xanthan gum Pricing Assessment

Markets Covered:

China

India

Brazil

Indonesia

Vietnam

Turkey

United States

Xanthan Gum Price Trend, Analysis and Forecast

In Q1 2024, the global Xanthan Gum market experienced a mixed trend. In China, the prices for Food grade Xanthan Gum were reported at USD 2,733/MT, while Oil Drilling grade prices stood at USD 2,946/MT. This marked a sharp decrease from the previous quarter by 34% and 31%, respectively. The decline was largely driven by a combination of decreased demand in key sectors and a shift towards alternative thickening agents. However, the food and beverage industry remained a steady consumer, providing some support to prices amidst this downturn.

Moving into Q2 2024, the Xanthan Gum market saw a positive shift. Prices for Food grade Xanthan Gum in China rose to USD 2,846/MT, reflecting a 4.1% increase from Q1. Conversely, Oil Drilling Grade prices decreased to USD 2,668/MT, showing a decline of 9.4%. Contributing factors to these changes included improved demand in the food sector due to seasonal trends and a more stable supply chain, although fluctuations in freight costs continued to impact the market dynamics. The resilience of the food industry was crucial in driving the overall demand for Xanthan Gum.

As of July 2024, the Xanthan Gum market was witnessing further upward movement, with Food grade prices reaching USD 3,100/MT, a notable increase of 6.9% from June 2024. Oil Drilling grade prices also showed a slight increase, priced at USD 2,710/MT, reflecting a positive trend of 2.3%. On a global scale, this upward momentum can be attributed to a resurgence in various industries, including food and cosmetics, coupled with supply chain adjustments that alleviated some previous bottlenecks. The demand for Xanthan Gum in the oil drilling sector, while still facing some challenges, began to stabilize as activity increased.

Looking ahead to Q4 2024, the Xanthan Gum market is anticipated to maintain its upward trajectory. The festive season could drive increased demand for food-grade products, likely putting further pressure on supply. Additionally, potential disruptions in shipping due to geopolitical tensions or adverse weather conditions could create a tighter market environment. Overall, as industries continue to rebound and demand rises, we can expect prices to remain elevated, reflecting the ongoing complexities of supply and demand dynamics in the Xanthan Gum market.

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is your trusted resource for tracking global xanthan gum price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the xanthan gum market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Track 's xanthan gum price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in xanthan gum prices

China’s Environmental Regulations (2024): Stricter environmental policies in China, the largest Xanthan Gum producer, caused factory shutdowns and production slowdowns, driving supply shortages and price increases globally.

Russia-Ukraine Conflict (2022-Present): Though primarily impacting energy markets, this conflict disrupted global logistics and caused price volatility in raw materials essential for Xanthan Gum production, indirectly affecting market prices.

COVID-19 Pandemic (2020-2021): The pandemic initially led to reduced demand from the food and beverage industry as global lockdowns slowed consumption. However, demand rebounded sharply in the pharmaceutical and personal care sectors due to increased use in sanitizers and healthcare products, creating price fluctuations.

U.S.-China Trade Tensions (2018-2019): Trade wars between the U.S. and China caused instability in the global Xanthan Gum supply chain, leading to increased tariffs and shifting production bases, which contributed to price hikes.

These events highlight the Xanthan Gum market’s sensitivity to global supply chain issues, environmental policies, and geopolitical tensions, underscoring the need for ongoing monitoring of production and trade dynamics.

Methodology and Specifications

xanthan gum Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: collects real-time pricing data from a wide range of sources, including global commodity exchanges, industry reports, and proprietary databases. This allows our assessments to reflect the latest market conditions for Xanthan Gum accurately.

On-the-Ground Intelligence: Our team gathers insights directly from market participants such as producers, suppliers, traders, and end-users in major Xanthan Gum production hubs, especially in China. This on-the-ground intelligence helps us capture localized market dynamics.

