Xanthan Gum Market By Type (Synthetic Xanthan Gum and Natural Xanthan Gum), By Form (Dry and Liquid), By Sources (Fruits and Vegetables, Oils, Nuts and Seed, Spices and Herbs, Petroleum & Gallic Acid), By Application (Fats and Oils, Prepared Foods, Prepared Meat & Poultry, Beverages, Bakery and Confectionary, Seafood & Other Food Products), By Region, By Competition Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 674.34 Million
CAGR (2026-2031)	5.61%
Fastest Growing Segment	Natural Xanthan Gum
Largest Market	Asia Pacific
Market Size (2031)	USD 935.64 Million

Market Overview

The Global Xanthan Gum Market will grow from USD 674.34 Million in 2025 to USD 935.64 Million by 2031 at a 5.61% CAGR. Xanthan gum is a high-molecular-weight polysaccharide produced through the aerobic fermentation of sugars by the bacterium Xanthomonas campestris, functioning primarily as a thickening agent, stabilizer, and rheology modifier. The market is experiencing sustained expansion driven by the rising global demand for gluten-free bakery products, where it serves as a critical structural substitute for gluten, as well as its extensive utilization in the oil and gas sector for optimizing drilling fluid viscosity. These drivers are distinct from broader wellness trends, focusing specifically on functional ingredient necessity in food formulation and industrial drilling efficiency.

However, the sector faces hurdles related to international trade volatility and fluctuating export volumes which can disrupt supply chain stability. According to the China Chamber of Commerce of Medicines & Health Products Importers & Exporters, in January 2025, the export volume of xanthan gum from the leading production region decreased to 18,800 tons, representing a year-over-year decline of approximately 8.09% amidst shifting global demand. Such fluctuations in trade volume present a logistical and financial challenge for manufacturers aiming to maintain consistent pricing and availability in international markets.

Key Market Drivers

Surging demand for gluten-free bakery and food products is fundamentally reshaping the global xanthan gum market, as the ingredient has become indispensable for replicating the viscoelastic properties of gluten in wheat-free formulations. In the absence of gluten's structural network, xanthan gum provides the necessary elasticity and gas retention capabilities required for high-quality breads and pastas, while also functioning as a critical stabilizer in processed sauces to prevent phase separation. This functional necessity has cemented the food sector's position as the primary consumer of the hydrocolloid. According to BSH Ingredients, in 2025, the food and beverage industry dominated global demand, consuming approximately 92,250 metric tons of xanthan gum. This volume highlights the extensive reliance on the ingredient for maintaining texture and shelf-life in modern convenience foods.

The expansion of oil and gas drilling and exploration activities further propels market growth, utilizing xanthan gum's unique rheological properties to optimize drilling fluid performance. In this industrial application, the biopolymer serves as a primary viscosifier that exhibits shear-thinning behavior, allowing drilling muds to flow easily during pumping while instantly thickening when static to suspend drill cuttings and prevent hole collapse. This capability is particularly vital for horizontal and deep-water drilling operations where hole cleaning is technically demanding. The resurgence in exploration activity is evident in recent operational data; according to Baker Hughes, in November 2025, the international rig count increased to 1,073 active units, reflecting a month-over-month rise of 14 rigs. This uptick in drilling infrastructure directly correlates to sustained industrial orders, contributing to a total global market volume that, according to BSH Ingredients, reached 205,000 metric tons in 2025.

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Key Market Challenges

International trade volatility and the resulting fluctuations in export volumes constitute a formidable barrier to the sustained growth of the Global Xanthan Gum Market. This instability directly hampers market expansion by creating a precarious supply chain environment where manufacturers cannot accurately forecast demand or optimize production schedules. When trade flows are erratic, producers are forced to adopt conservative inventory strategies to mitigate financial risk, which delays necessary capital expenditures for capacity expansion and innovation. Furthermore, the inability to guarantee consistent supply volumes erodes the confidence of large-scale industrial buyers, particularly in the oil and gas sector, potentially driving them toward more stable synthetic alternatives.

The severity of this trade disruption is evident in recent industry performance figures that indicate a worsening trend beyond the initial start of the year. According to the China Chamber of Commerce of Medicines & Health Products Importers & Exporters, in February 2025, the export volume of xanthan gum dropped further to 14,000 tons, marking a significant year-over-year decline of 16.42%. This sharp contraction highlights the deepening logistical challenges facing the sector. Such unpredictability not only affects immediate revenue streams but also stifles the long-term strategic planning required to meet the rising global necessity for functional ingredients.

Key Market Trends

The Expansion of Certified Organic and Non-GMO Offerings is reshaping the supply landscape as manufacturers aggressively localize production to meet strict sustainability mandates. This trend is characterized by the construction of dedicated facilities in North America designed to produce biodegradable biogums, thereby reducing the carbon footprint associated with trans-oceanic imports. Demonstrating this shift, according to Invest Ontario, September 2024, in the 'Jungbunzlauer invests $200 million to build Canada's first xanthan gum manufacturing facility' press release, the company committed CAD 200 million to construct a plant explicitly targeting the production of natural, carbon-neutral grades for the regional food sector.

