Neem Extracts Market - Forecast(2023 - 2028)

Neem Extracts Market Overview

Neem Extracts Market size is estimated to reach $4.3 billion by 2027, growing at a CAGR of 5.7% during the forecast period 2022-2027. Neem extracts include the concentrated form of active or most important compounds discovered in neem. As the amounts of active compounds are typically not very high in seed leaves or additional plant parts, it is essential to acquire these chemicals in concentrated form and apply the concentrated extracts for the development of final products. Neem (Azadirachta indica) plant parts demonstrate an antimicrobial role by way of inhibitory impact on microbial growth/potentiality of cell wall breakdown. Azadirachtin, a complex tetranortriterpenoid limonoid existing in seeds, is the essential constituent accounting for both antifeedant and toxic impacts in insects. Neem leaf extract, including polyphenols that conform to oral surfaces, has the possibility to offer long-lasting antibacterial and synergic antioxidant actions when in complex with bacteria, red blood cells and lisozyme. Thus, it might be specifically efficient in periodontal ailments. Neem’s antioxidant and anti-inflammatory characteristics may assist in combating oxidative stress, which may in turn advance liver and kidney health. Oxidative stress is brought about by a buildup of unstable molecules termed free radicals. The antiseptic, anti-inflammatory, antioxidant, and immune-boosting characteristics of neem may advance oral health. Though more research is required, investigations indicate that neem may alleviate pain and assist in treating gingivitis, periodontitis, and tooth decay. Typical areas of Neem Extracts Industry applications include healthcare, agriculture and personal care.

The surging R&D activities offer varied uses of neem extracts for agricultural products and is set to drive the Neem Extracts Market. The different ailments that can be cured by the application of neem products include gingivitis, indigestion, oral issues, skin issues, eye issues and more together with the soaring antioxidant characteristics of neem leaf extract are set to propel the growth of the Neem Extracts Market during the forecast period 2022-2027. This represents the Neem Extracts Industry Outlook.

Neem Extracts Market

The report: “Neem Extracts Market Report - Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments in the Neem Extracts Market.

Key Takeaways

Neem Extracts Market: Market Share (%) By Region, 2021

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Neem Extracts Market Segment Analysis – By Source Type:

The Neem Extracts Market based on source type can be further segmented into Leaf Extract, Fruit And Seed Extract and Bark Extract. The Leaf Extract Segment held the largest Neem Extracts market share in 2021. This growth is owing to the surging application of neem leaf extract to cure hair and skin issues. Neem leaf and its components have been shown to exhibit immunomodulatory, anti-inflammatory, antihyperglycaemic, antiulcer, antimalarial, antifungal, antibacterial, antiviral, antioxidant, antimutagenic and anticarcinogenic characteristics. The soaring application of neem leaf extract to cure dental and diabetes is further propelling the growth of the Leaf Extract segment.

Furthermore, the Bark Extract segment is estimated to grow with the fastest CAGR of 7.1% during the forecast period 2022-2027. The fastest growth can be due to the heightening demand for bark extract and the soaring count of Ayurveda firms producing medications and personal care products through the application of bark extract together with the antioxidant characteristics of neem extracts in the Asia-Pacific region.

Neem Extracts Market Segment Analysis – By Application:

The Neem Extracts Market based on application can be further segmented into Pharmaceuticals And Nutraceuticals, Cosmetics And Personal Care, Agriculture And Farming, Chemicals And Fertilizers, Food And Beverages, Animal Feed and Others. The Pharmaceuticals And Nutraceuticals Segment held the largest Neem Extracts market share in 2021. This growth is owing to the surging inclusion of neem extracts to nutraceuticals and dietary supplements to decrease cholesterol and blood pressure levels in the body. Neem extracts have antioxidant characteristics. The heightening inclination of consumers towards bio-based extracts and essential oils is further propelling the growth of this segment.

