Xanthan Gum is used as a FOOD ADDITIVES and rheology modifier which is generally used as a food thickening agent such as for salad dressings and sauces and also as a stabilizer in cosmetic products to prevent ingredients from separating. Xanthan gum is also used in frozen foods, beverages, spices, ice creams, toothpaste, and gluten-free baking. Xanthan Gum is used in OIL DRILLING for thickening drilling mud. The oil well drilling grade of Xanthan Gum is also very popular in Oil Industry. Xanthan gum is used in COSMETICS Industry to prepare water gels generally in conjunction with Bentonite clays.
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GlobalNewsWire predicts that the total global xanthan gum market will reach nearly 1 billion US dollars in 2021, with a compound annual growth rate of 7.74%. According to the report, the global effective production capacity of xanthan gum has reached more than 290,000 tons in 2020, and China’s Fufeng Group is the world’s largest producer. According to the report of Guosheng Securities in 2019, the current global production capacity of xanthan gum is mainly concentrated in China, and the three leading enterprises of Fufeng, Deosen Biochemical, and Meihua Biology occupy nearly 80% of the national production capacity.
Since the upstream industry of xanthan gum is mainly corn starch, the production of xanthan gum is more affected by the price and supply of corn. The supply of corn starch in China is relatively sufficient and the price is relatively low, which has laid a good foundation for the normal production and development of the xanthan gum industry. At the same time, because Fufeng Group and Meihua Group have advantages in biological fermentation technology and site selection, they are in a leading position in the world in terms of production capacity. According to the statistics of Zhuochuang Information, in 2014, the export volume of China’s xanthan gum exceeded 70% of the total output, of which Fufeng Group’s exports accounted for more than 85% of the total sales for five consecutive years from 2010 to 2014.
In recent years, however, the price of export xanthan gum has fallen due to the slowdown in the oil industry and overcapacity. Due to weak demand for xanthan gum, Fufeng is taking the initiative to reduce xanthan gum production capacity to adjust the production of other fast-growing new products. Although Deosen is the first supplier in China to produce and export xanthan gum, it is more affected by market fluctuations due to its focus on the production and sales of a single product.
The following is a list of quality suppliers of xanthan gum
Overall, for hydrocolloid products that can be used as edible thickeners, the growth of the market is driven by the growing demand for convenience foods from the food industry, the main market driver being increased R&D and innovation. Growth in the consumption of convenience foods, increased consumer awareness of ingredient labeling, a focus on animal welfare, and growing preferences for dietary habits such as vegan, kosher, and halal will encourage the adoption of hydrocolloids. to a new starting point for development. From the perspective of supply chain reliability and price stability, food manufacturers may prefer bio-gels on the market, which are relatively immune to climate change, rather than plant-derived hydrocolloids.