Xanthan gum which is primarily used as a food thickening agent and also in reducing water mobility in enhanced oil recovery (EOR) method is composed of pentasaccharide repeat units. It comprises of glucose, glucuronic acid and mannose in the molar ratio of 2.0:1.0:2.0. On the basis of application the market is segmented into food and beverages, oil and gas, pharmaceutical, cosmetics and others.

The global xanthan gum market witnessed growth in recent years due to the increasing demand for emulsifiers derived from natural sources that are being used in bakery and in confectionery products. Moreover, the increase in the use of emulsifiers in peanut butter, chocolate, salad dressings, frozen desserts and margarine is expected to drive the market for xanthan gum. The rapid growth in oil and gas industry as a result of increasing energy requirements for the growing population is also anticipated to propel demand over the forecast period. The growing consumer awareness regarding the harmful nature of synthetic derived personal care products is expected to fuel the growth of natural personal care products. This in turn serves as a driving factor for the growth of xanthan gum market.

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Threat of substitutes from gaur gum and locust bean gum serves as a restraining factor in the growth of the xanthan gum market. In addition, xanthan gum may be sourced from a variety of mediums that are themselves common allergens, such as, wheat, corn, soy, dairy and as a result it might trigger allergic response in people sensitive to these mediums.

Recent trend shows that leading companies are entering into strategic partnerships and joint ventures which are expected to strengthen the global market for xanthan gum over the forecast period. In February 2015, Pfizer Inc. declared that it would acquire Hospira Inc.in order to increase the use of xanthan gum in pharmaceutical applications. In January 2013, Cargill and Arasco entered into a joint venture in order to manufacture starch and sweetener based products in Saudi Arabia.

In 2013 Asia Pacific held the largest market in terms of revenue for xanthan gum and the market is expected to grow due to increase in demand of food processing industry in the region. Rapid economic development in China, India, Indonesia and Vietnam is also expected to fuel the demand for xanthan gum. Moreover, favorable government policies in India and China along with increasing foreign investments in oil & gas sector in the region is expected to boost xanthan gum market over the forecast period. Growing domestic demand for foods & beverages in emerging markets of BRICS is anticipated to create a positive impact on the global food & beverage industry which will result in growth in the demand for xanthan gum over the forecast period.

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Some of the key players operating in the.xanthan gum market are Fufeng Group Company Ltd, Deosen Biochemical Ltd, Cargill, Hebei Xinhe Biochemical Co Ltd, Gum Technology Corporation, Meihua Holdings Group Co. Ltd, Pfizer Inc, Qingdao Unichem Co Ltd., Sancho & Lee Co. Ltd., Jungbunzlauer AG., Archer-Daniels-Midland Company and CP Kelco ApS among others.

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