Integration into Clean Label Food Formulations is simultaneously driving significant market consolidation, as major ingredient suppliers merge to create comprehensive nature-based texturizing portfolios. Companies are moving beyond standalone ingredient sales to offer holistic stabilization solutions that combine xanthan gum with other plant-derived hydrocolloids like pectin, satisfying consumer demand for recognizable ingredient lists. This strategic alignment is evident in high-value mergers, where according to Tate & Lyle, November 2024, in the 'Completion of combination with CP Kelco' announcement, the company finalized the acquisition of the nature-based ingredient leader for 1.8 billion USD to enhance its mouthfeel and fortification capabilities.

Segmental Insights

The Natural Xanthan Gum segment is emerging as the fastest-growing category within the Global Xanthan Gum Market, driven by the intensifying global demand for clean-label ingredients. As consumers increasingly scrutinize product labels for artificial components, food and beverage manufacturers are shifting towards this fermentation-based biopolymer to ensure authenticity and safety. This transition is further accelerated by approvals from regulatory authorities like the U.S. Food and Drug Administration, which validate its status as a safe, natural additive. Consequently, companies are rapidly adopting Natural Xanthan Gum to align with health-conscious market trends and organic standards.

Regional Insights

Asia Pacific occupies the dominant position in the Global Xanthan Gum Market, primarily driven by its status as the world's central manufacturing hub. China leads this production capacity, leveraging the abundant availability of cost-effective raw materials, such as corn, to supply global demands. Internally, the region benefits from rapid industrialization and urbanization, which fuels consumption across diverse sectors. The expanding food and beverage industry extensively utilizes xanthan gum for processed and gluten-free formulations, while the oil and gas sector requires significant volumes for drilling fluids. This dual role as both a major producer and consumer secures the region's sustained market leadership.

Recent Developments

• In April 2025, Fufeng Group Limited officially launched the construction of a major industrial park in the Zhambyl region of Kazakhstan. The project, involving a total investment of USD 800 million, focused on the deep processing of corn to produce high-value bio-fermentation products. The new facility included production lines for xanthan gum, amino acids, and monosodium glutamate, utilizing locally sourced raw materials. This expansion was strategically located to serve export markets in the European Union and the Middle East, while also creating significant employment opportunities within the local agricultural and industrial sectors.
• In November 2024, Tate & Lyle PLC completed the acquisition of CP Kelco from J.M. Huber Corporation for a total consideration of USD 1.8 billion. This strategic transaction united Tate & Lyle’s expertise in sweetening and fortification with CP Kelco’s leadership in pectin and specialty gums, including xanthan gum. The combination created a leading global specialty food and beverage solutions business with an expanded portfolio of nature-based ingredients. The merger was expected to accelerate innovation and drive growth by offering comprehensive solutions for texture and mouthfeel to customers worldwide.
• In September 2024, Jungbunzlauer Suisse AG commenced the construction of a new xanthan gum production facility at its existing site in Port Colborne, Ontario. The company invested CAD 200 million into this project, which marked the establishment of its first xanthan gum plant in Canada. Supported by a CAD 4.8 million grant from the Invest Ontario Fund, the facility was designed to produce readily biodegradable xanthan gum for the food, cosmetic, and pharmaceutical sectors. This expansion aimed to meet the rising demand for sustainable biogums across North America and reduce reliance on international imports.
• In January 2024, Xinjiang Meihua Amino Acid Co., Ltd., a subsidiary of Meihua Holdings Group Co., Ltd., signed a significant investment agreement to expand its manufacturing operations in the Wujiaqu Economic and Technological Development Zone. The project involved a total investment of CNY 500 million and included the construction of a new production line with an annual capacity of 15,000 tons of xanthan gum. This initiative also encompassed facilities for other bio-fermentation products such as isoleucine. The expansion was intended to enhance the company's production capabilities and support its growth in the competitive global market for food additives and ingredients.

Key Market Players

• Cargill Incorporated
• Foodchem International Corporation
• The Archer-Daniels-Midland Company
• DuPont de Nemours, Inc.
• Deosen Biochemical Ltd.
• C.E. Roeper GmbH
• Tate & Lyle PLC
• Ingredion Incorporated
• CP Kelco ApS
• Solvay S.A.

By Type	By Form	By Sources	By Application	By Region
Synthetic Xanthan Gum and Natural Xanthan Gum	Dry and Liquid	Fruits and Vegetables Oils Nuts and Seed Spices and Herbs Petroleum & Gallic Acid	Fats and Oils Prepared Foods Prepared Meat & Poultry Beverages Bakery and Confectionary Seafood & Other Food Products	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Xanthan Gum Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Xanthan Gum Market, By Type:

• Synthetic Xanthan Gum and Natural Xanthan Gum

• Xanthan Gum Market, By Form:

• Dry and Liquid

• Xanthan Gum Market, By Sources:

• Fruits and Vegetables
• Oils
• Nuts and Seed
• Spices and Herbs
• Petroleum & Gallic Acid

• Xanthan Gum Market, By Application:

• Fats and Oils
• Prepared Foods
• Prepared Meat & Poultry
• Beverages
• Bakery and Confectionary
• Seafood & Other Food Products

• Xanthan Gum Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE