TMR_Research_Reports_2017 reach US$1.25 bn by the end of 2024 | Page 3

Xanthan Gum Market
Geographically, North America will continue to command the lion’s share in the market until
2024. The development of new technologies in order to enhance the quality of xanthan gum and
the presence of favorable regulatory policies are escalating the growth of the region. Asia Pacific
is poised to progress at a CAGR of 8.8% during the same period, owing to the robust growth of
end-user industries such as food and beverages and oil and gas.
Rapid Growth of Food and Beverage Industry Stirs up Demand for Xanthan Gum
The food and beverage sector worldwide is expanding at a brisk pace, owing to the rising per
capita expenditure on food products and the changing consumption patterns. Xanthan gum is
used in bakery and dairy products and therefore, the robust growth of the industry is
supplementing the growth of the global market. “Xanthan gum offers advantages such as better
acid stability, water binding capacity, salt tolerance, and viscosity control over other
hydrocolloids, which drive its adoption across various applications such as oil drilling, personal
care, and food and beverages,” says a TMR analyst. Moreover, the price inflation of substitutes
such as guar gum is working in favor of the global xanthan gum market.
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Anti-dumping Duty on Asian Xanthan Gum Negatively Impacts Overall Market
Revenue
Xanthan gum produced in Austria and China are of inferior quality and are sold at cheaper prices
than in the international market. This paved way for an anti-dumping duty on its imports to the
U.S., which subsequently led to a decline in the prices of Asian xanthan gum due to oversupply
in the rest of the international market. The declining prices are adversely affecting the overall
revenue generation of the global market. In addition, the quality concerns over Asian xanthan
gum are limiting their widespread adoption. However, the growing preference for gluten-free
bakery products is likely to act as a light at the end of the tunnel for xanthan gum
manufacturers over the coming years.
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