The Future of Guar Gum

As reported the Wall Street Journal and IMR:

"In 1998 IMR conducted a special profile of guar gum in the 4th quarter issue of The Quarterly Review of Food Hydrocolloids . At that time, the global consumption of guar gum was estimated at about 145,000 tonnes for all applications, food, industrial and oilfield. Consumption in 2011 is running at over 400,000 tonnes. Oilfield use in hydraulic fracturing accounts for most of the dramatic increase in consumption which has taken place in the last two years. The growth of 275% in volume over 13 years represents an annual compounded growth rate of 8.1% per year. In 1998, the total value of guar sales was about $200 million. At today's price of about $5.00/kg the total market value is about $2.0 BILLION. A tenfold increase in value over 13 years represents about 19.5% per year compound growth. Again it should be noted that, most of the growth in volume and value has been over the last two years.The situation for guar gum is complex and of great interest. There is a high level of concern over availability and price volatility."

The guar 'situation' has spurred strong efforts to replace it in food and non-food applications including oilfield. IMR is closely monitoring the possible replacement of guar in fracking fluids.

16th November 2011