Neem Extracts Market Size and Gross Margin Analysis to 2020 by Million Insights

Neem Extracts Market Price & Revenue Professional
Survey Report - Industry Trends and Global Foresight
to 2020
“The rising demand for neem extracts can be attributed to the
increasing end use scope of the product in pharmaceuticals, personal
care, and agriculture. the increasing awareness regarding the benefits
of the product is expected to boost demand during the forecast period.
The backlash of synthetic products and environmental-friendly
products are expected to drive the growth of this market.”
The global Neem Extracts Market to reach around USD 1.32 billion by 2020. The rising demand for neem extracts can
be attributed to the increasing end use scope of the product in pharmaceuticals, personal care, and agriculture. In
addition, the increasing awareness regarding the benefits of the product is expected to boost demand during the
forecast period. The backlash of synthetic products and environmental-friendly products are expected to drive the
growth of this market.
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India, Burma and Sri Lanka are major exporters of neem extracts. Countries such as the U.S., the UK, and Australia are
also witnessing significant growth in neem cultivation owing to the increasing demand from the several end-use
verticals.
The stringent regulations, particularly in the UK, the U.S., Italy, and Spain, are encouraging the cultivation of fruits and
vegetables organically, which has promoted the use of neem extracts in fertilizers and pesticides.

The product is widely being used in pharmaceutical drugs, owing to its superior benefits such as reduction in blood
clotting, controlling of blood pressure & cholesterol, and improved digestion. The rapid growth of the pharmaceuticals
industry is therefore anticipated to boost the product demand during the forecast period.
The major challenge this industry faces is the high cost of neem extracts and the demand & supply gap, which can
restrict the growth of this industry over the coming years.
Neem and its extracts are widely used in the cosmetics industry owing to their properties of ‘zero side effects’. The
use of the product in skin care commodities such as body lotions, fairness creams, and hand wash will further augment
the product demand during the forecast period. Major FMCG and cosmetics companies, such as Himalaya, Garnier,
and Hindustan Unilever, are developing new neem-based products to leverage the growing consumer demand and
thereby strengthen their positions in the overall industry.
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Application Insights
The industry is expected to observe significant growth during the forecast period, primarily driven by growing
applications of the product in bio-fertilizers and bio-pesticides. The pesticide-like characteristics of the product are
largely attributable to Azadirachtin, which can protect the crops from over 200 different species of pests. The demand
for the product in this end-use vertical is anticipated to grow owing to the stringent laws against the use of chemical
fertilizers and pesticides.
The personal care products segment is expected to be the key driver during the forecast period. The rising consumer
awareness regarding the benefits of neem extracts and its zero side effects is expected to augment the growth of this
market.
The rising demand for neem extracts from pharmaceutical companies, owing to their anti-inflammatory, antimicrobial,
and anti-oxidant properties, is expected to further boost the product demand during the forecast period.
Regional Insights
The Asia Pacific is the largest market for neem extracts owing to the favorable climate for cultivation, particularly in
China, India, and Sri Lanka. These countries are also majorly focused on agriculture, making them potential markets
for expansion.
North America and Europe are expected to witness sluggish growth owing to the lack of availability of raw materials
and the resultant high pricing. This has created a demand-supply gap in these markets and will restrain the growth of
the industry in the regions over the coming years.

However, the growing focus on the cultivation of fruits and vegetables through organic means is anticipated to boost
the demand in Europe and North America during the forecast period. In addition, the increasing demand for natural
cosmetics from European and North American countries is expected to boost the demand for the product in this
region.
Competitive Insights
The increasing penetration of small players in the market has fragmented the market considerably, in recent years.
The availability of raw material and low cost of labor has attracted manufacturers to view Asia-Pacific, particularly
India and China, as the manufacturing hub of the product. The key participants of this industry are Trifolio-M GmbH,
Agro Extracts Limited, Ozone Biotech, Nikita Agro Industries, PJ Margo, Fortune Biotech, Parker Biotech and Trifolio-
M GmbH, and E.I.D. Parry.
Most players in this industry have adopted strategies such as new product developments and R&D to identify
pharmaceutical benefits to cure diseases such as cancer, and capacity expansion in order to acquire a competitive
edge over their competitors in terms of production outputs.
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Market Segments
Application Outlook (Revenue, USD Million, 2012 - 2020)
• Pharmaceuticals
• Personal care
• Biofertilizers
• Animal feed
• Others
Regional Outlook (Revenue, USD Million, 2012 - 2020)
• North America
• Europe
• Latin America

• Asia Pacific
• MEA
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