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United StatesIn Q1 2025, the Xanthan Gum market in China (FOB Qingdao) continued to soften, with Food Grade prices declining to USD 2,750/MT reflecting a 2.1% decrease while Oil Drilling Grade settled at USD 2,620/MT, showing a slight decrease of 0.8%. The market was significantly impacted by the Lunar New Year holiday, which led to reduced industrial activity and lower procurement rates across key sectors. Many manufacturers scaled down production, while temporary factory shutdowns disrupted the supply chain. Additionally, sluggish demand from food processing and oil drilling industries, coupled with global economic uncertainties, further contributed to price softness. However, stable raw material costs and logistical improvements helped prevent a steeper decline.
In Q4 2024, the Chinese (FOB Qingdao) Xanthan Gum market saw a downturn as Food Grade prices fell to USD 2,810/MT reflecting a sharp decrease of 10.2% and Oil Drilling Grade declined to USD 2,640/MT reflecting a 5.5% decrease. This decrease was largely due to year-end inventory destocking, prompting manufacturers and traders to reduce prices to clear excess stocks. Weaker demand from the oil drilling industry, influenced by fluctuations in global crude oil prices, further pressured market sentiment. Additionally, abundant raw material availability and increased production efficiency resulted in a more relaxed supply scenario, contributing to the overall price reduction.
In Q3 2024, the Xanthan Gum market in China (FOB Qingdao) experienced a positive trend, with Food Grade prices reaching USD 3,130/MT, reflecting a 9.8% increase, while Oil Drilling Grade prices rose to USD 2,790/MT, marking a 4.5% gain. This surge was mainly driven by strong demand from the food and beverage industry, where the need for stabilizers and thickening agents increased. Additionally, the oil drilling and cosmetics sectors saw improved procurement, boosting overall market sentiment. Rising raw material costs, particularly Corn Sugar and Soybean derivatives, also played a role in price hikes. Export demand strengthened, and higher freight charges further impacted the pricing structure.
Moving into Q2 2024, the Xanthan Gum market saw a positive shift. Prices for Food grade Xanthan Gum in China (FOB Qingdao) 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.
In Q1 2024, the global Xanthan Gum market experienced a mixed trend. In China (FOB Qingdao), 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. This significant drop was mainly due to a post-pandemic price correction as the market adjusted from previously elevated levels. A decline in demand from key sectors like food processing and industrial applications also contributed to the downward trend.
In Q1 2025, Indian prices (CIF Nhava Sheva) of Xanthan Gum (Food Grade) dropped again to USD 3,050/MT, representing a 4.1% drop. Diminished buying interest during the seasonal slowdown in early-year activity added to decreased market activity. Numerous manufacturers ran lower capacity due to holidays and maintenance cycles. Finally, consistent raw material supply and uneventful logistics prevented sharper price decline.
In Q4 2024, prices of Xanthan Gum (Food Grade) in India (CIF Nhava Sheva) fell to USD 3,180/MT, indicating an 11.91% fall. It was primarily the result of clearing year-end inventory, as buyers sought to unwind inventories. Demand weakened following the festive period, slowing buying activity. Furthermore, enhanced efficiency in production and plentiful availability of raw materials contributed to the price fall.
In Q3 2024, the Xanthan Gum (Food Grade) market in India (CIF Nhava Sheva) kept going in an upward direction, with prices growing 8.08% to USD 3,610/MT. Much of this increase was fuelled by robust festive season demand from the food processing sector. Rising input costs like Corn Sugar and energy put pressure on increasing prices. Export demand from neighbouring nations also prompted producers to stick to their price.
In Q2 2024, the Xanthan Gum (Food Grade) prices in India (CIF Nhava Sheva) increased slightly to USD 3,340/MT, a 4.05% increase. This increase was aided by seasonal demand from the food and beverage industry, particularly during summer. Sustained procurement by local consumers also helped maintain market stability. In addition, sustained raw material supply allowed Chinese manufacturers to keep production without significant cost variations.
During Q1 2024, the Xanthan Gum (Food Grade) market in India (CIF Nhava Sheva) experienced a steep price drop to USD 3,210/MT, marking a 33.13% dip. This decline was primarily attributed to a post-COVID price correction, as previously inflated rates started to level out. A slowdown in demand from the processed food sector further dented market sentiment. High domestic production in China also contributed to an oversupply, putting additional pressure on prices.
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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.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Xanthan Gum pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
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
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
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.
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.
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.
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.
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