Guar Market Update: How 2025 Crop & Trade Dynamics Are Shaping Supply & Demand

The global guar market is entering an important transition phase in 2025. With India remaining the largest producer and supplier of guar, recent monsoon trends, shifting demand patterns, and evolving trade policies are all shaping the outlook for this vital ingredient.

Strong Crop Outlook in India

This year’s Indian monsoon has performed better than average across key guar-growing regions. Farmers have reported average sowing levels, though some shifted acreage toward millets, mung beans, and cotton. Even so, India’s guar crop is expected to reach 10–11 million bags (approximately 1.0–1.1 million metric tons) in 2025 a healthy output that should help stabilize near-term supply. Lucid Guar Report 24 Sept 2025.

Demand Dynamics: Energy vs. Food & Industrial Uses

On the demand side, guar continues to face headwinds from the U.S. energy sector. The slowdown in oil and gas fracking, compounded by uncertainty around U.S. import tariffs, has reduced guar gum pull from this segment. However, guar is becoming increasingly competitive compared to PAC (polyacrylamide), the synthetic alternative used in slick-water fracking, particularly if tariffs make PAC imports from China and Europe more costly.

Meanwhile, guar demand in food, personal care, mining, paper, and explosives applications is proving resilient. These sectors, which benefit from Guar’s cost-efficiency and versatility, are showing steady or growing usage, helping to balance softer energy-sector demand. Lucid Guar Report 24 Sept 2025.

U.S. Import Tariffs: An Ongoing Risk Factor

Currently, guar gum imports from India face 50% tariffs in the United States, casting uncertainty on export flows. If these high tariffs persist, they could dampen India-to-U.S. guar trade. However, if tariffs are revised downward, Guar could quickly regain momentum in the American market, particularly as PAC costs rise.

Price Movements: Narrow & Under Pressure

In terms of pricing, guar seed and splits have been trading within a narrow band in recent weeks. Prices have generally trended downward, with volatility remaining under control. Notably, guar prices have not kept pace with average inflation in India since 2014, underscoring its competitiveness as a raw material, Lucid Guar Report 24 Sept 2025.

What This Means for Buyers

For manufacturers, formulators, and procurement teams, the guar market in late 2025 is defined by:

• Stable but limited supply arrivals from India’s Haryana region are expected to pick up in October.

• Soft demand from energy but steady industrial growth food, paper, personal care, and mining sectors are absorbing supply at lower pricing levels.

• Tariff uncertainty in the U.S. which could either restrict or boost Guar’s position versus synthetic alternatives.

At CTRM Group, we continue to monitor these developments closely to help our clients navigate supply chain risks and secure consistent, high-quality guar gum for diverse applications.