Guar Gum Market, Size, Share, Growth, Trends, and Forecast, 2030

Industry Prospective:

The global guar gum market size was worth around USD 830 million in 2021 and is predicted to grow to around USD 1377 million by 2028 with a compound annual growth rate (CAGR) of roughly 7.5% between 2022 and 2028. The report analyzes the global guar gum market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the guar gum market.

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Guar Gum Market: Overview

Guar gum is also known as Goma guar; it is a rich source of high-quality galactomannan polysaccharides. It is obtained from the guar seeds. The seeds of the plants are allowed to dry in the sun then they are separated and processed into flour known as guar gum powder. Guar gum splits also have many uses in different industries. However, guar gum is processed according to the requirement of the end product. Guar gum powder possesses more thickening capability than corn starch; thus, it is widely used as a thickener, plasticizer, and binder. It holds the natural ability to bind with water molecules and is easily soluble in water.

Key Insights

• As per the analysis shared by our research analyst, the global guar gum market is estimated to grow annually at a CAGR of around 7.5% over the forecast period (2022-2028).
•  In terms of revenue, the global guar gum market size was valued at around USD 830 million in 2021 and is projected to reach USD 1377 million, by 2028.
• Due to a variety of driving factors, the market is predicted to rise at a significant rate. The global guar gum market is projected to grow owing to increasing demand from the food & beverages industry.
• Based on the grade, the food grade segment is expected to dominate the market during the forecast period.
• Based on function, the stabilizer & emulsifier segment is projected to dominate the market during the forecast period.
• Based on the application, the food & beverage segment is projected to hold the majority of the market share during the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Guar Gum Market: Growth Drivers

Increasing the application of flavors in the food industry to drive the market growth

In the food business, guar gum is widely utilized as an emulsifier and binding agent. Its uses and attributes, such as binding, emulsifying, and controlled product release, among others, have made it crucial for the flavor industry. There are many different flavors, including color flavors, cloud flavors, emulsion flavors, and encapsulated flavors.

Guar gum is in high demand for manufacturing encapsulated flavors since it is an excellent emulsifier and binding agent that aids in the controlled release of flavors in a variety of food products. For instance, TasteTech Encapsulated Solutions has developed flavoring for gum using controlled-release technology, enabling gum to emit tastes over a sustained period. Thus, the increasing application of flavor in the food industry is expected to fuel the global guar gum market expansion over the forecast period.

Guar Gum Market: Restraints

The availability of alternative products and their toxic nature might be hampering the market growth

The expansion of the guar gum industry may be limited to some extent by the accessibility of substitute products like chia seeds and silicon fibers as well as the significant decline in oil prices influencing oil & gas exploration activity. Despite being accepted as a food ingredient in Europe, the European Commission has cautioned against importing guar gum due to possible high concentrations of dioxin and pentachlorophenol, two hazardous chemicals that might impair immunity. Thus, it acts as a restraining factor for market growth during the forecast period.

Guar Gum Market: Opportunities

Growing consumption of convenience food is expected to provide a lucrative opportunity for the market expansion

The growing consumption of convenience food is expected to provide a lucrative opportunity for the global guar gum market expansion during the forecast period. The busy consumer lifestyle is driving up demand for convenience food worldwide. This trend is also being fueled by increased disposable income and longer workweeks, among other factors. Guar gum is one of the primary food additives used to enhance the quality of convenience foods such as soups, cakes, pastries, bread, gravies, and snacks. During the forecast period, a rise in consumer interest in processed food products is anticipated to drive market expansion.

Guar Gum Market: Segmentation

The global guar gum market is segmented based on grade, function, application, and region

Based on the grade, the global market is bifurcated into food grade, industrial grade, and pharmaceutical grade. The food-grade segment is expected to dominate the market over the forecast period. The food-grade segment growth is attributed to the increasing food processing industry. Moreover, the rising demand for the product as a natural thickener in functional foods drives the market growth. On the other hand, the industrial grade segment is growing at the highest CAGR during the forecasted period.

This segment growth is attributable to the increasing exploration and production activities in the oil & gas industry across the globe owing to the increasing demand for energy is anticipated to flourish the market expansion. For instance, according to Enerdata, amid a global pandemic, the world's energy consumption recovered with a 5% growth in 2021 after declining by 4.5% in the previous year. This recovery is 3 points higher than the 2%/year average from the 2000 to 2019 period. Thus, the aforementioned facts drive the segmental growth during the forecast period.

