Global Xanthan Gum Market Size, Share, And Business Benefit By Function (Thickening Agent, Stabilizing Agent, Suspending Agent, Fat Replacer, Others), By Form (Liquid, Dry), By Application (Food and Beverages (Bakery Products, Confectionery, Meat Products, Frozen Food, Dairy Products, Beverages, Others), Pharmaceuticals, Personal Care and Cosmetics, Oil Refinery, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Xanthan Gum Market is expected to be worth around USD 1,079.8 million by 2034, up from USD 688.7 million in 2024, and is projected to grow at a CAGR of 4.6% from 2025 to 2034. Strong growth in processed foods and cosmetics boosted the Asia Pacific’s 44.60% market presence

Xanthan gum is a microbial polysaccharide produced through fermenting sugars with a specific bacterium. It acts as a thickener, stabilizer, and emulsifier in food, cosmetics, and industrial formulations. Its molecular structure allows it to form viscous solutions at low concentrations, making it highly efficient for texture control in products ranging from sauces to creams.

The xanthan gum market refers to the global ecosystem of production, trade, and applications of this ingredient across industries. It encompasses raw material supply (sugars, fermentation media), manufacturing plants, formulation users (food, personal care, oil), and distribution channels. Growing awareness of natural and clean-label ingredients, combined with regulatory constraints on synthetic additives, pushes interest in xanthan gum.

Key growth factors include rising demand for clean-label and plant-based foods and cosmetics, stricter regulations on synthetic thickeners, and ingredient innovation to improve performance. For instance, Jungbunzlauer invests $200 million to build Canada’s first xanthan gum manufacturing facility in Ontario, expanding capacity to meet North American demand. These investments signal confidence in long-term demand.

Meanwhile, in consumer food startups, Hero Bread raises $21 million and The Baker’s Dozen raises Rs 33 crore in funding rounds led by Wipro Consumer VC unit, indicating strong investor interest in food tech, where stabilizers like xanthan gum play roles. (Also, Bikaji Foods to acquire controlling stake in The Hazelnut Factory for Rs 131 crore hints at scaling in snack/ingredient ecosystems.)

Opportunities lie in expanding into emerging markets (Asia, Latin America) where processed food penetration is still rising, in tailoring specialty grades (high purity, pharma, biotech), and in collaborating with startups driving novel formulations (e.g, alternative proteins, clean cosmetics). Manufacturers who scale efficiently—backed by capital injections like Jungbunzlauer’s $200 million investment—and ingredient innovators backed by funding (like Cellugy’s €8M) are well placed to seize market share in evolving sectors.

Key Takeaways

• The Global Xanthan Gum Market is expected to be worth around USD 1,079.8 million by 2034, up from USD 688.7 million in 2024, and is projected to grow at a CAGR of 4.6% from 2025 to 2034.
• In 2024, the Xanthan Gum Market saw thickening agents dominate, capturing a strong 44.8% share.
• Dry form led the Xanthan Gum Market in 2024, holding a remarkable 79.2% share.
• The Food and Beverages segment dominated the Xanthan Gum Market with a 56.4% share in 2024.
• The Asia Pacific market value reached USD 307.1 million, driven by rising food demand.

By Function Analysis

In 2024, the Xanthan Gum Market’s thickening agent segment captured 44.8%.

In 2024, Thickening Agent held a dominant market position in the By Function segment of the Xanthan Gum Market, with a 44.8% share. This strong presence reflects its extensive use across food, beverage, and personal care formulations, where viscosity control and texture consistency are essential. The unique rheological properties of xanthan gum enable the stable suspension of ingredients, even under varying temperature and pH conditions.

Its efficiency at low concentrations makes it cost-effective for industrial applications, particularly in sauces, dressings, dairy alternatives, and bakery products. The continued preference for clean-label and multifunctional ingredients further reinforces the prominence of xanthan gum as a thickening agent, positioning it as a key functional component across multiple end-use industries.

By Form Analysis

In 2024, the dry form dominated the Xanthan Gum Market with 79.2%.

In 2024, Dry held a dominant market position in the By Form segment of the Xanthan Gum Market, with a 79.2% share. This dominance is mainly due to its superior stability, easy handling, and longer shelf life compared to liquid forms. Dry xanthan gum is preferred by food, cosmetic, and industrial manufacturers because it offers consistent quality, better solubility, and simplified transportation.

Its powder form allows precise dosing and easy blending into various formulations such as bakery mixes, sauces, and personal care products. The wide acceptance of dry xanthan gum highlights its functional reliability and cost efficiency, making it the most widely adopted form across global production and formulation processes in 2024.

By Application Analysis

In 2024, food and beverages led the Xanthan Gum Market with 56.4%.

In 2024, Food and Beverages held a dominant market position in the By Application segment of the Xanthan Gum Market, with a 56.4% share. This leadership is driven by the ingredient’s vital role in improving texture, stability, and mouthfeel across a range of products such as sauces, dressings, dairy alternatives, and bakery goods. Xanthan gum provides uniform viscosity, preventing ingredient separation and enhancing the overall sensory experience of food products.

Its versatility and compatibility with clean-label formulations have made it a preferred choice among food manufacturers. The rising consumer demand for high-quality, consistent, and shelf-stable food and beverage products further strengthened the dominance of this application segment in 2024.

Key Market Segments

By Function

• Thickening Agent
• Stabilizing Agent
• Suspending Agent
• Fat Replacer
• Others

By Form

• Liquid
• Dry

By Application

• Food and Beverages
  • Bakery Products
  • Confectionery
  • Meat Products
  • Frozen Food
  • Dairy Products
  • Beverages
  • Others
• Pharmaceuticals
• Personal Care and Cosmetics
• Oil Refinery
• Others

Driving Factors

Rising Demand for Texture-Enhancing Food Ingredients

A major driving factor for the Xanthan Gum Market in 2024 is the rising demand for texture-enhancing and stabilizing ingredients in the global food and beverage industry. Consumers increasingly prefer products with consistent texture, improved mouthfeel, and longer shelf life—qualities xanthan gum provides effectively in sauces, dressings, bakery, and dairy alternatives. The growing clean-label and gluten-free food trend further boosts its use as a natural thickener.

Supporting this expansion, Doughlicious gained a $5 million funding boost to enhance its product ranges, while Ryan Trahan-backed Joyride raised $30 million to expand its innovative candy line, both of which rely on high-quality stabilizers like xanthan gum to ensure desired consistency and consumer satisfaction.

Restraining Factors

High Production Costs Limit Wider Market Expansion

One key restraining factor for the Xanthan Gum Market in 2024 is the high production cost associated with fermentation and purification processes. Manufacturing xanthan gum requires specialized bacterial cultures, controlled environments, and energy-intensive operations, which increase overall costs compared to synthetic or simpler hydrocolloids. This makes it less affordable for small and medium-scale food producers, especially in developing regions.

Additionally, fluctuations in raw material prices, such as sugar and corn, further impact cost stability. While premium brands and innovative food startups continue to use xanthan gum for quality consistency, affordability remains a barrier. For instance, Planet A’s cocoa-free chocolate gained $30 million in scale-up funding, showing how investments often prioritize innovation over expensive ingredient systems.

Growth Opportunity

Expanding Use in Confectionery and Snack Innovation

A major growth opportunity for the Xanthan Gum Market in 2024 lies in its expanding use within the confectionery and snack industry. As manufacturers develop new textures and cleaner ingredient labels, xanthan gum’s stabilizing and thickening abilities make it ideal for chewy, glossy, and consistent candy formulations. It helps maintain uniformity and prevents sugar crystallization, enhancing the overall product experience.

The industry’s strong funding momentum supports this growth — Candytoy Corporate raised Rs 110 crore to expand its manufacturing facilities, while confectionery startup Go Desi raised $5 million in funding led by Aavishkaar Capital. Such investments are boosting innovation and production capacity, creating more opportunities for xanthan gum’s integration in next-generation sweet and snack products.

Latest Trends

Growing Shift Toward Clean-Label and Natural Formulations

A key trend shaping the Xanthan Gum Market in 2024 is the growing shift toward clean-label and natural ingredient formulations. Consumers are becoming more conscious of what goes into their food, skincare, and personal care products, leading brands to replace synthetic additives with natural stabilizers like xanthan gum. Its plant-based origin and multifunctional properties make it ideal for clean-label products that demand transparency and sustainability.

This trend is also attracting significant industry funding — Candytoy Corporate secured INR 110 crore in Series A funding to propel growth and innovation. Such investments indicate a broader market move toward natural ingredient solutions, where xanthan gum continues to play a central role in product development and formulation diversity.

Regional Analysis

In 2024, the Asia Pacific dominated the Xanthan Gum Market with a 44.60% share.

In 2024, the Asia Pacific region held a dominant position in the global Xanthan Gum Market, capturing a significant 44.60% share, valued at USD 307.1 million. The region’s leadership is supported by its strong food and beverage processing industry, rising demand for convenience foods, and growing use of xanthan gum in cosmetics and pharmaceuticals. Countries such as China, India, and Japan are key contributors, driven by expanding industrial applications and an increasing focus on product quality and texture stability.

North America continues to show stable growth, supported by a mature food processing sector and high adoption in gluten-free formulations. Europe reflects steady expansion, with clean-label trends enhancing xanthan gum’s use in bakery and dairy.

Meanwhile, Latin America and the Middle East & Africa regions are gradually emerging markets, supported by growing packaged food consumption and industrial diversification.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In 2024, leading players such as ADM, Foodchem International Corporation, and Deosen Biochemical (Ordos) Ltd. played a crucial role in shaping the global Xanthan Gum Market through product quality, innovation, and capacity expansion. ADM continues to strengthen its presence with advanced fermentation technology and sustainable ingredient production, focusing on supplying high-purity xanthan gum for food, beverage, and industrial applications. Its broad distribution network supports a consistent supply across global markets.

Foodchem International Corporation, a prominent manufacturer and supplier of food ingredients, focuses on reliability, product consistency, and global reach. Its xanthan gum products are widely used in bakery, dairy, beverages, and personal care formulations due to superior solubility and texture-enhancing properties. The company’s wide export base has enabled strong positioning in Asia and beyond.

Deosen Biochemical (Ordos) Ltd. stands out for its specialization in biotechnology-based production of xanthan gum. Its focus on research-driven development, efficient fermentation systems, and environmental compliance has enhanced its competitive edge. The company’s strong focus on industrial-grade xanthan gum applications, including oil drilling and cosmetics, has strengthened its global footprint. Collectively, these players emphasize sustainability, quality assurance, and diversification of applications—ensuring xanthan gum remains a key stabilizing and thickening agent across multiple industries worldwide.

Top Key Players in the Market

• ADM
• Foodchem International Corporation
• Deosen Biochemical (Ordos) Ltd.
• Cargill, Incorporated
• Ingredion
• CP Kelco U.S., Inc.
• HEBEI XINHE BIOCHEMICAL CO., LTD
• MEIHUA HOLDINGS GROUP CO., LTD.
• Qingdao Unionchem Co.,Ltd.

Recent Developments

• In July 2024, Cargill launched a trio of new food ingredient solutions at IFT, targeting plant-based formulations, improved nutritional profiles, and trending product concepts.
• In July 2024, Ingredion introduced VITESSENCE® Pea 100 HD, a new pea protein designed to maintain softness in cold-pressed bars over shelf life, improving texture and sensory appeal.
• In May 2024, CP Kelco completed a USD 60 million expansion of its citrus fiber production line at its Matão, Brazil, facility. While this is not specifically a xanthan gum project, it shows CP Kelco is investing in its portfolio of plant-based stabilizers and fiber ingredients.

Report Scope