Furthermore, the Cosmetics And Personal Care segment is estimated to grow with the fastest CAGR of 6.5% during the forecast period 2022-2027. This can be due to the extensive application of neem leaf, bark, fruit and seed extracts to produce premium-quality personal care products together with the antioxidant characteristics of neem extracts.

Neem Extracts Market Segment Analysis – By Geography:

The Neem Extracts Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America and Rest of the World. Asia-Pacific (Neem Extracts Market) held the largest Neem Extracts market share with 38% of the overall market in 2021. The growth of this region is owing to the supportive climatic conditions in the Asia-Pacific region. More than 140 diverse active compounds have been isolated from different portions of the Neem plant and these active compounds provide neem its antioxidant, antimicrobial, antiparasitic, anti-inflammatory, antidiabetic, and wound-healing characteristics. The surging emphasis on agricultural activities, the greater accessibility of raw material and soaring significance provided to neem by people owing to its medicinal characteristics are further propelling the growth of the Neem Extracts Market in the Asia-Pacific region.

Furthermore, the North America region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like the heightening count of herbal cosmetic manufacturing firms requiring neem oil and leaf powder in the North American region. The soaring intake of neem extracts by countries like U.S. and Canada together with antioxidant characteristics of neem extracts are further fuelling the progress of the Neem Extracts Market in the North American region. 

Neem Extracts Market Drivers

Surging Applications of Neem Extracts as Pest Control Agents are Projected to Drive the Growth of Neem Extracts Market:

Neem extracts and azadirachtin are nonneurotoxic pest control agents that display exceptional insect selectivity. Despite extensive research endeavors, the mode of action of azadirachtin has not been clarified at the cellular or biochemical level. Neem preparations have disincentive or antifeedant actions against numerous insect species, and azadirachtin restricts feeding at 0.01–1 ppm concentrations. Investigations of neem extracts in breast and prostate cancer cell lines have been demonstrated to have antiproliferative and proapoptotic actions, though their mechanism of action has been poorly investigated (Mahapatra et al., 2011; Arumugam et al., 2014). Amidst the examined mechanisms of action, it has been discovered that neem leaf extracts boost the expression of 40 genes in the C4-2B and PC-3M-luc2 cell lines of prostate cancer. Amidst these genes are antioxidant enzymes (e.g., GCLM and TXNRD1), and those related to cell cycle arrest (e.g., SESN2 and MDM2) (complete list in Mahapatra et al., 2011). Also, among the regulated genes were AKR1C2, AKR1C3, and AKR1B10, which are connected to the metabolism of dihydrotestosterone (DHT) in prostate cells. The boost in the latter genes is connected to a greater catabolism of DHT and a lesser development of prostate cancer. The extract also decreased the expression of genes connected to tumor growth, like SMC2, SMC3, SMC4, STAG2, TFPI, and HELLS, amidst others (Mahapatra et al., 2011). The Neem Extracts Industry application includes the extensive utilization of neem and its extracts in the cosmetics industry owing to their characteristics of "zero side-effects". The surging applications of Neem Extracts are therefore fuelling the growth of the Neem Extracts Market during the forecast period 2022-2027. 

Soaring Advantages of Neem Extracts such as providing Antioxidant and Anti-Inflammatory Properties are Expected to Boost the Growth of the Neem Extracts Market:

