Report Overview

Global Guar Gum Market- Industry Trends & Forecast Report 2027

The global guar gum market was worth USD 774.1 million in 2020 and is further projected to reach USD 1,224.2 million by 2027, at a CAGR of 6.8 % during the forecast period (2021-2027). The global guar gum industry is primarily driven by the increased usage of guar gum as a food preservative in the food processing industry. In addition, the use of guar gum as a gelling agent in hydraulic fracturing applications in the oil and gas industry is a significant growth driver for the global guar gum market.

Source: BlueWeave Consulting

Global Guar Gum Market Overview

Guar gum is an excellent free-flowing powder that is extracted from the guar plant. Guar gum is a type of hydrocolloidal polysaccharide made up of galactose and mannose sugars. Guar gum powder is white to yellowish and has a slight odor. It has high solubility and thickening properties in both hot and cold water. Guar gum is used in a variety of industries, including food and beverage production, baking, oil and gas production, cosmetics, and pharmaceuticals. It is used as a preservative, gelling agent, and emulsifier in the food business. Guar gum is used in the beverage industry to preserve the viscosity of beverages and to make them low-calorie in the case of low-calorie beverages. Also, guar gum is used in the thickening of dyeing solutions in textile and carpet printing, which results in sharper printed patterns. Guar gum is also significantly used in petroleum extraction, particularly in the area of hydraulic fracturing. Additionally, guar gum has a wider application in the pharmaceutical industry, where it is used for making gels and tablets.

Global Guar Gum Market Trend

Growth Drivers

Increased penetration of guar gum in food and beverage industries

The global guar gum market is expected to experience substantial growth due to the high demand for guar gum in the food and beverage industry. According to the U.S. Department of Agriculture, approximately 36,486 food and beverage processing plants were owned by around 31,401 companies in the United States in 2021. Guar gum reduces crystal formation in frozen food items and functions as a binder and stabilizer to improve the shelf life of ice cream, thereby, driving the growth of the global guar gum market. Guar gum improves the smoothness of dairy products while maintaining uniform viscosity. Additionally, it controls thickness, gel formation, glazing, and moisture retention in confectionery products, resulting in high-quality confectionery, which in turn boosts the growth of the global guar gum market. Guar gum provides excellent viscosity control in drinks and reduces the calories in low-calorie beverages. The extensive use of guar gum in food and beverage products is the primary growth driver of the global guar gum market.

The Increased Use of Guar Gum by Pharmaceutical and Cosmetics Companies

Since pharmaceutical companies are the major users of guar gum, the emerging pharmaceutical industry is playing a key role in driving the growth of the global guar gum market. The demand for guar gum is rising as the volume of medicines produced increases. According to the European Federation of Pharmaceutical Industries and Associations, 62.3 % of new medications were launched in the United States between 2014 and 2019, compared to 18.4% in Europe. Guar gum is used as a binding agent, thickening agent, suspending agent, and stabilizing agent in the pharmaceutical industry, which is powering the growth of the global guar gum market. Guar gum is also a great viscosity modifier that swells rapidly in aqueous solutions, making it ideal for making gels and viscous dispersions. Guar gum also possesses binding qualities, making it excellent for manufacturing tablets to enhance the cohesiveness in the drug powder for tablet formation, thereby driving the growth of the global guar gum market. What’s more, guar gum also acts as a good disintegrator in tablet manufacturing. So that’s how the increasing demand for guar gum in the pharmaceutical industry is propelling the global guar gum market forward.

Restraints

Side Effects of Guar Gum

The global guar gum market has been impacted by major adverse effects such as pulmonary embolism, esophageal tear, small bowel obstruction, and luminal obstruction associated with high dosages of guar gum. Breathing problems, flushing, itching, and diarrhea are all common allergic reactions caused by excessive ingestion. When guar gum is used in excess in packaged meals, it can cause digestive issues, leaky gut syndrome, inflammatory bowel syndrome, and even serious conditions such as colon cancer. Moreover, guar gum, when used as an emulsifier, has the potential to alter healthy levels of bacteria levels, thereby contributing to chronic low-level inflammation. These are a few factors hindering the growth of the global guar gum market.

Impact of COVID-19

COVID-19 has had a negative impact on the global guar gum market as the supply of guar gum has been severely hampered due to lockdown and trade restrictions. To comply with governments' social distancing guidelines, major end-user companies around the globe had to curtail their production capacity, thereby lowering the demand for additives for the products. These problems combined to reduce revenue for major industry players, which is projected to impede investments in the global guar gum market in the foreseeable future. However, guar gum manufacturers who offer guar gum to pharmaceutical companies have seen an increase in business since pharma businesses have been increasingly employing guar gum in the production of tablets.  However, the overall count of pharmaceutical companies is insignificant compared to the consumer goods market; hence COVID-19 continues to wreak havoc on the global guar gum market.

Global Guar Gum Market: By Grade 

Based on the grade, the global guar gum market is divided into three segments-- food grade, pharmaceutical grade, and industrial grade. The demand for the food-grade segment is dominating the market because of the increasing food processing industries. Rising awareness of using natural preservatives in functional foods is also driving the growth of the market. The changing lifestyle and eating habits of the millennial population are also raising the demand for processed food, thereby contributing to the market's growth.

Nevertheless, the demand for industrial grades of guar gum is also skyrocketing because it is used in large quantities in the hydraulic fracking process for the extraction of shale oil and gas. Industrial grade is also used in the mud drilling process in the oilfields to maintain the viscosity of mud and to remove the drilling waste.

Source: BlueWeave Consulting

Global Guar Gum Market: Regional Insights 

Based on the region, the global guar gum market is segmented into North America, the Asia-Pacific, Europe, Latin America, and the Middle East & Africa. Because of the adoption of the trend of utilizing guar gum in hydraulic fracturing and oil well drilling in the oil and gas industry, North America accounted for the largest share of the global guar gum market.  Additionally, the United States government's initiatives to enhance oil drilling activities have increased the demand for guar gum globally. The food processing sector is also one of the major consumers of guar gum in North America. The busy lifestyle and changing eating habits of the population also fuel the growth of the global guar gum market.

Competitive landscape

The key players in the global guar gum market are Hindustan Gum & Chemicals, Jai Bharat Gum & Chemicals, Vikas WSP, Ltd., India Glycols, Ltd., Shree Ram Industries, Altrafine Gums, Lucid Group, Supreme Gum Pvt. Ltd., Cargill, Dabur, Neelkants Polymers, and other prominent players. To improve their production capabilities and product range, companies are consistently participating in alliances, acquisitions, and mergers.

Recent Developments

• In May 2021, Cargill acquired Leman Decoration Company which mainly deals in providing the services of cake decorations across the bakery. This acquisition will help Cargill grow in the ornamental market while also increasing revenue for the company's cocoa and chocolate businesses.

• In March 2021, India’s largest leading science-based company Dabur India Ltd. expanded its hair care segment with the launch of the ‘Dabur Vatika Select premium range of shampoos. Guar gums are increasingly utilized in shampoos for thickening and improved emulsions. Thus, renowned companies like Dabur are utilizing guar gum for launching new products and diversifying their product portfolio.

Scope of Report:

By Grade Type

• Food

• Industrial

• Pharmaceutical

By Application Type 

• Food and Beverages

• Oil and Gas

• Pharmaceuticals and Cosmetics

• Others

By Function

• Stabilizers and Emulsifiers

• Thickening and Gelling

• Binders

• Friction Reducers

• Others

  By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa