Global xanthan gum market is expected to reach US$987.7 million by 2020, according to a Radiant Insights report.
Growth of the oil and gas industry is expected to be one of the primary factors driving xanthan gum demand over the forecast period.
Increasing use of xanthan gum as an emulsion in applications including salad dressings, toppings, relishes, sauces, non-fat milk, dairy products, baked and frozen foods coupled with growth of food and beverage (F&B) industry is anticipated to augment market growth.
Oil and gas, as well as F&B accounted for over 80% of xanthan gum market in terms of volume and revenue in 2013.
F&B is anticipated to be the fastest growing application of xanthan gum over the forecast period closely followed by oil and gas.
Growing population, changing lifestyle of consumers and rising number of restaurants and cafes especially in India and China coupled with increasing use of xanthan gum as a low price alternative to guar gum in food applications is expected to result in high demand for the ingredient.
Asia Pacific was the largest market accounting for over 40% of global xanthan gum volume share in 2013.
F&B growth in China, India, Malaysia and Singapore is expected to drive xanthan gum market over the forecast period.
