Neem Extracts Market Report: Size, Share, Strategic Developments, and Growth Potential Estimation, 2023–2030

Market Overview

The neem extract market revenue is estimated at USD 1,395.6 million in 2023, and it will advance at a CAGR of 10.4% during 2024–2030, to reach USD 2,745.1 million by 2030. This is primarily attributed to the increasing demand for this product from the pharmaceutical, personal care, agriculture, and animal feed industries. The increasing awareness among consumers of the health benefits of neem, particularly in developed regions, is expected to boost the market over the forecast period. Since each form of neem extract offers unique qualities, it is a versatile natural solution to many health-related problems.

Growing Consumer Awareness of Healthy Alternatives

Neem extract is used in the manufacturing of dietary supplements, to aid in the regulation of blood sugar and blood pressure, prevention of diseases, and management of the weight. Globally, consumers are becoming more health-conscious, which influences the sales of nutritional supplements as safe substitutes to conventional medication. Additionally, as the awareness of the harms of chemical-based personal care products increases, consumers are focusing on organic products.

Thus, in May 2021, an Indian biotechnology business, Nisarga Biotech Pvt. Ltd., unveiled Nisarga neem capsules as a preventative treatment for COVID-19. This product enhances immunity and cleans and purifies the blood, thus promoting general health.

Leaf Extract Generates Highest Revenue and Is Fastest-Growing

Based on type, the leaf extract category is the largest, and it will also witness the highest CAGR in the forecast period.

The extract from the leaves is rich in compounds such as nimbidin, nimbnin, and nimbin, which possess antimicrobial properties. They are utilized in agriculture for managing pests, in skincare products for addressing redness and acne, to treat inflammation and improving digestion, and for enabling immunomodulation.

Moreover, fruit and seed extracts are composed of a natural repellent and insecticide known as azadirachtin, therefore used in agricultural products to protect soil and crops. Similarly, the bark extract is rich in compounds such as limonoids and tannins. It is used to maintain oral hygiene as it combats the oral bacteria. Additionally, since millennia, twigs of the tree have been used as a chewing stick to prevent gingivitis or tooth decay.

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Agricultural Applications Generate High Revenue

The application segment of the market receives a significant portion of the revenue from the agriculture category.

The demand for bio-based fertilizers is on the rise due to the adverse effects of chemical fertilizers on crops, soil, and the environment. Using chemical fertilizers increases the erosion rate and the salt content of the soil, thus resulting in a decreased quantity of the produce and harmful effect on the overall ecosystem. The spraying of chemical pesticides on fruits and vegetables can even result in food poisoning. This is because the chemicals used in pesticide production are carcinogenic and can be toxic if consumed due to negligence in washing the fruits and vegetables. On the other hand, bio-based ingredients, including neem extracts, pose no such threats.

In both developed and developing countries, the demand for bio-based agrochemicals is increasing due to health concerns and the regulations implemented by governments on the use of chemical-based fertilizers. This has prompted manufacturers to shift toward bio-based/organic products for farming purposes. Thus, to maintain the quality of the soil and prevent the harmful effects of synthetic pesticides, neem-based alternatives are increasingly being used.

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS), 2021 Organic Survey estimated the worth of the sale of organic products at USD 11.2 billion, an increase of USD 1.28 billion, or 13%, from 2019.

Neem extract is also used in small quantities in animal feed, as it assists animals in fighting bacteria and other pathogens. This encourages manufacturers to produce neem extracts, thereby resulting in easy access to these chemicals for the global agrarian community.

Similarly, the demand for natural and herbal cosmetics and pharmaceutical products is expected to increase in developed countries, which is likely to boost the market expansion. The neem plant exhibits a wide range of medicinal properties, such as antioxidant, antimicrobial, and anti-inflammatory, as it contains flavanoids, due to which it is employed in pharmaceutical products. Neem extracts are also used for their ability to purify blood, regulate blood pressure and insulin, reduce cholesterol, ease palpitations, and regulate digestion. Furthermore, they are effective in addressing various skin issues, such as blemishes, acne, and skin redness.

Despite the significant advancements in the pharmaceutical industry and the extensive use of synthetic drugs in Europe and North America, a considerable ratio of the population continues to depend on medicinal plants for alleviating illnesses. Since neem has diuretic, antipyretic, antifungal, spermicidal, and antitumor properties, its usage is rising.

Personal Care & Cosmetics Is a Fast-Growing Market

Over the coming years, rapid growth is expected in the personal care & cosmetics category, based on application.

As consumers seek safe and effective products, there has been a rapid shift from synthetic to natural/organic products. Essentially, the growing awareness of the side-effects of the long-term use of chemical-based products is resulting in the increasing demand for cosmetic and personal care ingredients derived from natural sources. Neem extracts have applications in a wide array of personal care products, such as shampoos and conditioners, where azadirachtin can help maintain scalp health and combat dandruff. Moreover, the extracts are used in toothpastes, face washes, and beauty creams due to their medicinal properties.

Neem Extract Producing Companies:

• Neeming Australia Pty. Ltd.
• E.I.D. Parry (India) Limited
• Agro Extract Limited
• P.J. Margo Pvt. Ltd.
• GreeNeem Agri Private Limited
• Ozone Biotech Pvt. Ltd.
• The Indian Neem Tree Company
• Fortune Biotech Ltd.
• Bayer AG
• Bros India Group
• Certis USA LLC
• Terramera Inc.
• Grupo Ultraquimia and Bioneem Technology Industria e Comercio Ltd.
• American Vanguard Corporation

Asia-Pacific To Be Largest Market for Neem Extracts

Due to the favorable climatic conditions in the Asia-Pacific region, along with the easy availability of raw material, it has been the largest regional market till now. Neem extracts have been used for their skin cleansing, complexion brightening, and beauty enhancing properties for centuries in the region. As a result, the growth in the herbal cosmetics industry is expected to drive the neem extracts market during the forecast period.

Moreover, for ages, people in India have used neem branches to brush teeth due to its antibacterial action. This is why many herbal cosmetics and Ayurvedic product companies occupy a strong significance in the country, including Dabur India Ltd., Baidyanath Group, Patanjali Ayurved Limited, and Emami Limited.

In addition, the extract is widely used in China for the production of organic fertilizers and pesticides. The country aims to check soil erosion and reduce its neem extract imports from India, South Korea, and other regional nations. Moreover, in Australia, the major applications for these chemicals are animal care products, such as shampoos, dog sprays, and animal feed.