NEEM BASED PESTICIDES MARKET ANALYSIS

Neem Based Pesticides MarketSize and Trends

Market Outlook

• Global neem-based pesticides market is expected to witness significant growth over the forecast period, owing to growing awareness about the benefits of neem as a natural pesticide. Furthermore, demand for neem products such as neem cake, neem oil, and neem-based products is increasing tremendously from agriculture industry. Neem is considered as natural source of nutrients and phyto-chemicals and find its major application in organic farming.
• Major challenge faced by agriculture sector is to increase crop yield, in order to meet the requirements from rising population, without damaging the environment. Thus, neem-based pesticides are used as better alternative to synthetic pesticides. Therefore, growing adoption of bio-based pesticides is expected to boost demand for neem-based pesticides over the forecast period.
• On the basis of application, the global neem-based pesticides market is segmented into cereals and grains, oilseeds and pulses, fruits and vegetables, commercial crops, and others. In 2018, commercial crops accounted for the largest market share in terms of revenue. Commercial crops includes coffee, cotton, sugarcane, spices, tea, cocoa, and others. Increasing production of commercial crops including coffee is expected to upsurge demand for bio-based and neem pesticides over the forecast period. For instance, according to the International Coffee Organization, world coffee production in 2018-19 was 3.7%, higher than 2017-18 pegged at 168.8 million bags. This is expected to fuel growth of the neem-based pesticides market over the forecast period.
• Asia Pacific accounted for the largest market share in terms of revenue in 2018. Increasing population, rising food demand, and growing cash crops production in the countries such as China, Indonesia, and India is expected to drive demand for neem-based pesticides over the forecast period. For instance, according to the Food and Agriculture Organization of the United Nations, India is the second largest populous country with the population of 1.27 billion. The total food grain production in India was pegged at 275 million tons (MT) during 2017-18.
• Moreover, increasing environment concerns associated with the excessive use of synthetic chemical pesticides along with continuous degradation in the quality of soil is expected to boost demand for neem-based and other bio pesticides. This scenario is further expected to generate higher revenue for neem-based pesticides in Asia Pacific.
• High cost of neem-based pesticides in comparison to synthetic pesticides is expected to hamper growth of the neem-based pesticides market over the forecast period.