Guar Gum Market Size, Share and COVID-19 Impact Analysis, By Grade (Food Grade, Industrial Grade, and Pharmaceutical Grade), Application (Food & Beverage {Bakery & Confectionery, Dairy & Frozen Food, Beverages, and Others}, Oil & Gas, Pharmaceuticals, Textiles, and Others) and Regional Forecast, 2023-2030

The guar gum market size was valued at USD 1.17 billion in 2022 and is projected to grow from USD 1.25 billion in 2023 to USD 2.01 billion by 2030, exhibiting a CAGR of 7.05% during 2023-2030. North America dominated the guar gum market with a market share of 50.46% in 2022.

Guar gum, known by several names such as guaran gum, goma guar, and cluster bean gum, is a natural galactomannan polysaccharide extracted from the endosperm of the guar plant. Guar crops (Cyamopsis tetragonoloba) are native to South Asian countries, including India and Pakistan, and have been cultivated in these regions for centuries. According to the ‘Ministry of Agriculture and Farmers Welfare,’ an Indian government ministry, the production of guar seeds drastically increased from 488.50 thousand tons (1998-99) to 1519.30 thousand tonnes (2019-20). Since then, this crop has been recognized as a multipurpose plant as it can serve as a vegetable, animal feed, and green manure crop in the agrarian sector.

Commercially, guaran gum has emerged as the most crucial derivative of the guar crop due to its diversified uses in various industries such as oil & gas, food processing, mining, paper, and others. Among these sectors, the demand for guaran gum has been rapidly growing in hydraulic fracturing (oil and gas industry) owing to its effective lubricant and gelling properties. It is one of the most biodegradable and cost-effective components, exhibiting high resistance toward thermal and mechanical degradation, which adds to its advantages. Similarly, the adoption of guaran gum is also steadily increasing in the food and pharmaceutical industries and is anticipated to grow faster in the near term.

COVID-19 IMPACT

Increased Adoption of Healthy Lifestyle during COVID-19 Pandemic Boosted Market Growth

The COVID-19 pandemic placed unforeseen stress on all sectors of the food supply chain, affecting farm cultivation, processing, transport, and final demand. Many of these disruptions resulted from policies implemented to curb the spread of the virus. However, the demand for natural products increased significantly during the pandemic due to rising concerns about health and wellness. These health-related concerns contributed to the guar gum market growth. During the pandemic, over half of the population shifted toward health-conscious lifestyles, prioritizing healthy food products. Consequently, food items enriched with natural ingredients became the preferred choice among health-conscious consumers, thereby increasing the demand for this gum. Although guaran gum is primarily used for industrial purposes, during the pandemic phase, there was a surge in demand for guar in the food sector.

Additionally, the export of gums experienced substantial growth in the year 2021-22, further boosting consumption rates. India, the largest producer of guar seeds and gums, exported more than 37% of gums to other countries compared to previous years. Given these various advantages, the market is anticipated to grow exponentially in the forthcoming years.

LATEST TRENDS

Surging Use of Guar Gum in the Pet Food Industry is an Ongoing Trend

For the past few years, the versatility and effectiveness of guar gum have been increasing, making it one of the most frequently used components by pet food manufacturers. Its remarkable chemical and physical properties play a vital role in maintaining the quality of pet food. One of the essential requirements for pet food is that it remains fresh and intact until consumed by pets, a criterion easily met by guar-based gum additives. Additionally, the product is responsible for improving pet cholesterol and amino acid levels. When combined with other food agents, it enhances the overall productivity and health of pets.

Furthermore, its exceptional thickening property drives its usage, especially in the canning process of pet foods. Presently, pet owners prioritize the quality of food given to pets and invest significant time researching ingredients and their sustaining value. Thus, advancements in the pet food market have paved the way for using guar-based gum as an essential ingredient in pet foods.

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DRIVING FACTORS

Growing Expansion of the Oil & Gas Industry Accelerates Guaran Gum Usage

Oil and gas are primary sectors in the energy market and play pivotal roles in the global economy as the main fuel sources worldwide. The systems and processes involved in producing natural gas and oil are highly complex and require state-of-the-art technology, where guar-based gums are essential. For instance, in oil mining operations, guar gum reduces the likelihood of corrosion. As oil extracted from the ground contains water content, it increases the possibility of corrosion in pipelines. It acts as a corrosion inhibitor in this context. Additionally, guaran powder functions as a flocculant in mining processes, aiding in the separation of solid fragments from ores to extract high-quality oil. Other benefits, such as its role as a viscosity stabilizer and its ability to fragment fluid minerals, further enhance the product’s utility.

