Xanthan Gum Market To Reach a Value Of US.25 Bn By 2024
The global xanthan gum market is dominated by a handful vendors, as reported by Transparency Market Research (TMR). With a positive growth trajectory, the global xanthan gum market has a consolidated business landscape. Currently, the market is Fufeng Group Co. Ltd., CP Kelco, and Deosen are the top 3 vendors operating in the industry. In 2015, these vendors held more approximately 58% share of the overall market share. This situation is likely to remain stable over the forecast period. Vendors are seen keenly focusing on supply chain integration as a technique to maximize production efficiency and profits.
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Established vendors in the global xanthan gum market are anticipated to undertake several organic and inorganic growth strategies over the forecast period in order to gain momentum. A key strategy among these is expansion of their product portfolio. The players are seen offering both cost effective alternatives in addition to premium products to capture the attention of middle class consumers. Another leading strategy taken up by prominent vendors is enlarging production capacities. This is expected to lower product price, and amplify sales in the global xanthan gum market in the forthcoming years.
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TMR predicts that the global xanthan gum market will demonstrate a 7.70% CAGR over the forecast period of 2016 to 2024. The market was valued to be worth US1.5 mn in 2015, and is projected to reach a value of US.25 bn by 2024, the end of the forecast duration. In terms of volume, the global xanthan gum market is prognosticated grow at a CAGR of 7.3% over the forecast period.
Trend of Gluten Free Food to Amplify Demand in Xanthan Gum Market
Several food products such as cakes, pancakes, cookies, quick breads, muffins, piazza dough etc. use xanthan gum for producing gluten-free items. In pizza dough, especially, xanthan gum is used in large quantities. Xanthan gum is nutritionally rich in fiber and carbohydrates, which further boosts the product’s adoption. Gluten freed food products are finding higher acceptance among consumers, on account of rising awareness regarding intolerance and allergies. This rapidly emerging trend of gluten free food is likely to bolster the global xanthan gum market in the forthcoming years.
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However, there are some factors that could restrain the xanthan gum market to some extent. Some allergies are associated with xanthan gum, which may reduce chances of adoption. Further, the availability of substitutes such as guar sugar may hamper market demand, especially in the bakery segment.
Emerging Regions to Pose Rich Opportunity to Xanthan Gum Market
Brisk industrialization in developing regions such as the Asia Pacific, South America, and the Middle East and Africa is expected to bode well for the global xanthan gum market. Asia Pacific offers rich growth potential in the form of novel investments across several end-use industries such as pharmaceutical, food and beverage, and consumer goods. The rising standards of living in the region, growing personal care awareness, and improving lifestyles coupled with rising disposable incomes are anticipated to bolster the regional growth. The Middle East and Africa region is bolstered by continuous research and development in the field of hydrocolloids. This is a key factor fuelling the regional xanthan gum market. With a rising number of hotels, restaurants, and eateries, the food and beverage sector in South America is witnessing a revolution. This is likely to impel growth in the South America xanthan gum market.
The accelerated growth of the xanthan gum market in these regions cumulatively is expected to augur well for the global market at large. These regions offer a lucrative growth opportunity to vendors operating in the global xanthan gum market.
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