The global neem extracts market demand was 503.5 USD million in 2013 and is projected to grow at a CAGR of 14.8% from 2014 to 2020. The market is expected to witness growth on account of rising demand from various end-use industries including personal care, pharmaceutical, animal feed, and agriculture. Furthermore, increasing consumer awareness about the health benefits of neem, particularly in developed regions, is anticipated to boost the market growth over the forecast period.
Usage of chemical pesticides and fertilizers in farming results in decreasing the quality of the produce and has harmful effects on the ecology. This makes neem-based fertilizer and pesticide ideal for farming. Hence, rising demand for bio-based fertilizers, pesticides, and insecticides in developed and developing regions owing to the presence of stringent regulations implemented by various agencies is expected to fuel product demand over the forecast period.
Increasing demand for bio insecticides and bio pesticides in developed regions is projected to fuel market growth. Intimidating response received from consumers on the use of chemical pesticides due to environmental concerns is estimated to trigger product demand, especially in Asia Pacific in the near future. Chemical pesticides and insecticides have harmful effects on soil, water, and living organisms which make neem-based products ideal for these applications. Furthermore, the medicinal and pharmaceutical properties of these products are likely to escalate market growth. Neem extracts offer numerous medicinal benefits including reduced blood clotting, lowered blood pressure and cholesterol, eased palpitation, and regulated digestion.
Such benefits are anticipated to augment product growth in the pharmaceutical sector over the projected period. Demand for neem and its extracts have been high in the European region owing to the presence of stringent regulations for the production of chemically harvested fruits and vegetables especially in countries such as Italy and Spain. However, a notable demand-supply gap and high prices of neem products in the region are likely to hamper the market growth. Neem and its extracts are used extensively in the manufacture of high-quality herbal cosmetics and beauty products. The demand for these products has been increasing globally owing to their efficiency and zero side effects. Furthermore, leading herbal companies have been increasingly manufacturing products such as fairness creams, body lotions, hand creams using neem extracts to cope with the growing demand for these products in the U.S. and the UK.
Bio-fertilizers were one of the largest application segment and the trend is expected to continue on account of supporting government regulations. These regulations restrict the use of chemical-based fertilizers and pesticides owing to health hazards. This has resulted in forcing manufacturers to shift towards manufacturing bio-based products. Personal care is likely to be one of the fastest-growing application segments over the forecast period owing to increasing consumer demand for products derived from natural sources.
Neem extracts are employed in a wide range of personal care products including toothpaste, shampoos, and conditioners on account of its medicinal properties and long-term benefits. Additionally, they are being increasingly employed in pharmaceuticals due to its antimicrobial, antioxidant, and anti-inflammatory properties. These benefits are likely to augment the market demand over the next six years.
Growing demand for herbal and natural cosmetics and pharmaceutical products from consumers especially in developed regions is likely to boost the product demand. In spite of the remarkable development in the pharmaceutical industry and the use of synthetic drugs in Europe and North America, most of the population still relies on the usage of medicinal plants to get relief from illnesses. Neem extracts are one of the most favorable medicines employed owing to its anti-inflammatory, antifungal, antipyretic, hypoglycemic, spermicidal, diuretic, antimalarial, and antitumor properties, and these factors are anticipated to drive the market growth.
Asia Pacific was one of the largest regional markets owing to favorable climatic conditions, availability of raw material, and dominant agriculture activities in the region. Lack of availability of raw materials in developed regions such as North America and Europe is likely to be a major restraint for the market. In addition, the market in developed countries is highly challenged due to a lack of quality raw material in demanded quantities. Owing to the high supply-demand gap, prices of neem extracts are highly volatile thereby affecting the market growth.
Furthermore, the lack of advanced technology with companies engaged in neem extraction is likely to affect market demand over the next few years. Neem extracts are employed as skin cleansers, beauty enhancers, and glowing complexion. Hence the growth in the herbal cosmetic industry is anticipated to fuel neem extracts market over the forecast period. Moreover, an increasing number of herbal cosmetic manufacturing companies, demand neem oil and leaf powder in Europe, North America, and Asia Pacific, is expected to go north over the projected period.
The market is highly fragmented owing to increased penetration of small scale companies scattered across the world, especially in the Asia-Pacific region. The low manufacturing cost of neem extracts, increasing application scope across numerous industries and favorable climatic conditions for the production in China and India have forced market participants to eye Asia Pacific as a production hub for neem extracts.
Key market participants include Agro Extracts Limited, E.I.D. Parry, PJ Margo, Fortune Biotech, Ozone Biotech, Nikita Agro Industries, Parker Biotech, and Trifolio-M GmbH. Trifolio-M GmbH recently developed a commercially available neem seed kernel extracts known as NeemAzal--T/S, which is applied to soil for systemic granular plant protection.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
The current pandemic situation has created disruption in the manufacturing of agrochemicals by virtue of raw material availability. Furthermore, this continual trend shall have a cascading effect on food productivity and crop yields on economies that are predominantly agrarian, during a time when demand for Agri produce shall register a spike over the medium term. Governments across the developing world are vying to incrementally ease restrictions on the manufacturing of fertilizers and maintain seasonal agricultural activities in order to reduce concerns regarding food security, which is a critical indicator for determining the course of a supply gap in the industry. The report will account for Covid19 as a key market contributor.