The global guar gum market is highly valued at over and it continues to grow. Based on research, it is estimated that the guar gum powder market will continue to grow with an average growth of over 5% per annum up to the year 2024. There are various drivers to this growth mainly from its uses in various industries.
Oil and Natural Gas Exploration
The oil exploration industry is one of the main drivers of demand for the guar powder. With the United States of America leading in its utilization, the demand for the powder has been constant.
The changing eating habits have also translated to an increase in consumption of convenience foods in which the guar gum powder is used as a food preservative. The guar gum offers a stable and extended shelf life to these processed foods and this is a major boost to the market growth.
Guar Gum Powder versus Other Fracking Agents
Hydraulic fracturing , also referred to as fracking is the process of injecting water and other chemicals deep underground create cracks and fissures and release fuel that is then pumped out in oil wells. This process has been successful at producing fuel in rock formations that were previously inaccessible.
Over the last 12 months there has been increasing competition between the guar gum powder and other fracking liquids such as the slick water and friction reducer from China. The cost of these products is at half of the cost of guar gum powder and may pose a threat to marketing of the guar gum.
Price Trend for Guar Gum Powder
With the petroleum industry being among the biggest contributor to demand, competition from substitutes has the potential to cause a drop in the prices. However, this did not happen due to the sustained and increasing demand from the oil exploration in the northern America. The guar seed futures in India are still trading high as a result of diminishing supplies and improving of exports.
The surge in the crude oil prices in the year 2019 has also contributed to continued demand for the guar gum powder.
Global Crude Oil Industry and production Stability
There has been a rapid increase in the production of crude oil and natural gas. This trend has created a positive outlook to the production of guar seed in India which is the main producer of the guar. In the month of august 2019, the province of Rajasthan has targeted to complete 100% planting of the targeted area of the guar gum plant. In addition the weather has been good, soil moisture has been adequate and if these conditions continue, then a good harvest is expected.
Guar Gum Market Worth and Trend by the Year 2022
Industry estimates show that the global guar gum powder market will be worth over 700 million USD by the year 2025. This market is expected to expand at a high rate not only from the hydraulic fracturing process but also from demand from food processing industries in countries such as china and Russia.