Market World Neem Extracts Market Opportunities | Page 2

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.
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.
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The rising demand for neem extracts from pharmaceutical companies, owing to their anti-inflammatory, anti-
microbial, 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.