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Xanthan Gum Market Revenue worth US$ 1.5 Bn by 2027

Key Drivers of Xanthan Gum Market

According to the annual statistics of OPEC, 1,214.21 billion barrels of proven crude oil reserves are currently available on a global scale. Of these, more than 82% reserves are under the control of OPEC, with the bulk of OPEC oil reserves in the Middle East amounting to 65.36% of the OPEC total.
Xanthan gum is a high-efficiency, high-quality, and eco-friendly oil drilling mud additive. It is extremely resistant to high temperatures (>=94ฐC), acids, alkalis, and salts.

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Therefore, increase in the demand for crude oil across the world is propelling the demand for xanthan gum.
The global xanthan gum market was valued at ~US$ 915 Mn in 2018, and is anticipated to expand at a CAGR of ~6% from 2019 to 2027.
Newly Discovered and Potential Oil & Gas Reserves to Offer Lucrative Opportunities

Increase in the demand for oil & gas in developing economies such as China, India, and Brazil is a major factor driving the rate of drilling activities. A large numbers of petroleum companies are continuously exploring new oil & gas reserves.
New crude oil & natural gas discoveries and high-potential reserves create opportunities for companies operating in the global xanthan gum market. These new oil & gas discoveries require xanthan gum as a mud treatment agent.
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Availability of Inexpensive Substitutes to Hamper Market

Guar gum is primarily used in ice creams and pastry fillings, while xanthan gum is largely employed in the manufacture of bakery products. Xanthan gum is not suitable for individuals with certain allergies. This is a restraint of the global xanthan gum market.
Guar gum is one of the important substances used during the oil extraction process in an oilfield. Guar gum is employed as a stabilizing, thickening, and suspending agent in drilling fluids. The unique rheological properties, wide compatibility, and superior anti-oxidation effects of guar gum are likely to hamper the xanthan gum market during the forecast period.
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Asia Pacific Dominates Xanthan Gum Market

Asia Pacific is expected to be a highly attractive region of the xanthan gum market during the forecast period. Rapid growth in the population in Asia Pacific is anticipated to significantly contribute to the global food & beverages industry, thereby propelling the global xanthan gum market. Xanthan gum lends texture to food and beverages.
The Middle East & Africa contributes the most in terms of refining capacity additions. These new refineries are offering lucrative opportunities to the xanthan gum market. Xanthan gum is widely employed as an additive in oil field drilling applications.
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Food & Beverages Application Holds Major Share of Xanthan Gum Market

The food & beverages segment accounted for a key share of the global xanthan gum market in 2018. Xanthan gum costs less than guar gum, gum Arabic, and other hydrocolloids. Furthermore, xanthan gum is non-toxic and remains stable at high temperatures and across a wide pH range. It is primarily employed in bakery and dairy products, sauces, and dressings.
The oil & gas segment is likely to create opportunities for the xanthan gum market. Xanthan gum is used in the hydraulic fracking process in oil & gas drilling. It helps gel up fracking water, making it thicker.
Varying Market Share of Companies in Xanthan Gum Market

Prominent players operating in the global xanthan gum market include Fufeng Group Company Limited, CP Kelco, Deosen, JUNGBUNZLAUER SUISSE AG, Dainsco, and MeiHua Holdings, Group Co., Ltd.
Fufeng Group Company Limited operates five production facilities in China. The company distributes its leading products - monosodium glutamate (MSG) and xanthan gum - across China and in more than 90 countries across the globe.
CP Kelco offers a variety of xanthan gum products to meet a wide range of specific thickening, stabilization, and suspension formulation goals. The company manufactures specialty hydrocolloids such as xanthan gum, diutan gum, and gellan gum derived from natural raw materials, for industrial and commercial usage. It has manufacturing facilities in the U.S., Germany, China, Brazil, Finland, Denmark, and the Philippines.
Deosen manufactures and supplies xanthan gum for commercial and industrial applications. It manufactures products in Shandong Province, China, and Inner Mongolia, and distributes them across the globe.
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