Guar Gum is a big deal! It is a global product that is very much in demand in the United States and throughout North America. In fact, the Guar Gum Market in North America is projected to be valued at USD 272.01 million in 2022. With an estimated Compound Annual Growth Rate (CAGR) of 8.5%, it is expected to reach USD 409.01 million by 2028. This market is experiencing rapid growth, showcasing its dynamic nature.

What products consumed by humans contain guar gum?

Guar gum is a versatile ingredient that enhances the texture and consistency of various foods and even medicines. It can be found in a wide range of delicious recipes, including soups, stews, ice cream, yogurt, and marinades. Additionally, plant-based milks like flax, almond, coconut, soy, and hemp also rely on the wonders of guar gum. Medically, Guar gum helps normalize the moisture content of the stool, absorbing excess liquid in those with diarrhea, and softening the stool in those with constipation.

Similar to other agricultural products, Guar Gum can face price increases due to adverse weather conditions that impact production. The production of Guar Gum in India, the primary manufacturing region, has been affected by limited rainfall in the past. Additionally, it is important to consider the potential surge in demand when other product ingredients are in high demand. For example, in August 2021, there was an increased demand for poultry product manufacturing, which depleted a significant portion of the available stock.

What is Guar gum?

Guar gum is the primary output derived from the processing of guar seeds. Guar gum is made from the endosperm of Cyamopsis tetragonolobus, a leguminous plant cultivated primarily in India and Pakistan for centuries. This valuable crop has been extensively used as food for both humans and animals making it an integral part of these regions’ agricultural practices.

Guar Gum Rides the Rollercoaster of Today’s Economy

During the second quarter of 2023, the Guar gum prices in the US market experienced fluctuations, showing a mixed trajectory. At the end of Q2, the price had declined by an average of 1.20%. Although there was a significant overall decrease in prices, there were some signs of relief in the market towards the end of the quarter. These fluctuations were primarily due to sporadic shifts in supply and demand dynamics. The market was impacted by weak demand and high inventories, which led to a decline in retail sales. Retailers faced challenges with excessive inventory, as they had ordered more to meet surges in demand during the outbreak, despite sluggish consumer demand. Moreover, the cost of energy decreased in recent months, driven by the global economic slowdown and a decline in oil prices, further contributing to the downward trend of Guar Gum prices. However, in June, the US market observed price increases in Guar Gum, which was caused by rising demand.

Looking ahead, there are difficulties such as higher interest rates, increased living costs, and reduced household savings that may hinder a swift recovery in the coming months. Additionally, subdued foreign demand conditions have been observed across various industries.

If you are seeking a bulk food ingredient supplier that can deliver guar gum, contact Lakeside Food Sales. We are supplier and distributor of Guar Gum for food and beverage manufacturers that require the best  guar gum food ingredients for their food products and recipes!