processing industry in the region. Asia Pacific is expected to supplement demand growth on account of rapid economic development in China, India, Indonesia, and Vietnam. Furthermore, supporting government policies in China and India coupled with foreign investments coming up in oil & gas sector in the region is anticipated to boost xanthan gum over the next six years. Growing domestic demand for foods & beverages in emerging markets of BRICS is anticipated to have a positive impact on global food & beverage industry which in turn is expected to witness impressive growth in xanthan gum over the forecast period.
Global xanthan gum market is mainly dominated by key participants including Danisco, Cargill, Jungbunzlauer, Pfizer Inc, Archer Daniels Midland (ADM), Solvay Group, CP Kelco and Fufeng Group Company Ltd. Strategic partnerships and joint ventures among the leading companies is expected to strengthen the global market for xanthan gum over the forecast period. In January 2013, Cargill formed a joint venture with Arasco to manufacture starch and sweetener based products in Saudi Arabia. The joint venture was made to triple production capacity at the Al-Kharj plant to meet growing demand across various end-use industries. In February 2015, Pfizer announced plans to acquire Hospira to increase use of xanthan gum in pharmaceutical applications. In November 2009, Danisco introduced new GRINSTED variety of xanthan gum in five major food categories including savory, beverages, baking, dairy desserts and miscellaneous applications such as meat and processed cheese. Strategic partnerships and joint ventures among the leading companies are expected to strengthen the global market for xanthan gum over the forecast period.
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