As a result, regions with numerous refineries, such as North America and Europe, import substantial quantities of industrial-grade gums for use in the oil industry. According to the ‘Shellac and Forest Products Export Promotion Council’ (SHEFEXIL), a government agency, the U.S. imported guar gums valued at around USD 61.08 million in 2020-2021.

Soaring Health & Nutritional Benefits Increases the Guar Gum’s Intake 

The increasing consumer awareness concerning health and nutrition has led to a growing interest in natural and wholesome products, which serve as the primary driver for the market. Beyond its usage in the food and oil drilling sectors, this natural derivative offers numerous health benefits to consumers, contributing to its rising adoption. Several studies indicate that the consumption of guaran gum can help reduce the risk of diabetes, high cholesterol, and digestive issues. These advantages have encouraged food producers to incorporate this natural gum into various food preparations, including sauces, salads, baked products, and more. Additionally, other studies suggest that an appropriate intake of guaran gum could potentially minimize the risk of various types of cancers and bolster the immune system, leading to an increased intake of natural gum. Consequently, such instances are expected to boost the global guar gum market share during the forecast period.

RESTRAINING FACTORS

Fluctuating Prices of Guar Gums Hamper Market Growth 

The affordability factor stands as a major constraint for a significant portion of the global population. The soaring prices of products make it challenging for consumers to afford and include such items in their daily routines. Similarly, guaran gum and seeds are essential commodities that have witnessed an upward price trajectory in recent years. Increased demand from major importers such as China and the U.S., along with inadequate supply, speculation trading, and erratic rainfall, has contributed to this unaffordability. Moreover, guar's versatile applications across several industries also contribute to the elevated prices. According to ‘Guangrao Liuhe Chemical Co., Ltd.,’ a Qingdao-based manufacturer, the price of guar splits surged and reached around USD 2000/MT by the end of October 2021.

SEGMENTATION

By Grade Analysis

Industrial Grade Segment is Leading Due to Its Major Use in Oil & Gas Sector

Based on the grade, the market is segmented into food grade, industrial grade, and pharmaceutical grade. The industrial grade segment is the leading segment and holds the foremost position in the market. The role of these gums as a thickener, stabilizer, gelling agent, and emulsifier in numerous applications, such as geological drilling, water drilling, hydraulic fracturing, and others, make it a multi-quality product. For instance, the gums help cool down the drilling bits and easily solubilize the solvents used for oil drilling. Besides this, it is highly used as a floatation agent in mud formulations, well treatment, and wastewater treatment.

The food grade segment is also experiencing substantial growth due to the augmented demand for organic products and rising experiments of guaran gums in different food sectors, such as bakery, dairy, and others, further adding to the growth.

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By Application Analysis

Oil & Gas Segment Accounted for the Maximum Market Share Owing to its Highest Usage

Based on the application, the market is segmented into food & beverage, oil & gas, pharmaceuticals, textiles, and others. The oil & gas segment retains the top position and is anticipated to maintain market dominance during the forecast period. Guar-based gums play a pivotal role in the oil & gas industry due to their remarkable properties and efficiency, proving to be profitable in oil drilling processes. This gum serves as a thickener, suspending agent, or stabilizer for drilling fluids. Additionally, these gums regulate the viscosity levels of mud solutions, ensuring balanced flow properties of the mud. They are also utilized as deformers, suitable for all brine-based and water-based drilling fluids.

The food & beverage segment is also witnessing sharp growth and is projected to grow faster during the forecast period. The bakery & confectionery sub-segment holds the majority of the share as it is used in several confectionery items such as marshmallows, aerated confectioneries, fondants, gummies, pie fillings, and others. Its role as a texture improver, shelf life enhancer, and eight times the coagulating power compared to cornstarch makes guaran gum one of the essential ingredients in the baking industry.

REGIONAL INSIGHTS

Based on the region, the market is analyzed into North America, Europe, Asia Pacific, and the rest of the world.

