India Guar Gum Market Trends

Growth Drivers

• Growing Prevalence of Obesity Among People - India has a 40.3% obesity prevalence rate. South had the most zonal variance at 46.51%, and east had the lowest variation at 32.96%. Obesity rates were greater in urban than rural areas (44.17% vs. 36.08%), among women than men (41.88% vs. 38.67%), and among people over 40 than those under 40 (45.81% vs. 34.58%). Hence the demand for guar gum is estimated to increase. Guar gum may help with appetite suppression and weight loss, according to certain research. Fiber typically passes through the body undigested and may work to increase feelings of fullness while decreasing appetite. Further, people have become more health conscious and hence the preference is growing among them. Also, guar gum has no toxic chemical composition which is why they are more in demand among health-conscious people.

• Rising Production of Paper and Pulp - The output of paper in India has increased significantly throughout the years, rising from about 19 million tonnes in 2017–2018 to approximately 24 million tonnes in 2019–2020.

• Surge in Export of Processed Food from India - The Directorate General of Commercial Intelligence and Statistics (DGCI&S) recently released preliminary data showing that the total export of agricultural and processed food products doubled to USD 9598 million in April–July 2022 from USD 7397 million during the same period of the previous fiscal. In the first four months of the current Financial Year 2022-23 (April-July), as compared to the same period of FY 2021-22, exports of agricultural and processed food products increased by 30%.

• Increase in Adoption of Dairy Products - In India, more than 200 million metric tonnes of milk were consumed domestically as of 2022. When compared to the prior year, when the consumption amount was approximately 198 million metric tonnes, this represented an increase.

• Upsurge in Production of Gaur Gum - Across the world, India produces 80% of the guar, with Rajasthan providing 72% of the total.

Challenges

• Availability of Substitute - There are various substitutes available for guar gum in the market. Most commonly used as a thickener, stabilizer, or dispersant are carboxymethylcellulose and carboxymethyl-hydroxyethyl cellulose-based gum, starch, clear star, cassia Tora, and synthetic polymers. Other notable substitutes or alternatives to guar gum include locust bean gum, xanthan gum, which is used in a wide range of fresh and frozen baked goods and beverages, dips, dressings, soup mixes, and condiments. In the textile industry, tamarind kernel powder has considerably replaced guar gum, and in pet food and textiles, cassia tora is doing the same.
• Raw Material Shortage
• Volatility in Prices of Guar