The Xanthan Gum Market is to Touch $2.35 Billion by 2030; The increasing demand for Xanthan Gum across various industries such as food & beverages, oil & gas, personal care, medical propels market growth.

The Xanthan Gum Market size is estimated to reach $2.35 Billion by 2030, growing at a CAGR of 6.2% during the forecast period 2023-2030, according to a recent report published by IndustryARC, titled, “Xanthan Gum Market – By Function (Thickening Agent, Stabilizing Agent, Suspending Agent, Fat Replacer, Others), By Application (Food & Beverages, Oil & Gas, Personal Care, Medical, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030”

Increasing demand for clean-label ingredients and rising applications in gluten-free and low-calorie foods are fueling the growth of the Xanthan Gum industry during the forecast period.

Asia-Pacific accounted for the largest share of more than 41% in 2023 of the Xanthan Gum market driven by a combination of factors including rapid industrialization, population growth, and increasing demand across various sectors such as food & beverage, pharmaceuticals, and oil & gas. The region's booming food industry, particularly in countries like China, India, and Japan, has played a pivotal role in this growth. Xanthan gum is widely used as a stabilizer, thickener, and emulsifier in sauces, dressings, and processed foods, which are becoming more prevalent in the growing middle-class population. Additionally, the rising adoption of gluten-free and low-calorie diets in urban areas, coupled with the increasing demand for convenience foods, has further propelled its usage. Moreover, the pharmaceutical and personal care industries in Asia-Pacific are expanding, contributing to higher demand for xanthan gum as a key ingredient in cosmetic formulations and medical products. Industrial applications, particularly in the oil and gas sectors of China and Southeast Asia, also contribute to the region’s dominance, as xanthan gum is used in drilling fluids due to its excellent viscosity and stabilizing properties.

Consumers are increasingly conscious of the ingredients in their food, leading to a growing preference for clean-label products—those made with simple, recognizable, and natural ingredients. Xanthan gum, derived from fermentation of sugar, fits well into this trend as a natural additive and thickening agent. Its use as a clean-label stabilizer appeals to manufacturers looking to reduce synthetic chemicals in their formulations. The trend is particularly strong in regions such as North America and Europe, where consumer awareness is high. This demand has led food manufacturers to use xanthan gum as a replacement for other synthetic emulsifiers and thickeners, enhancing its presence in processed foods, gluten-free products, and organic foods. This trend is expected to continue, bolstered by stricter regulatory requirements and labeling laws, further driving the market growth. In December 2020, fortunately for dairy processors looking to clean up their labels, lots of stabilizers, emulsifiers and xanthan gums fit the bill. For example, in the emulsifier category, Cargill offers a “more label-friendly” sunflower or canola lecithin, which can be used instead of mono- and diglycerides, says Nava.

The prevalence of celiac disease and gluten intolerance, along with the growing health-conscious population, has increased demand for gluten-free and low-calorie foods. Xanthan gum is essential in gluten-free formulations as it helps mimic the texture and elasticity that gluten provides in baked goods. Its ability to stabilize and thicken without adding calories also makes it a preferred choice for low-calorie and keto-friendly products. For example, KELTROL® Xanthan Gum, from CP Kelco, is a high molecular weight polysaccharide produced by fermentation of Xanthomonas campestris. The composition and structure of the xanthan gum produced by commercial fermentation is identical to the naturally occurring polysaccharide formed on plants belonging to the cabbage family, where it occurs naturally. KELTROL® acts as a binder, improving the moisture retention and shelf life of baked goods. It is commonly used in gluten-free and low-fat formulations to compensate for the lack of gluten and fat, contributing to the overall quality of the final product. This trend is expected to drive market growth as manufacturers continue to innovate gluten-free and health-focused food products. The increasing market share of gluten-free baked goods, cereals, and sauces is directly influencing the demand for xanthan gum, positioning it as a crucial ingredient in the healthy-eating space.