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Global Neem Extract Market worth USD 1,882.9 million and CAGR 17.3% by 2021
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Neem is an ideal ingredient in various products due to its manifold medicinal properties. Neem trees are versatile in nature and grow in tropical and semi-tropical regions. Neem extracts are made from leaves, bark and neem seed. Neem extracts are used in various application sectors including pharmaceutical, agriculture, personal care and animal feeds.
Neem is becoming popular as an effective bio-fertilizer and bio-pesticide. Increasing awareness regarding the side effects of the synthetic chemicals in agricultural field is the major factor driving the neem extract market growth. Governmental regulation coupled with the versatility of the plant is expected to contribute impulse growth to the neem extract market. Growing demand for herbal cosmetic and pharmaceutical products is expected to boost the growth of neem extract market in coming years. However, decreasing neem plantation and lack of availability of raw material in developed countries is expected to have an adverse impact on neem extract market growth. Nonetheless, rising preference towards organic food is expected to offer new opportunities to the major participants during the coming years.
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Based on applications, the global neem extract market is bifurcated into pharmaceuticals, agriculture, personal care, animal feed and other. Agriculture was leading application segment of global neem extract market and expected to maintain its dominance throughout the forecast period. It accounted for over 72% share of the entire market in 2015. Moreover, personal care segment experienced significant growth in past few years due to the growing awareness of chemical-based personal care products such as soaps, shampoos, and cosmetics. The pharmaceutical segment accounted for around 8.7% market share in 2015 and expected to have significant growth due to the rising preference towards Ayurveda and natural treatment of diseases.
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Asia-Pacific was the largest market for neem extract market in the world due to the huge agriculture area. It accounted more than 58% of market share in terms of revenue in 2015. Presently, India is the largest producer and exporter of neem extracts products across the globe. Due to the stringent government regulation over chemical fertilizers in western countries, demand for neem extract is expected to boost in Europe and North America.
Companies in the neem extract market are majorly located in Asia Pacific. E.I.D Parry India Ltd., Gramin India Agri Businest, PJ Margo Pvt. Ltd, Neeming Australia, Ozone biotech, Prithvi exports, Agro extracts limited and Parker India group among others are some of the leading profiles in the neem extract market.
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