NEEM EXTRACTS MARKET ANALYSIS

Neem Extracts MarketSize and Trends

Market Dynamics:

• Increasing disposable income in Asian countries is a major factor driving growth of the neem extracts market, as customers can afford high quality natural beauty products for their daily use. For instance, according to the Ministry of Statistics and Programme Implementation (India), disposable income in India increased to around US$ 2693478.5 Mn in 2018 from US$ 2369487.41 Mn in 2017.
• Increasing use of organic fertilizers is also driving growth of the neem extracts market, globally. In a recent research published by the University of Calabar, the combination of neem with NPK fertilizer (60 kg N/ha NPK + 60 kg N/ha) significantly increased the growth of Okra during the research studies.

Market Outlook:

• Asia Pacific held a major share in the global neem extracts market in 2018. Rising preference for natural products over chemical-based cosmetics and significant growth of personal care industry in the region are some of the major drivers for the market growth. For instance, according to the ITA - International Trade Administration, Japan is one of the largest markets for personal care products, globally. In 2015, the cosmetics market in Japan was valued at US$ 13,208 according to the ITA.
• Development in research activities by major manufacturers of neem products in the recent past have resulted in growth of the neem extracts market in the U.S as well as Australia. For instance, in 2015, W R Grace & Co launched new Margosan-O, a neem-based pesticide and AgriDyne Technologies Inc. launched a neem extract, Azatin, for ornamental plants.
• As India has majority of neem plants in the world, the country has huge export potential. However, very few of the neem extract manufacturers have registered with the CIB – Central Insecticide Board. For instance, according to article published on Down to Earth Organization, only Godrej and ITC have been registered with CIB for their neem extract products Achook and RD-9 Repelin, respectively.
• New neem-based beauty products launched by personal care and beauty products manufacturers is driving growth of the neem extracts market in India. For instance, in October 2019, Nimbarka, an Indian natural beauty products manufacturer, launched a new neem-based product line for North Indian markets.