Xanthan Gum On The Rise

BUCKINGHAMSHIRE, United KingdomGuar prices have fallen back on the expectation of a good Indian guar crop in November 2012, but if the global demand for guar continues to outstrip the new guar supply, traditional users of guar gum, such as the food industry, are expected to increasingly look for alternative thickeners or gel forming compounds, such xanthan gum, starches, pectin or agar, according to a new commodity analysis from Minteck.

Xanthan gum is increasingly been used as a less expensive alternative to guar gum in many food-based applications. Xanthan gum is widely used as a substitute for egg whites in salad dressings, sauces and fillings; however, it is often added lowfat or nonfat dairy products, such as some types of non-dairy ice cream to add more texture.

China became the world's largest producer of xanthan gum in 2005 and now produces and exports about two-thirds of the world's supply, followed by the United States, France, Austria and Japan. Competition during the global financial crisis of 2008/09 drove xanthan gum prices down; however, the price of xanthan gum in China (in terms of U.S. dollars) has now increased more than 25% annually. Industry analysts predict total global production in 2012 to be in excess of 110,000 tons.