Supply Chain Monitoring: We closely track the entire Xanthan Gum supply chain, from raw materials like corn, wheat, and soy used in fermentation processes, to production and distribution networks. This includes monitoring feedstock availability, production capacities, and logistical aspects such as transportation.

Event Tracking and Impact Analysis

Geopolitical and Trade Issues: continuously monitors geopolitical developments and trade policies, particularly between China and the rest of the world, which can affect Xanthan Gum prices. Tariffs, export restrictions, and international tensions are assessed for their potential impact on the supply chain and pricing.

Environmental and Regulatory Changes: We evaluate the influence of stricter environmental regulations in China, where most Xanthan Gum is produced. These regulations have led to factory shutdowns and production restrictions, impacting global supply and prices.

Pandemics and Supply Chain Disruptions: The COVID-19 pandemic caused notable disruptions in the Xanthan Gum market. Our analysis factors in how such events, including freight delays and rising logistics costs, can influence pricing. Additionally, we assess future risks that could disrupt production and supply chains.

Production Capacity and Supply Analysis

Current Production Monitoring: maintains a robust database of Xanthan Gum production facilities worldwide, focusing on their operational status, production levels, and any maintenance or downtime schedules. This ensures we provide an accurate view of current supply levels.

Future Capacity Projections: We forecast future Xanthan Gum production capacities by tracking new plant developments, expansions, and potential technological advancements in the production process. This helps predict future supply trends and potential price stabilization or shifts.

Demand Forecasting

Sectoral Demand Analysis: provides detailed analysis of demand trends across key sectors that use Xanthan Gum, including food & beverages, oil & gas, pharmaceuticals, and cosmetics. We track annual demand growth and forecast future consumption based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations, particularly how demand in China, the U.S., and Europe influences global Xanthan Gum pricing. This includes evaluating shifts in manufacturing locations, export policies, and changes in environmental or food safety regulations.

Pricing Model Development

Dynamic Pricing Models: uses advanced econometric models to forecast Xanthan Gum prices, incorporating real-time data, historical pricing trends, and projected market conditions. Our models are continuously updated to ensure the highest accuracy and reliability in price forecasting.

Scenario Analysis: We perform scenario-based assessments to explore potential future market conditions. These assessments cover best-case, worst-case, and most likely scenarios, helping clients prepare for a variety of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive in-depth reports that include current price assessments, future price forecasts, and detailed analysis of market drivers specific to Xanthan Gum. These reports provide actionable insights and recommendations to help clients make well-informed decisions.

Ongoing Support: provides continuous updates and personalized client support, ensuring they stay informed with the latest market developments. Our experts are available to discuss specific market changes and offer tailored advice to help clients navigate the evolving Xanthan Gum market.

This research methodology ensures that delivers the most accurate, timely, and actionable Xanthan Gum pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

933.748

CAS No

11138-66-2

HS Code

39139090 (Oil Drilling Grade), 39139019 (Food Grade)

Molecular Formula

C35H49O29

xanthan gum

Xanthan Gum is a natural polysaccharide used primarily as a thickening, stabilizing, and emulsifying agent. It is produced through the fermentation of carbohydrates using the bacterium Xanthomonas campestris. Due to its excellent water-solubility and ability to form viscous solutions, it is widely used in various industries.

Packaging Type

25 Kg Bag

Grades Covered

Food grade, Oil Drilling grade

Incoterms Used

FOB Qingdao, CIF Nhava Sheva, Ex-Ahmedabad, CIF Santos, CIF Tanjung Priok, CIF Haiphong, CIF Izmir, and CIF Houston.

