Neem Extract Global Market Report 2024

The neem extract market size has grown rapidly in recent years. It will grow from $2.66 billion in 2023 to $3 billion in 2024 at a compound annual growth rate (CAGR) of 12.9%. Historical growth can be attributed to traditional medicinal uses, the application of neem for natural pest control in agriculture, the demand in the skincare and cosmetics industry, growing awareness of neem's health benefits, and the promotion of environmentally friendly biopesticides.

The neem extract market size is expected to see rapid growth in the next few years. It will grow to $4.89 billion in 2028 at a compound annual growth rate (CAGR) of 13.0%. Anticipated growth in the forecast period is driven by increased demand for personal care products, sustained growth in organic farming, expansion within the nutraceuticals industry, government initiatives supporting herbal products, and the emergence of neem-based functional foods. Major trends expected in this period include research and development for new applications, broader applications in healthcare, rising demand in agriculture, heightened awareness of herbal remedies, and regulatory support for natural products.

The increasing demand for organic products is set to drive the growth of the neem extract market in the foreseeable future. Organic products, defined as items created exclusively from natural components without the use of artificial chemicals, hormones, antibiotics, or genetically modified organisms (GMOs), are witnessing a surge in popularity. Neem extract, renowned for its unique properties such as antibacterial and antifungal attributes, finds extensive application across diverse sectors, including agriculture, personal care goods, medicines, and animal feed. These properties make neem extract a sought-after ingredient for various organic and natural products. For example, in December 2022, data from the U.S. Department of Agriculture’s National Agricultural, a US-based government agency, revealed that total organic product sales reached $11.2 billion in 2021. This marked a substantial increase of $1.28 billion, reflecting a 13% growth from 2019. This robust growth in organic product sales underscores the rising consumer preference for organic goods. Consequently, the escalating demand for organic products is a pivotal factor propelling the growth of the neem extract market.

The expanding cosmetics industry is anticipated to be a major driving force behind the growth of the neem extract market in the foreseeable future. The cosmetics industry encompasses the production, marketing, and sale of products intended to enhance and beautify the human body's appearance. Neem extracts, when integrated into cosmetics, contribute natural and therapeutic qualities, providing a holistic and effective solution to various skin concerns. For instance, as of March 2021, the International Trade Administration, a US-based government agency, reported a thriving beauty and personal care market in Indonesia. Projections indicated revenues reaching $7.5 billion in 2021, with an estimated compound annual growth rate of 6.5% through 2025. The industry also observed a notable 25% increase in the registration of local cosmetic companies. This trend underscores the robust growth and significance of the cosmetics sector. Consequently, the expanding cosmetics industry stands out as a key driver propelling the growth of the neem extract market.

The neem extract market is witnessing a significant trend towards product innovations, with major companies actively developing new products to maintain their competitive positions. A notable example is Nisarga Biotech Pvt. Ltd., an India-based biotechnology business, which introduced Nisarga Neem Capsules in May 2021. These capsules have gained recognition as an effective preventative treatment for COVID-19. The associated study underwent peer review and received approval from the Journal of Alternative Therapies in Health and Medicine in the United States, marking it as legitimate and authentic original research on the US government's PubMed website. The Neem capsules, clinically validated and patented, leverage the anti-inflammatory properties of the ancient herb to support the body's natural immune response and disease resistance. This product not only enhances immunity but also serves as a cleanser and blood purifier, contributing to overall health and well-being.

Prominent companies in the neem extract market are actively investing in research and development to explore neem-based solutions, aiming to sustain their positions in the market. Research and development efforts play a pivotal role in unlocking the potential of neem extract, fostering innovation, enhancing product quality, and expanding markets on a global scale. A noteworthy example is the University of Ghana, a Ghana-based public university, which conducted a research dissemination workshop in October 2023. This workshop, organized by ARPPIS at the University of Ghana, focused on neem-based solutions for cultivating healthy vegetables, with a specific emphasis on promoting safe vegetable production. The event provided a valuable platform for diverse stakeholders, shedding light on the significance of neem-based solutions in fostering sustainable and safe vegetable farming practices in Ghana.

In January 2022, Indorama India Private Ltd., a chemical firm based in India, successfully completed the acquisition of Indo Gulf Fertilizers from Grasim Industries Limited, with the transaction amount remaining undisclosed. This strategic acquisition positions both entities to offer a comprehensive range of agricultural products to farmers, encompassing urea, phosphate fertilizers, potash, soil health solutions, seeds, and crop protection items. Through this integration, Indo Gulf Fertilizers, an India-based company specializing in the production of neem extracts derived from the Azadirachta Indica tree, becomes an integral part of Indorama India. The acquisition not only enhances product offerings but also strengthens the companies' ability to provide holistic solutions to the agricultural sector.

Major companies operating in the neem extract market report are East India Distilleries Parry Limited, Reddy International, Neeming Australia Pty Ltd., Parker Hannifin India Private Limited, Bros India Group, Gramin India Agri BusiNest, Agro Extracts Limited, Fortune Biotech Ltd., The Indian Neem Tree Company, Ozone Biotech, PJ Margo Pvt. Ltd., Trifolio-M-GmbH, GreeNeem Agri Pvt. Ltd., Neem India Products Pvt. Ltd., Phyto Life sciences Pvt. Ltd., Green Earth Products Pvt. Ltd., Ichimaru Pharcos Co. Ltd., Greenchem Biotech, Sunrise Agriland Development & Research Pvt. Ltd., Unjha Ayurvedic Pharmacy, Herbo Nutra Extract Private Limited, APEX INTERNATIONAL, MRIDA GREENS & DEVELOPMENT PRIVATE LIMITED, YAXON BIOCARE PVT. LTD., AYUSH HERBALS & HEALTHCARE PRIVATE LIMITED, Herbal Creations, Eisai Pharmaceuticals Pvt Ltd., Gsk Exports and Imports, Cymbio Pharma Pvt Ltd., Truzt Organic, Quimico, Ally Matthan Creations Pvt Ltd.

Asia-Pacific was the largest region in the global neem extracts market in 2023. Western Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the neem extract market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the neem extract market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Primary types of neem extract comprise leaf extract, fruit extract, and seed extract, along with bark extract. Neem leaf extract is derived from the leaves of the neem tree, commonly found in tropical climates. Formulations of neem extract can be dry or liquid, and they find application in diverse sectors such as food and beverages, pharmaceuticals, nutraceuticals, personal care, cosmetics, agriculture, farming, and other areas.

The neem extracts market research report is one of a series of new reports that provides neem extracts market statistics, including neem extracts industry global market size, regional shares, competitors with a neem extracts market share, detailed neem extracts market segments, market trends and opportunities, and any further data you may need to thrive in the neem extracts industry. This neem extracts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The neem extract market consists of sales of nanoparticle, azadirachta indica, azadirachtin, achene, neem oil, and nematode. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.