Why Xanthan Gum is Gaining Importance in the Hydrocolloid and Lubricant Industries

Rising cost of raw materials and energy cost has resulted in a steep rise in prices of guar gum and pectin. Xanthan gum is the best alternative low cost substitute to these hydrocolloids in oil drilling industry and food industry. 90% of total production of Xanthan gum is majorly contributed by China and remaining 10% contributed by Austria, US, France and Japan. In spite of rising demand for xanthan gum, prices are expected to experience a drop in the next 12 months owing to a predicted drop in raw material prices and increasing supply from China. What is xanthan gum? Global hydrocolloids market has been increasing at a CAGR of 5.30% and is expected to grow at a rate of 5.57% over the period of 2014-2018. The key factors contributing to this growth are the increasing demand for healthy and natural food products and demand as a thickening drilling mud in the Oil Drilling industry. Xanthan gum is one of the hydrocolloids with properties very similar to cornstarch. This is generally derived from the fermentation of the glucose syrup with the bacteria Xanthomonas campestris bacterium. 90% of total production of Xanthan gum is majorly contributed by China and the remaining 10% contributed by Austria, US, France and Japan. Xanthan Gum industry Overview China became the world's largest producer of xanthan gum with the production capacity of 75,000 metric tons in 2005 and now produces and export two-third of the world's production and export volume. Author: Pushplata Biswal