Synonym

Corn Sugar Gum, Bacterial Polysaccharide, Xanthomonas Gum, Polysaccharide B1459

Quotation Terms:

10-15 MT (Domestic), 25-30 MT (Export-Import)

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

PARAMETERS	SPECIFICATION	RESULT
Appearance	Cream- White	Confirm
Particle Size (mesh)	Not less than 99% through 80 mesh (180µm)	Confirm
	Not less than 92% through 200 mesh (75µm)	Confirm
Identification A	The barium hydroxide solution shows turbidity	Confirm
Identification B	No gel formation below 40°C	Confirm
Assay	91% – 108%	99.5
Viscosity (1% KCL, cps)	1200-2000	1650
Shearing Ratio	≥6.5	6.8
pH (1% KCL)	6.0-8.0	6.85
Loss on drying (%)	≤15	9.4
Ashes (%)	≤16	10.72
Pyruvic acid (%)	≥1.5	Confirm
Heavy metals	≤30 ppm	Confirm
Arsenic (As)	≤2ppm	Confirm
Lead (Pb)	≤2ppm	Confirm
Mercury (Hg)	≤1ppm	Confirm
Cadmium (Cd)	≤1ppm	Confirm
Total Nitrogen	≤1.5%	Confirm
Isopropyl alcohol	Absent	Confirm
Ethanol	<500 ppm	482
Total plate count	≤1000 cfu/g	100
Moulds / Yeasts	≤100 cfu/g	Confirm
Colifrom (MPN/100g)	≤30	Confirm
Salmonella	Absent	Confirm
E.coli	Absent	Confirm
Aerobic mesophilic microorganisms	Negative /200 g	Confirm
Enterobacteriaceae	Negative /10 g	Confirm

Xanthan Gum Oil Drilling Grade

TEST	SPECIFICATION	RESULT
Starch, Guar or their derivatives	Absent	Confirm
Shearing Ratio	≥ 6.5	7.2
Moisture Content (%)	Max. 13	11
Rheology at 25 C, On a 0.2 spring Fann 35 rheometer, API 13A test method
600 RPM Reading	76 min	100
300 RPM Reading	55 min	75
6 RPM Reading	18 min	25
3 RPM Reading	16 min	18
Brookfield LV,1.5 r/min	1950 min	2500
Conclusion	Qualified

Applications

Xanthan Gum has a wide range of applications across industries. In the food and beverage sector, it is used as a thickener and stabilizer in sauces, dressings, bakery products, and dairy alternatives. In the oil and gas industry, it plays a crucial role in drilling fluids due to its ability to maintain viscosity under varying temperatures and pressures. The pharmaceutical and cosmetic industries use Xanthan Gum in products like creams, lotions, and toothpaste for its stabilizing and thickening properties. Additionally, it is applied in the agriculture industry as a stabilizer in pesticides and fertilizers. The textile and paper industries also utilize Xanthan Gum for its rheological properties in processing and coating applications.

Disclaimer

Xanthan Gum price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for xanthan gum. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors impact Xanthan Gum pricing in the global market? +

The pricing of Xanthan Gum is influenced by several key factors, including raw material costs, production capabilities, and market demand from various sectors such as food and beverages, oil drilling, and pharmaceuticals. Supply chain issues, such as transportation costs and logistics challenges, also play a significant role. Additionally, fluctuations in demand during peak seasons, regulatory changes, and geopolitical events can further affect pricing trends.

How do supply chain disruptions affect Xanthan Gum prices? +

Supply chain disruptions can significantly impact Xanthan Gum prices by causing delays in production and transportation. Events such as factory closures, equipment shortages, and increased freight rates can create bottlenecks in the supply chain, leading to higher prices. Additionally, disruptions in the availability of raw materials or geopolitical tensions can further strain supply, prompting procurement heads to closely monitor market conditions to make informed purchasing decisions.

What is the price outlook for Xanthan Gum, and how can procurement teams prepare? +

The price outlook for Xanthan Gum suggests potential volatility due to fluctuating demand, particularly in the food and oil drilling sectors. Procurement teams should prepare by closely monitoring market trends, considering seasonal demand variations, and exploring long-term contracts with suppliers to secure favorable pricing. Diversifying sourcing options and staying informed about raw material availability will also help mitigate risks associated with sudden price increases.