Neem bundles over 140 active compounds that may provide it abundant antioxidant and anti-inflammatory impacts. It has long acted as a treatment for ulcers, gastrointestinal troubles, gingivitis and brain disorders. Neem seed extract includes azadirachtin, an active compound that may combat parasites that influence hair and skin, like lice. Azadirachtin performs by disorganizing parasite growth and intervening with reproduction and additional cellular processes. In an investigation that tested the efficiency of a neem-based shampoo on head lice in children, leaving shampoo in the hair for 10 minutes destroyed the lice while being mild on the skin. Neem extract and nimbidin, a compound discovered in neem oil, may also treat dandruff owing to its anti-inflammatory and antimicrobial characteristics. Dandruff and scalp irritation may follow from fungal buildup on the scalp. Chewing neem bark to advance oral hygiene is a typical practice in India. Neem’s antioxidant and anti-inflammatory characteristics may assist in combating oxidative stress, which may in turn advance liver and kidney health. Oxidative stress is brought about by a buildup of unstable molecules termed free radicals. Though the body organically generates free radicals as a byproduct of metabolism, external sources raise their presence. Certain medicines, including cancer medication, painkillers, and antipsychotics, may add to oxidative stress, resulting in tissue damage in the liver and kidneys. Interestingly, one investigation on rats discovered that neem leaf extract decreased liver damage induced by high-dose acetaminophen. These great benefits of neem extracts make it useful in the healthcare sector and therefore the healthcare sector is one of the essential areas of the Neem Extracts Industry applications. The soaring advantages of Neem Extracts are therefore driving the growth of the Neem Extracts Market during the forecast period 2022-2027.

Neem Extracts Market Challenges

Hazards and Possible Side Effects of Neem Extracts are Hampering the Growth of the Neem Extracts Market:

Though neem products are derived from natural sources, they are not innately secure for human application. Therefore, it is vital to take precautions when utilizing neem products. Neem seed extracts include different fatty acids and around 2% bitters, which are regarded toxic. Levels of these bitters differ between products and may be affected by extraction and storage techniques. Oral consumption of any neem product needs to be treated with extreme caution, if not avoid it altogether. In certain cases, infants have endured serious poisoning subsequent to being given neem oil at doses of 0.18–1.06 ounces (5–30 mL). Similarly, one man endured neurological and psychotic symptoms subsequent to partaking 2.1 ounces (60 mL) of neem oil. Anecdotal evidence connects exorbitant neem leaf tea consumption to kidney failure. Furthermore, people consuming diabetes medicines need to consult their physician prior to utilizing neem to avert the hazard of very low blood sugar levels These issues are thus hampering the growth of the Neem Extracts Market.

Neem Extracts Industry Outlook

Expansions, novel product launches, mergers and acquisitions, partnerships and R&D activities are key strategies adopted by players in the Neem Extracts Market. The top 10 companies in the Neem Extracts market are:

1. Patanjali Ayurveda
2. Neeming Australia
3. PARKER INDIA
4. Ozone Biotech
5. Prithvi Exports
6. Kahan Biotech Pvt. Ltd.
7. P J Margo Pvt Ltd.
8. Agro Extracts Limited
9. Gramin India Agri Businest
10. Nimbarka

Recent Developments

• In February 2021, Vestige Marketing Pvt. Ltd., one of India’s leading home-grown direct selling firms and the only Indian firm in the world’s top 30 direct selling companies (as per the 2020 DSN Global 100 ranking), re-launched one of its recognized home hygiene products under the sub-brand Hyvest in a novel avatar. Hyvest Ultra Shield is fortified with the potential of Neem that includes anti-viral, anti-bacterial and anti-fungal characteristics. Hyvest Ultra Shield, powered by Neem is a water-based multipurpose, non-harmful disinfectant spray with Neem extracts that provides long-lasting protection for up to 15 days.

• In December 2019, Yoga guru Baba Ramdev's Patanjali Ayurved made its earliest large acquisition. It paid Rs 4,350 crore to take over soya food brand Nutrela-maker Ruchi Soya by way of an insolvency process. The gain will assist Patanjali to obtain edible oil plants as also soyabean oil brands like Mahakosh and Ruchi Gold.

• In October 2019, considering the fascinating characteristics of neem, a startup, Mohali-based Nimbarka Industries Pvt. Ltd, introduced an all neem based personal and beauty care product line under the brand name ‘Nimbarka’. At the beginning. six products were launched in the North India markets – Neem Deep Purifying Gel, Neem & Milk Face Wash, Neem Face Scrub, Neem Shampoo, Neem Body Lotion and Neem Hand Wash. The firm is also looking at the international market by way of ecommerce. This concludes the Neem Extracts Industry Outlook.

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