Guar Gum Market Size, Share & Trends Analysis By Grade (Pharmaceutical, Industrial, Food), By Function, By Application (Oil & Gas, Food & Beverage), By Region, And Segment Forecasts, 2018 - 2025

Report Overview

The global guar gum market size was valued at USD 525.3 million in 2017 and is expected to register a CAGR of 4.4% from 2018 to 2025. Increasing demand for convenience food owing to changing eating habits is expected to have a significant impact on industry trends. Guar gum as an additive offers extended and stable shelf-life to processed food; this is anticipated to boost the market growth.

Growing product penetration in the pharmaceutical industry is expected to be one of the major factors driving the overall market growth. Aging population and increasing prevalence of non-communicable diseases and chronic disorders are anticipated to fuel the growth of the pharmaceutical industry, consequently resulting in a rise in product consumption.

The U.S. market observed a steep decline in consumption after 2014, owing to falling crude oil prices, which put a temporary halt to all exploration and production activities. However, the market is expected to witness a recovery in product consumption in the foreseeable future on account of the spurt in shale gas and oil output.

Product price is primarily determined by the cost of raw material, demand, and supply. Supply and demand are influenced by a number of underlying factors such as the availability of substitutes, current market trends, and growth of consumer industries. Future trade practices and current trading also affect the price movement of products in a short period of time.

India is the largest producer of guar gum accounting for nearly 80% of the total production. The product accounts for approximately one-third of the total agricultural exports in India. Hence, a growing number of government initiatives to encourage exports, in order to gain foreign currency, is expected to benefit the market.

However, the market faces challenges in terms of erratic production and supply owing to the dependency of crops on sufficient rainfall. Uncertainty in raw material supply is one of the major reasons behind product price fluctuations, which may drive industries such as food processing and textile to look for other economically viable substitutes.

Grade Insights

Demand for food-grade guar gum is expected to surge in line with a growing food processing industry, which is owing to a fast-paced lifestyle and changing eating habits. Rising demand for the product as a natural thickener in functional foods is expected to have a positive influence on the market.

Demand for industrial-grade guar gum is skyrocketing owing to the shale gas boom in North America. Since industrial grade guar gum is used in large quantities in the hydraulic fracking process for the extraction of shale oil and gas, demand is expected to increase in line with the U.S. shale oil and gas industry.

It finds a wide range of applications as thickener, sizing agent, wet-end strength additive, water-barrier, and gelling agent, flocculating agent for wastewater treatment, emulsifier, and binding agent. It is used in oil well fracturing and stimulation and mud drilling process in oilfields to maintain the viscosity of mud and remove drill waste.

A rapidly expanding pharmaceutical industry in Asia is expected to fuel demand for pharmaceutical grade guar gum in the foreseeable future. The rollout of universal healthcare, along with the expansion of Asia-based drug formulators and their attempts to provide innovative solutions, is expected to drive the pharmaceutical industry. This, in turn, is projected to drive demand for pharmaceutical grade guar gum over the forecast period.

Application Insights

The oil and gas industry emerged as the dominant application segment in recent years, owing to the shale gas boom in North America. An increase in exploration and drilling activities for the extraction of technically recoverable resources in China, Argentina, Algeria, and India is expected to boost segment growth.

The food and beverage industry was the second-largest application segment in the guar gum market in 2017. However, product usage in this segment was affected by an unusual surge in prices and instability in supply. Increasing trend of consuming organic foods is expected to drive demand for guar gum over the forecast period. Rising consumption of processed foods is also likely to contribute toward segment growth.

Guar gum and its derivatives are used in a number of pharmaceutical applications for various purposes. The product is widely used as a dietary fiber in capsules and as a binder in tablets owing to its adhesive properties. It is also used in a number of cosmetic and personal care products such as lotions, creams, and shampoos on account of its skin and hair rejuvenation properties.

It also finds application in a number of other industries such as pulp and paper, textile, mining, construction materials, and tobacco. The compound has become a primary gelling agent in slurry explosives in recent years. It is also used in the manufacturing of explosive products due to its thickening and water-proofing properties.

Function Insights

Guar gum is widely used as a stabilizer in ice creams to increase viscosity and shelf life by controlling ice crystallization during storage. The product is used as an emulsifier in a number of pharmaceutical applications such as creams, balms, and ointments. It is also used as an emulsifier in personal care products to mix water with essential oils.

It is used as a thickener and gelling agent in various foods such as jellies, desserts, and candies to improve product texture. Guar gum has also been used by a large number of petrochemical companies due to its thickening properties. It is used to increase the viscosity of water, which is used to extract oil and natural gas from shale rock formations.

It is used as a binder in toothpaste owing to its clear gel formulation and water-soluble properties. Furthermore, it is used to improve the stability, rheology, and appearance of the product. It can be used as a binder for fragmented tobacco fines to produce reconstituted tobacco sheets.

Guar gum is used as a wet-end strength additive in the pulp and paper industry to improve the physical properties of paper. It is used as a settling agent in the mining industry to speed up the settling of suspended particles. It is also used as an appetite depressant for weight loss and as a disintegrating agent in tablet formulations.

Regional Insights

In 2017, North America accounted for the largest share of close to 44.0% in terms of volume. The U.S., in particular, is estimated to be the largest market for guar gum owing to substantial growth in the adoption of hydraulic fracking and oil well drilling in the oil and gas industry. This trend is expected to continue over the forecast period due to the availability of massive technically recoverable oil and gas resources. Rise in oil rig count in the U.S. is one of the major factors for market growth in the region. This has resulted in increased product demand, thus pushing its prices. Moreover, efforts by the U.S. government to enhance exploration activities are expected to positively affect market growth.

The food processing sector is one of the major consumers of guar gum in Europe. Awareness regarding the product’s weight-loss benefits is expected to boost its demand. Despite disappointing exploration results and lack of investments in the oil and gas sector, exploration drilling in Europe is expected to bounce back in 2018, resulting in a rise in product consumption.

Growing population, rising disposable income, and rapid urbanization in Asia Pacific have spurred the consumption of processed food. This, in turn, is boosting product demand in this region. China and India are expected to be major consumers owing to rapid growth in oil and gas exploration activities and the presence of vast technically recoverable resources.

Guar Gum Market Share Insights

Major players in the market exhibit a strong global presence with diverse operations and a vast product portfolio. These companies maintain a controlled raw material supply and superior distribution and sales network. However, they often face competition from small-scale players as they offer quality products at a lower price, in order to attract a larger customer base.

Small-scale companies often have their facilities in one location and cater to local demand. Such companies have comparatively lesser global recognition, but they possess greater knowledge about regional markets. However, they are more vulnerable to the threat of substitutes in consumer industries.

Guar Gum Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global guar gum market report on the basis of grade, function, application, and region:

• Grade Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • Food Grade

  • Industrial Grade

  • Pharmaceutical Grade

• Function Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • Stabilizer & Emulsifier

  • Thickening & Gelling Agent

  • Binder

  • Friction Reducer

  • Others

• Application Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • Oil & Gas

  • Food & Beverage

  • Pharmaceuticals & Cosmetics

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • Netherlands

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Thailand

    • Indonesia

    • Republic of Korea

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates

    • South Africa