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Home > News > ECHEMI Focus > Analysis of the global guar gum market

Analysis of the global guar gum market

ECHEMI 2020-04-29

In 2017, the global guar gum market size was 525.3 million US dollars. By 2027, the global guar gum market will reach 886.6 million US dollars.


Due to the vigorous development of North American shale gas, the demand for industrial grade guar gum is soaring. Since industrial-grade guar gum is used extensively in the process of shale oil and natural gas extraction by hydraulic fracturing, this demand is expected to increase as the US shale oil and natural gas industry expands.


Due to the fast-paced lifestyle and changing eating habits, with the development of the food processing industry, the demand for food-grade guar is expected to increase substantially. As a natural thickener in functional foods, the demand for this product is growing and is expected to have a positive impact on the market.


It is expected that the increase in the penetration rate of products in the pharmaceutical industry will become one of the main factors driving the overall market growth. An aging population and the increasing prevalence of non-communicable and chronic diseases will promote the development of the pharmaceutical industry, resulting in an increase in the consumption of this product.

US Guar Gum Market Size, 2014-2025

Guar-gum-market-size

 

India is the largest guar producer, accounting for nearly 80% of total production. This product accounts for about one-third of India's total agricultural exports. Therefore, more and more government initiatives to encourage exports to obtain foreign exchange are expected to benefit the market.


However, because crops depend on sufficient rainfall, the market faces the challenge of unstable production and supply. Uncertainty in the supply of raw materials is one of the main reasons for the price fluctuations of this product, which may prompt industries such as food processing and textiles to find other economically feasible alternatives.



Application Overview of Guar Gum


Guar gum can be widely used as Thickener, sizing agent, wet end enhancer, waterproof gelling agent, wastewater treatment flocculant, Emulsifier and adhesive. It can be used in oilfield fracturing stimulation and mud drilling to maintain mud viscosity and remove drilling waste.


In recent years, due to the vigorous development of North American shale gas, the oil and gas industry has become a major application area. In China, Argentina, Algeria, and India, increased exploration and drilling activities to extract technically recoverable resources are expected to promote growth in this market.


In 2017, the food and beverage industry was the second largest application area in the guar gum market. However, the use of products in this area has been affected by abnormal price increases and unstable supply. It is expected that the trend of edible organic food will drive the demand for guar gum in the future. The growth of processed food consumption may also contribute to the growth of this market.


Guar gum is widely used as a stabilizer for ice cream. It can increase the viscosity and shelf life of ice cream by controlling the crystallization of ice cream during storage. It is used as a thickener and gelling agent in various foods such as jellies, desserts and sweets to improve product texture. Due to its transparent gel formulation and Water-soluble properties, it can be used as a binder in toothpaste. In addition, it is also used to improve product stability, rheology and product appearance. It can be used as a binder for crushed tobacco powder to produce regenerated tobacco flakes.

Global guar gum market application distribution in 2017

market-share-application

 

Guar gum and its derivatives are used in a variety of medical applications. This product has good adhesive properties and is widely used as dietary fiber in capsules and as a binder in tablets. Due to its skin and hair regenerating properties, it is also used in many cosmetic and personal care products such as lotions, creams and shampoos.


In the foreseeable future, the rapidly developing pharmaceutical industry in Asia is expected to drive the demand for pharmaceutical grade guar gum. The launch of General Medical, as well as the expansion of Asian drug formulators and their attempts to provide innovative solutions, are expected to drive the development of the pharmaceutical industry. In turn, it is expected to boost the demand for pharmaceutical grade guar gum during the forecast period.


It is also used in many other industries such as pulp and paper, textile, mining, construction materials and tobacco. In recent years, this compound has become the main gelling agent for slurry explosives. Due to its thickening and waterproof properties, it is also used to make explosive products.



Global market overview


In 2017, North America accounted for the largest share, close to 44.0%. Due to the substantial adoption of hydraulic fracturing and oil well drilling in the oil and gas industry, the US is estimated to be the largest market for guar gum. Due to the availability of a large number of technically recoverable oil and gas resources, this trend is expected to continue during the forecast period. The increase in the number of US oil rigs is one of the major factors in the growth of the market in the region. This led to an increase in demand for the product, which pushed up prices. In addition, the efforts of the US government to strengthen exploration activities are expected to have a positive impact on market growth.


Food processing is one of the major consumers of guar gum in Europe. People's understanding of the weight loss effect of this product is expected to boost its demand. Despite disappointing exploration results and lack of investment in the oil and gas fields, exploration drilling in Europe rebounded in 2018, leading to increased consumption of this product.


The growing population, increasing disposable income, and rapid urbanization in the Asia-Pacific region have stimulated the consumption of processed food. This in turn has driven the demand for this product. Because oil and gas exploration activities are growing rapidly and there are a large number of technically recoverable resources, China and India are expected to become major consumers.


The main players in this market have demonstrated strong global influence through diversified operations and a large product portfolio. These companies maintain a controlled supply of raw materials and a good distribution and sales network. However, they often face competition from small-scale participants because they offer high-quality products at lower prices in order to attract a larger customer base.


Small companies usually centralize their facilities to meet local needs. Such companies have relatively low global visibility, but they know more about regional markets. However, they are more vulnerable to threats from alternatives in the consumer industry.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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