Neem Extracts Market Size, Share, and COVID-19 Impact Analysis, By Application (Agriculture, Personal Care, Animal Feed, Pharmaceutical, and Others), and Regional Forecast, 2024-2032

The rising demand from several end-use industries, including personal care, animal feed, agriculture & farming, and pharmaceutical, primarily drives the neem extract market. Neem extract possesses several medicinal benefits, including anti-inflammatory properties, antimicrobial, antioxidant, antidiabetic, antiparasitic, and others which are expected to drive the market in the upcoming years.

Organic farming is one of the fastest-growing agricultural methods worldwide. The increasing emphasis on organic farming triggers the demand for bio-fertilizers and bio-pesticides. Using synthetic or chemical fertilizers destroys the beneficial microorganisms in the soil, which degrades soil fertility. The popularity of sustainable farming is flourishing globally due to the rising concern about maintaining soil quality. Hence, farmers are increasingly opting for bio-fertilizers globally. Neem extract is one of the major ingredients consumed in bio-fertilizers production. Thus, neem extract demand is expanding considerably in the agriculture industry. 

• According to the USDA National Agricultural Statistics Service Information's organic survey 2021, the U.S. accounted for 17,445 certified organic farms and recorded a 5% increase from the year 2019.

Additionally, developing countries' growing awareness regarding neem benefits as a natural pesticide will contribute to industry revenue growth.

• According to the Government of India Ministry of Agriculture & Farmer Welfare, the consumption of neem-based pesticides in India increased from 123 MT in 1995 to 7,682 MT in 2019.

The growing demand for natural ingredients-based personal care products within developed economies such as the U.S. and EU-5 countries is likely to support the market's steady growth. Neem extracts are significantly used in producing skincare, hair care, and herbal cosmetics products. Moreover, there use is also popular in anti-aging products because of their numerous functional properties, predominantly antioxidant and antimicrobial properties. For instance, in June 2020, Shisedio Company, a Japanese cosmetics manufacturing company, claimed that neem extracts and chameleon extracts helps in maintaining the skin's elasticity as well as control the thickness of capillaries. As a result, this helps in reducing the signs of aging.         

Impact of COVID-19 on the Neem Extracts Market

The sudden outbreak of the COVID-19 pandemic positively impacted the global market growth owing to the growing health concerns during the pandemic. Neem extract manufacturers across various economies faced hurdles and challenges in maintaining a sustainable business. The pandemic significantly impacted global supply chains, affecting the availability and distribution of neem products, including extract.  However, the changing consumer buying behavior increased the neem extract demand from the pharmaceutical industry. Numerous pharma industry players are introducing new Neem extract-based preventive medicines for COVID-19, which is expected to positively impact the market growth. For instances,

• In May 2021, Nisarga Biotech Pvt Ltd, an India-based herbal medicine manufacturing company, launched “Nisarga Neem Capsules” made from neem leaf extract. Based on several studies, the company claims that these capsules have been 55% effective in preventing the Covid-19 virus spread.

Key Insights

The report will cover the following key insights:

• Market Overview


• Macro-economic Factors


• Industry Growth and Impact


• Porter’s Five Forces Analysis


• Industry Dynamics – Drivers, Restraints, and Opportunities


• Market Trends and Recent Developments and New Product Launch


• Market Sizing, Estimation, Forecasting, and Growth Prospects


• Regional Analysis


• Competitive Landscape- Company overview, Product Portfolio, Financial Performance, and Strategic Developments


• COVID-19 Impact on the Market

Analysis by Application

Agriculture application is projected to hold the largest share in the global neem extracts market. The demand for bio-fertilizers and bio-pesticides is growing globally, especially in developed countries. The rising concerns regarding human health and the environment are encouraging the farmers to reduce the usage of chemical fertilizers. Therefore, the usage of bio-fertilizers is increasing globally. Neem extracts are also popularly used in producing pesticides because of their insecticidal, therapeutic, and soil conditioning properties.

The personal care segment is anticipated to be the fastest-growing segment in the global neem extracts market. Owing to the numerous functional properties such as antibacterial, anti-aging, antiseptic and antifungal, neem extracts are significantly used in skincare and hair care products. Furthermore, due to its medical and long-term health benefits, neem extracts are also becoming popular within the pharmaceutical segments.

Regional Analysis

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Asia Pacific is anticipated to hold the dominating market share in the global neem extracts market. The countries including India, Thailand, Cambodia, Indonesia, Malaysia, Burma, and Sri Lanka are the leading neem producing countries globally. Although neem plants have been planted across Asian and African countries, India contributes the majority to the global production. The favorable climatic conditions coupled with the abundant availability of raw materials are predicted to positively impact the regional industry’s growth.

North America is projected to witness a sizeable growth in the global neem extracts market due to the rising demand for neem extracts in different end-use applications, including personal care products, cosmetics, and animal feeds. Furthermore, the surging inclination towards chemical-free fertilizers and bio-pesticides within the agriculture sector is also expected to trigger the demand of neem extracts.  

Key Players Covered

The report will include the profiles of key players such as Agro Extracts Limited, PJ Margo Pvt Ltd., Gramin India Agri BusiNest, Parker India Group, Trifolio-M GmbH, Neeming Australia Pty Ltd, Bros India Group, Nikita Agro Industries, Fortune Biotech Ltd, and others.

Segmentation

Key Industry Developments

• In July 2020, Indian Farmers Fertiliser Cooperative Limited (IFFCO), a cooperative society engaging in manufacturing and marketing fertilizers, launched an organic manure fertilizer from de-oiled neem seeds. According to the company, these neem cakes act as a fertilizer with phosphorus, sodium, carbon, and potassium. It also protects the roots from pests and insects, including white ants, nematodes, and soil grubs.


• In November 2019, Nimbarka, a local Indian start-up, launched its neem ingredient-based personal & beauty care products, including milk face wash, hand wash, body lotion, shampoo, face scrub, and purifying gel.