Gluten-free baked foods to drive the demand for guar gum

Value demand for guar gum is forecast to expand 7.1 percent yearly through 2021 to $120 million, according to a new report of the Freedonia Group, a Cleveland-based industry research firm. 

Overall growth of the industry is expected to be slower than the growth seen between 2011 and 2016, despite recovery in volume demand, as pricing undergoes a correction from the double-digit gains seen during the same period. However, prices will remain high, as feedstock supplies remain limited. 

Volume demand for guar gum is forecast to recover from the minor losses registered between 2011 and 2016, expanding almost 2 percent yearly to 53 million pounds in 2021. These gains will be driven primarily by reduced use of guar gum in oilfield applications, resulting from falling oil drilling in light of low oil prices. “In turn, more guar gum will become available for food and beverage applications,” opined analyst Christine O’Keefe. Stronger growth will be restrained by the continued high prices, despite slowing increases in pricing.