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North America leads in terms of market revenue, holding the majority share (approximately 50%) in the market. The region's substantial growth is primarily attributed to the significant expansion of the oil & gas industry and the surging demand for processed foods. According to the government agency, the ‘U.S. Energy Information Administration,’ the U.S. market comprises approximately 129 petroleum refineries as of January 1, 2023. Moreover, the rising imports of cluster bean-based gums from India and Pakistan further support the region’s growth. In light of this, food manufacturers are also striving to replace synthetic additives with natural gums, as today's consumers are highly concerned about the ingredients present in their food items. These factors collectively promote the region’s growth.

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Europe emerges as the second fastest-growing region and is expected to double its growth pace in the upcoming years. Major factors supporting this growth include the significant rise in the number of energy industries (natural gas and oil) and prominent food manufacturers (such as Nestle SA, Danone SA, and Unilever) in the region. The current reduction in the consumption of processed foods aligns with modern consumers' inclination toward promoting healthy eating habits, necessitating companies to launch products using guar gum, thereby further boosting market growth in the region.

Asia Pacific is acknowledged as the largest producer and exporter of guar-based derivatives globally. India and Pakistan significantly contribute to the region's growth by exporting much of their yield to the U.S., China, and Germany. Furthermore, owing to favorable agro-climatic weather conditions compared to other countries, guar seeds are the most cultivated legume crop across the region, further fueling growth. In addition to production, gums find usage in various foodservice sectors and the oil industries, thus contributing to the market’s growth. India, among all regional countries, is expected to drive demand for guar gum in the oil & gas industries in the future.

The rest of the world, which includes Brazil, Saudi Arabia, and other countries, is experiencing slow growth currently; however, it is projected to accelerate in the coming years. Increasing demand for natural ingredient-infused food items and rising lactose intolerance are significant factors likely to bolster market growth.

KEY INDUSTRY PLAYERS

Growing Key Players Focus on Promoting Guaran Gum via Campaigns to Increase its Awareness Drives Market Growth

Some of the leading market players in the market include Cargill Corporation, Rama Gum Industries, Neelkanth Polymers, and DuPont de Nemours and Company, among others. The key players mainly aim to increase their product awareness by spreading the awareness of the products via digital media. In addition, the companies are working to increase their production capacity, which will later help drive their overall sales.

List of Key Companies Profiled:

• Cargill Corporation (U.S.)


• Ingredion Incorporated (U.S.)


• ALTRAFINE GUMS (India)


• VIKAS WSP LTD. (India)


• NEELKANTH POLYMERS (India) 


• ASHAPURA PROTEINS LTD. (India) 


• Hindustan Gum & Chemicals Ltd. (India)


• Shree Ram India Gums (India)


• India Glycols Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: Nexira, a leader in natural and botanical ingredients, introduced its latest range of efficient texturizers under the brand ‘Naltive’. Naltive offers three major types of hydrocolloids, including tara gum, locust bean gum, and guar specialties, for plant-based and dairy applications.


• April 2022: Solvay, a Belgian chemicals company, announced its latest partnership with Procter & Gamble (P&G), one of the biggest beauty companies, in its sustainable guar initiative farming program. With the help of this partnership, Solvay will be capable of increasing its impact by expanding its efforts to educate guar farmers, especially women farmers, regarding the knowledge and tools of good agricultural practices.


• July 2021: Techno Serve, a management services company, was recognized for its sustainable guar initiative by the American Chemistry Council, and achieved an award for sustainable farming. The award was given due to its dedication to working with American Chemistry Council members, all through the guar supply chain.


• April 2020: To save water for the future stage of life and to promote the campaign “Jal Hi Jeevan Hai,” Haryana’s chief minister urged the growers to adopt agricultural diversification and plant crops that require minimal water, such as guar, moong, maize, and others. This initiative will help the manufacturers to fuel the production of gums globally in the near term.


• March 2019: Batory Foods, a U.S.-based distributor of specialty food ingredients, announced the acquisition of Polypro International’s asset, another prominent distributor of hydrocolloids in the U.S.  With this addition of Polypro, Batory Foods is set to become one of the biggest distributors of restaurants (clean-label) across the U.S. market.

REPORT COVERAGES

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The global guar gum market research report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market sizing and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers and acquisitions, the regulatory scenario in critical countries, and key industry trends.

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