Neem extracts Market to Soar in the Near Future Owing to Growing Consumer Adoption

Neem extracts are extracted from neem seed, leaves, and bark and are utilised in a wide range of agricultural, cosmetic, and pharmaceutical goods. Because of its therapeutic characteristics, neem is an excellent ingredient in a variety of organic products.

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.

Due to the falling popularity of synthetic fertilisers and pesticides, demand for Neem extracts is predicted to develop in markets such as India, Russia, Vietnam, Korea, Japan, and China, among others. As governments and other non-governmental organisations (NGOs) in various nations educate farmers on the extended usage of bio-based fertilisers for long-term crop protection, demand for neem-based agro inputs is increasing. In industrialised countries such as the United States, the United Kingdom, Italy, Spain, and Canada, on the other hand, the government has imposed severe standards for the production of chemical-free fruits and vegetables. However, the market is severely constrained because to a scarcity of high-quality raw materials in sufficient 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.