Press release
Neem Extracts Market: Growing Preference for Natural & Herbal Ingredients to Fuel Demand
Derived from neem leaves, seeds, and bark, neem extract has gained much importance over the decades for its medicinal properties. Its usage in the cosmetics, agriculture, and pharmaceutical industries can be attributed mainly to the fact that an increasing number of people around the world have realized the adverse effects resulting from prolonged use of chemical-based personal care and agriculture products.
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In the pharmaceutical industry, neem extracts help in regulated digestion, lower cholesterol and blood pressured, eased palpitations, and reduced blood clotting. In the personal care sector, neem extract is used in body lotions, fairness creams, and hand creams among others owing to zero side effects resulting from its application. The global neem extract market is slated to value US$1,126.8 mn by 2019, exhibiting a double-digit CAGR during the forecast period.
Growing Preference for Natural and Herbal Ingredients Ups Demand in Personal Care Industry
By way of application, the global market for neem extract is divided into pharmaceuticals, personal care, animal feed, and chemicals and fertilizers. Fertilizers are a key application area for neem extracts owing to the soaring demand for bio-insecticides and bio-pesticides, mainly in agriculture-centric regions such as Asia Pacific. Growing awareness among consumers and strict government regulations pertaining to the harmful effects of chemical fertilizers on personal health and the overall environment has played a major role in the rising uptake of neem extract as a key ingredient in many biofertilizers.
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The personal care and cosmetics industry is also a key application segment, with an increasing number of consumers leaning toward herbal beauty care products. Natural ingredients are in great demand and neem extracts – with their plethora of benefits – are a key ingredient. In addition to this, the antioxidant, antimicrobial, and anti-inflammatory advantages presented by neem extract makes them an important element in the pharmaceutical sector.
Market to Remain Strong in Asia Pacific owing to Easy Availability of Raw Material
The global market for neem extracts is segmented on the basis of geography into Asia Pacific, Europe, North America, and Rest of the World. Asia Pacific has been identified as one of the leading and most promising markets for neem extract, mainly due to favorable climatic conditions. Apart from this, major focus on agricultural activities in the region, the greater availability of raw material, and increased importance given to neem by people owing to its medicinal properties are factors also contributing to the growth of the Asia Pacific market. Considering that India is a key exporter of neem extract, the regional market has been gaining added impetus.
The Europe and North America markets for neem extract have been gaining prominence of late as regulations get even stricter regarding the use of synthetic agricultural ingredients in personal care products and cosmetics. Therefore, as herbal ingredients gain preference among consumers, the adoption of neem extracts in beauty products in these two regions will continue to rise.
Neeming Australia Pvt. Ltd., Parker India Group Pvt. Ltd., Ozone Biotech, Prithvi Exports, Fortune Biotech Ltd., P J Margo Pvt Ltd., E.I.D Perry India Ltd., Trifolio-M GmbH, and Agro Extracts Limited are some of the prominent names in the neem extracts market, hinting at the fragmented nature of this market. An increasing number of smaller players has also rendered the neem extracts market rather fragmented. This can be attributed to favorable climatic conditions in several parts of APAC, growing scope of application of neem extracts in a wide range of industries, and low manufacturing cost.
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