Based on function, the market is segmented into stabilizers & emulsifiers, thickening & gelling agents, binders, friction reducers, and others. The stabilizer & emulsifier segment is projected to dominate the market during the forecast period. Ice cream uses guar gum as a stabilizer to boost viscosity and shelf life by preventing ice crystallization while being stored.

In personal care products, emulsifiers are used to combine water and essential oils. Besides, the thickening & gelling agent is growing at the highest CAGR throughout the analysis period. It is used to improve product texture in a variety of foods, including jellies, desserts, and sweets. Due to its thickening qualities, guar gum has also been utilized by a significant number of petrochemical industries. It is used to make water more viscous so that oil and natural gas can be extracted from shale rock formations.

Based on application, the global guar gum market is bifurcated into oil & gas, food & beverage, pharmaceutical & cosmetics, and others. The food & beverage segment is projected to hold the majority of the market share during the forecast period.

The growth in the segment is attributed to its widespread application in the industry for the manufacture of tastes, baked goods, cooked goods, hydrocolloids in beverage manufacturing, and emulsions in various liquid products, among other aspects. However, the oil & gas segment is expected to hold a significant market share during the forecast period due to the North American shale gas boom. Furthermore, growth in the market is anticipated to be boosted by a rise in exploration and drilling activities for the extraction of technically recoverable resources in China, Argentina, Algeria, and India.

Recent Developments:

• In December 2021, Solvay is collaborating with supply chain software provider BanQu to build a blockchain-based transactional platform for its Indian supply chain of guar gum, a vital ingredient in processed foods and natural hair care products. As part of its Sustainable Guar Initiative, the supplier is the first chemical company in the country to offer BanQu and its blockchain technology.
• In January 2021, Nexira, a global producer of natural ingredients and botanical extracts, acquired Unipektin Ingredients AG, a Swiss company specializing in natural hydrocolloids and premium ingredients. Unipektin is accountable for the production of locust bean gum, which is used for its thickening and stabilizing capabilities. Its product line also contains specialist ingredients such as tara gum, hydrolyzed guar gum, and beet fiber. This acquisition strengthens the company's position as a significant leader in natural plant-based ingredients, a dynamic sector that caters to consumers looking for novel sensory experiences as well as plant-based, natural, and sustainably produced alternatives.

Guar Gum Market Report Scope:

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Guar Gum Market: Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the global guar gum market during the forecast period. The growth in the region is attributed to the increasing demand for guar gum from the oil & gas sector. The United States, in particular, is expected to be the largest market for guar gum due to significant expansion in the oil and gas industry's adoption of hydraulic fracking and oil well drilling.

For instance, according to Baker Hughes, in 2022, the total active US rig count, which includes those drilling for natural gas, climbed by 2 to 784. Moreover, the demand for natural additives and processed food among consumers is expected to propel market growth. Furthermore, the presence of prominent players such as Ingredion, Cargill, and others is projected to flourish the market growth during the forecast period.

On the other hand, the Asia Pacific is expected to grow at the highest CAGR during the forecast period due to the growing industrial and manufacturing sector. Emerging economies such as China, India, and Japan account for the largest share of the Asia-Pacific guar gum market. Guar gum is widely employed in the pharmaceutical industry, and recent expansion in the pharmaceutical sector has been highest in China and India. For instance, according to India Ratings & Research, the Indian pharmaceutical market revenue is expected to be over 12% Y-o-Y in FY22.

Guar Gum Market: Competitive Analysis

The global guar gum market is dominated by players like Beneo GmbH., Palsgaard, Taiyo Kagaku Co. Ltd., Royal DSM, Kerry Group Plc, FMC Corporation, ADM, Ashland Inc., Danisco, and GUM Technology Corporation among others.

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The global guar gum market is segmented as follows:

By Grade

• Food Grade
• Industrial Grade
• Pharmaceutical Grade

By Function

• Stabilizer & Emulsifier
• Thickening & Gelling Agent
• Binder
• Friction Reducer
• Others

By Application

• Oil & Gas
• Food & Beverage
• Pharmaceutical & Cosmetics
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa