Xanthan Gum is a powerful thickening agent, and also has uses as a stabilizer to prevent ingredients from separating. It is primarily used as a thickener, but is also the most efficient stabilizer for suspensions, emulsions, foams and solid particles in water-based formulations. It has the unique rheological and synergetic properties of its aqueous solutions. It is also used as a gelling agent for humic acid.

It is used as a stabilizer, emulsifier, thickener, suspending agent and bodying agent in food applications such as salad dressings, sauces, instant products, pastes, desserts, bakery and fruit juices as well as in the formation of various low-calorie foods. It also helps suspend solid particles, such as spices. In baked goods, xanthan gumcan increase cellular bubble content, improve water retention, enhance the taste and make flavor fullness. It also helps suspend solid particles, such as spices. It is also a preferred method of thickening liquids for those with swallowing disorders, since it does not change the color or flavor of foods or beverages at typical use levels.

It helps create the desired texture in many ice creams.

Cosmetic applications of xanthan gum include the use in tooth pastes, lotions, shampoos, cosmetic gels etc. Toothpaste often contains xanthan gum as a binder to keep the product uniform. In cosmetics, xanthan gum is used to prepare water gels as it has some skin hydrating properties.

Typical industrial applications of xanthan gum are the use in cleaners, paints, ceramic glazes, inks and oil drilling fluids. In the oil industry, xanthan gum is used in large quantities to thicken drilling mud. These fluids serve to carry the solids cut by the drilling bit back to the surface.