Xanthan Gum market review 2023 [Global Report]

Xanthan Gum market

The Xanthan Gum market is expected to grow from  754.80 million USD in 2024 to 996.30 million USD by 2029, at a CAGR of 5.71%. Derived from sugar and bacteria, Xanthan Gum is a key ingredient in the food industry known for its thickening, stabilizing and texture enhancing properties. Its versatile applications include baked goods, fruit juices, soups, ice cream, sauces and gluten-free products. Regulatory approvals, such as FDA approval of Xanthan Gum for direct consumption, are driving market expansion. Moreover, Xanthan Gum is a preferred substitute for hydrocolloids of animal origin due to its compatibility with vegan, vegetarian, halal and kosher diets. The market penetration is further driven by the efforts of industry leaders for product innovation, expansion and strategic collaboration. An example of this is the expansion of bio-rubber production by CP Kelco in 2022.

Q1

In the first quarter of 2023, the price of Xanthan Gum remained high at 12600 EUR/MT despite a slight decline at the end of January. The high demand, driven by consumer interest in natural additives, continued among food, cosmetics and pharmaceutical manufacturers. At the end of March, the price had fallen to 9800 EUR/MT, reflecting the volatility of the market with continued interest in Xanthan Gum.

Q2

Demand for Xanthan Gum increased in the second quarter of 2023, particularly in the food and cosmetics sector. The price started at 9700 EUR/MT in April and fell to 7650 EUR/MT by the end of the quarter. Despite the initial price drop, the strong demand was supported by the barbecue season and the growing interest in healthy eating. Demand also increased in other sectors, such as paint and adhesive production, underlining the versatile use of Xanthan Gum.

Q3

In the third quarter of 2023, the market for Xanthan Gum was stable, despite a slight price decline from 7500 EUR/MT at the beginning of July to 7000 EUR/MT in September. The summer season brought a drop in demand, mainly from food manufacturers who reduced their production for the vacation season. However, it remained at a satisfactory level, so that prices remained relatively stable.

Q4

Xanthan prices rose in the fourth quarter of 2023, particularly in October. Price increases by Chinese manufacturers had an impact on global prices, and increased demand for the raw material in the run-up to the holidays caused a temporary rise. Nevertheless, the quarter ended with a decline to 5450 EUR/MT in December. Nevertheless, demand remained high due to continued interest in the raw material from food, cosmetics and pharmaceutical manufacturers.

Summary

In 2023, the market for Xanthan Gum was characterized by stable demand and price volatility, reflecting its importance in the food, cosmetics and pharmaceutical industries. Prices fluctuated from 12600 EUR/MT at the beginning of the year to 9800 EUR/MT in March, then fell to 7650 EUR/MT in Q2 before stabilizing and rising again in Q4 due to pre-vacation demand and pricing actions by Chinese manufacturers. Despite these fluctuations, demand for Xanthan Gum remained strong throughout the year.

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