Guar Gum

Global Market Outook on Guar Gum

Global hydrocolloids market (2022–2023)

Global Market Size: 3.05 MMT

Supply Growth Rate: 15 percent

• The hydrocolloids supply is likely to have decreased in 2022, owing to limited supply of guar gum, xanthan gum, and LBG. In 2023, the supply is estimated to increase, as the production of guar gum and LBG is set to improve

Global Supply–Demand Analysis

• The hydrocolloids supply is likely to have decreased in 2022, owing to limited supply of guar gum, xanthan gum, and LBG. In 2023, the supply is estimated to increase, as the production of guar gum and LBG is set to improve

• Demand is estimated to remain stable with a slightly reduced consumption from food sector, as major global economies prepare to face the recession headwinds

• Corn starch leads the hydrocolloids market segment, followed by guar gum, due to the steep demand from the oil and gas industry and the food sector

• The use of xanthan gum, guar gum, Locust Bean Gum (LBG), and carrageenan in the food and beverage industry has been in demand, owing to the increasing health consciousness among the consumers and multi-functionality of hydrocolloids. Other hydrocolloids, such as alginates, agar, and CMC, hold a minor share

Global Demand by Application: Guar Gum

Demand for guar gum continues to rise in the crude oil industry. This is leading to other end-use industries, like food, textile, paper printing to replace guar gum with the other thickeners.

• Oil and gas, mining explosives are still the leading end user of guar gum, due to its friction and viscosity controlling properties

• As of 2022, Fast Hydrated Gum is the leading sub-segment of the global guar gum market under function segment, occupying 62 percent of the market share

• Use of guar gum in the food and beverage industry was estimated to be $183.7 million in value in 2022

Guar Gum Cost Structure Analysis

• Cost of cultivating guar seeds have been stable in the past few years. Cost has been rising proportionate to general inflation rates as major cost contributors are land and labor

• Miscellaneous cost includes cost of transportation, marketing and storage

• The seed production cost has increased by 50 percent over the past two years because of an increase in seed, land and labor prices

• Guar gum exports are expected to surge, backed by a rise in crude oil price

• Export demand from Europe, Latin America, China and Southeast Asia is expected to improve

Supply Chain Analysis of India

Despite the opaque nature of guar gum’s supply chain in India, demand continues to grow for the commodity. Close monitoring of the development of guar supply chain may help to predict future price and supply trend.

• These seeds are collected, stored, loaded into transport and taken to the mundi (market). It is a large market place, where all the agricultural produce of the farmers are brought and sold to ensure fair price to the farmers

• The produce brought by farmers are auctioned by authorized ‘aadats’ (commission agents)

• Auction participants mainly consist of traders, splitters, processors, and stockist. No exporters are involved here, as export of guar seeds is not allowed

• There are lot of traders, stockist, and brokers who have their office, situated in the mundi area itself. They deal with multiple commodities. However, guar has been their favorite recently. There are around 300–400 guar splitters located just in Rajasthan

• The major suppliers of guar chemicals in India, such as Vikas, HiChem, Rajasthan Gums, etc., are vertically integrated from making splits to exporting of the chemicals

• The guar market is fairly consolidated, as the top five processors are believed to be controlling more than 60 percent of the market