ALBANY, New York, September 25, 2018 /PRNewswire/ --
The global xanthan gum market is consolidated in nature with the leading three players, namely Deosen, Fufeng Group Co. Ltd., and CP Kelco together accounting for a substantial 58% share. The players are seen diversifying their product offerings in order to cater to people having various budgetary requirements. For instance, they are seen launching both high-end products as well low cost ones in a constant quest to improve sales. Other key players in the global xanthan gum market are Jungbunzlauer Suisse AG, Cargill Inc., Archer Daniels Midland Co., DuPont-Danisco, and Hebei Xinhe Biochemical Co. Ltd.
As per a recent report by Transparency Market Research on the global xanthan gum market, it would likely rise at a 7.7% CAGR over the course of the forecast period between 2016 and 2024. Rising at this pace, the opportunity in the market is set to reach US$1.25 bn by 2024-end from US$651.5 mn in 2015. With respect to volume again, the global xanthan gum market is predicted to soar at a 7.3% CAGR over the said duration.
The global xanthan gum market is rising because of the demand from various end users. Among those, the food and beverage sector is generating maximum demand and going forward too would continue doing so. Xanthan gum is considered an excellent thickener and stabilizer. This, coupled with the rising popularity of convenience foods is providing a major fillip to the market. Geographically, the global xanthan gum market is being propped up by Asia Pacific. This is mainly on account of the surging demand for xanthan gum in China. In the upcoming years too, the China market is predicted to buoy the Asia Pacific market.
Burgeoning Food and Beverage Industry Primarily Underpins Global Xanthan Gum Market
Majorly fuelling the global xanthan gum market is the food and beverage industry. This is further explained by our lead analyst, "The food and beverage industry across the world is predicted to rise because of the rising purchasing power of people and the subsequent demand for convenience foods. And this will likely bode well for the demand for xanthan gum which is mainly used for formulating sauces, dressings, dairy, and ice creams. In fact, the xanthan gum market sees half of its demand being created by the food and beverage industry."
Yet another factor boosting the global xanthan gum market is its superiority over other hydrocolloids. This has also resulted in its higher demand from sectors such as pharmaceuticals, oil and gas, and agrochemicals.
Anti-dumping Duties on Xanthan Gum by U.S. Poses Challenge to Market
A few factors, nonetheless, are serving to have a negative impact on the global xanthan gum market. One of those is the anti-dumping duties imposed on xanthan gum from China and Austria by the U.S. and other developed nations. This in part because of the mistrust of the quality of xanthan gum supplied by China.
To overcome the headwinds, savvy players in the global xanthan gum market are looking towards the Asia Pacific market where emerging economies with large populations such as India, alongside China are generating substantial demand.
The review is based on the findings of a TMR report, titled, "Xanthan Gum Market (End Users - Food & Beverage (Bakery and Confectionery, Dairy and Ice Cream, Meat and Fish, Beverages, and Sauces and Dressings), Oil & Gas, Pharmaceutical, Personal Care, Agrochemicals, Lab Research, Paints, and Printing Inks) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016-2024."
The report segments the Global Xanthan Gum Market into the following:
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