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Neem Extracts Market - Global Industry Size 2019

At present, neem is gaining popularity as an effective bio-pesticide and bio-fertilizer in the global market. Side effects of synthetic chemical based products are influencing consumers to shift to organic/ natural products. The global neem extracts market is expected to grow at a healthy CAGR over the next six years. Majority of its applications are expected to be in the fertilizers segment followed by animal feed and pet care.

Increase in demand for bio-pesticides and bio-fertilizers in the global market are expected to fuel the demand for neem extracts during the forecast period. Another major segment is the use of neem extract in production of herbal cosmetics which is expected to show sharp growth over the next six years. As number of herbal cosmetic manufacturing companies is proliferating, the demand of neem leaf powder and neem oil is going north.

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The demand for Neem extracts is expected to grow in the markets such as India, Russia, Vietnam, Korea, Japan and China among others, due to the declining popularity of synthetic fertilizers and pesticides. As government and other NGO’s in respective countries are educating the farmers for the extended use of bio based fertilizers for long term crop protection, the demand of neem based agro inputs are also shooting up. On the other hand, the government has made stringent regulations for producing chemical free fruits and vegetables in developed countries such as the U.S, UK, Italy, Spain and Canada. However, the market is highly challenged because of lack of quality raw material in demanded quantities. Due to demand and supply fluctuations, the prices are also highly volatile affecting the value chain at various levels. In addition, due to the lack of active neem extract companies in neem producing countries, the neem seeds and neem oil are being exported to developed countries, where sophisticated extraction techniques are used to extract Azadirachtin from the neem oil etc.

The global Neem extracts market was worth USD 495.6 million in 2013 and it is expected to reach USD 1126.8 million in 2019. Globally, the neem extracts market is expected to grow at an enormous CAGR of 14.7% from 2013 to 2019. The growth in the market is mainly attributed to growing demand for “Azadirachtin” (the active compound in neem oil) in both developed markets and developing markets such as the U.S., Mexico, Australia, Singapore, Thailand, Spain, Italy, UK, India, Vietnam and China among others.

Presently, Asia Pacific accounts for the largest market share in the neem extracts market followed by RoW. Majority of neem extracts’ revenue comes from the chemicals and fertilizers segment in Asia Pacific as it is primarily used as a bio-pesticide and bio-fertilizer. In RoW the neem extracts are largely used in animal feed category followed by agricultural applications. Over the next six years, the applications of neem extracts in the personal care segment are expected to grow at a rapid pace. At present, India is the largest producer of the neem extracts and over the next six years rapid growth in China would challenge the exports of neem extracts from India to Europe and North America.

The global neem extracts market is fragmented as with large number of small companies. Most of the Indian companies are engaged into exports of neem extracts to countries such as Germany, Spain, The U.S. Italy and Canada among others. Increasing demand for the neem extracts market over the next six year is expected to attract more number of players to enter the market. Some of the leading players in this market are E.I.D Perry India Ltd., P J Margo Pvt Ltd., Parker India Group Pvt.Ltd., Neeming Australia Pvt Ltd., Fortune Biotech Ltd. and Prithvi Exports.

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