Global Neem Oil and Concentrates Market - 2023-2030

Global Neem Oil and Concentrates Market - 2023-2030

Global Neem Oil and Concentrates Market reached US$ 2.2 billion in 2022 and is expected to reach US$ 6.4 billion by 2030, growing with a CAGR of 14.5% during the forecast period 2023-2030.

The increasing incorporation of neem oil into cosmetic and personal care products is driven by its therapeutic properties, such as anti-inflammatory and antibacterial qualities. The rising trend towards natural ingredients in the cosmetics industry, coupled with consumers' preference for skincare products that provide therapeutic benefits, contributes to the growing utilization of neem oil in this sector.
rganic fertilizers and biopesticides both make extensive use of neem oil in farming. Because neem-based solutions don't harm the environment like traditional chemical pesticides do, farmers are using them more and more to solve insect problems. Within the agriculture industry, the market for neem oil is expanding due to the trend toward organic and sustainable farming methods.

Asia-Pacific is among the growing regions in the global neem oil and concentrates market covering more than 1/3rd of the market. Growing global demand for green products has given rise to a focus on organic and sustainable agricultural methods in the Asia-Pacific. Neem oil complements the region's dedication to sustainable agriculture well because of its inherent qualities that promote soil enrichment and insect control.

Dynamics

Expanding Use of Neem Oil Concentrates in the Agricultural Industry

The usage of neem oil concentrates in agriculture is rising, which is driving the global market for neem oil concentrates. The neem tree (Azadirachta Indica) yields neem oil, which has become more and more popular in agriculture because of its many benefits and diverse uses. As agribusiness looks for more ecologically friendly and sustainable solutions, there is an increasing demand for neem oil concentrates.

For Instance, in 2022, SBM Life Science France entered an exclusive partnership with AXIOMA via JdC Garden Trends, introducing a plant expansion based on natural extracts to promote vegetable garden plant growth. The collaboration reflects their commitment to responsible innovation, resulting in the finalization of a garden beauty line. An exclusive distribution supply agreement has been signed for this innovative product range.

Increasing Demand in Organic Products

The market for neem oil concentrates is expanding due to the rising demand for organic goods. The neem tree yields neem oil, which has become increasingly popular recently. Neem oil concentrates are among the organic items in high demand due to growing customer concerns about the environment and their health. Concentrates of neem oil are made from the seeds of the neem tree and are referred to as organic as no harmful chemicals or genetically modified organisms (GMOs) were used in their production.

For Instance, in 2021, SBM Company acquired Or Brun from ELEPHANT VERT, increasing its France market presence in soils, fertilizers and natural mulches. Or Brun, a renowned brand in the garden market, aligns with SBM's strategy for organic gardening products. The move builds on SBM's 20-year commitment to the French market with the SOLABIOL brand.

Additionally, the acquisition strengthens SBM's position by incorporating natural solutions into its portfolio, meeting the growing demand for sustainable gardening products. SBM aims to leverage Or Brun's iconic status to cater to evolving consumer preferences and reinforce its market presence in France.

Supply Chain Issues and Restricted Availability

Neem oil production requires neem tree cultivation and processing, which is influenced by some variables including climate, pests and diseases. Neem oil availability may fluctuate as a result, upsetting the supply chain. Moreover, neem oil has become more and more in demand in some sectors, such as cosmetics, healthcare and agriculture. To meet this increasing demand and guarantee the timely and reliable availability of neem oil products, an established and effective supply chain is necessary.

Availability of Substitutes

As neem oil is commonly used in agriculture as a biopesticide and insecticide, comparable pest control properties are also offered by synthetic chemicals and other items that are available on the market. The widespread use of neem oil may be hampered by these alternatives as they may be more widely accessible, more affordable or have a more established market presence.

In addition, performance is also offered by some substitutes in the automobile sector, where neem oil is used in coatings and lubricants. Coatings, synthetic lubricants and other bio-based oils are substitutes for neem oil. The use of neem oil in the automobile industry may be constrained by the cost and availability of these alternatives.

Segment Analysis

The global neem oil and concentrates market is segmented based on product, type, packaging, application and region.

Rising Use of Oxalic Acid in the Expansion of Pharmaceutical Industry

The leaf extract segment is among the growing regions in the global neem oil and concentrates market covering more than 1/3rd of the market. The rising demand for neem leaf extract is a major driver of the neem oil and concentrates market's growth. A crucial component in the creation of neem-based goods, such as neem oil, is neem leaf extract. Bioactive substances with strong insecticidal and pesticidal effects, such as azadirachtin, are abundant in neem tree leaves.

Neem leaf extract is increasingly being used in natural fertilizers and insecticide formulations as the world's agricultural community adopts more sustainable and organic farming methods. The has helped to boost the market for neem oil and concentrates overall as well as improved the efficiency of pest control in agriculture.

Geographical Penetration

Growing Adoption of Organic Farming Techniques in Asia-Pacific

Asia-Pacific has been a dominant force in the global neem oil and concentrates market and the demand for neem-based products is greatly increased by the Asia-Pacific's strong emphasis on agriculture and the growing adoption of organic and sustainable farming techniques. The region plays an essential part in the expansion of the global neem oil and concentrates market.

Additionally, the farmers in Asia-Pacific are turning to neem oil as a natural and sustainable option for pest control and soil enrichment as knowledge of environmental issues and the detrimental effects of artificial pesticides increases. There is a continuous supply of raw materials since neem trees are widely available in nations like India, which is a significant supplier of neem oil.

The Indian subcontinent is home to the neem tree, which is widely cultivated there. Asian nations can play a significant role in the neem oil market thanks to their ideal geographic location, which also offers a reliable supply of neem-based agricultural solutions. Neem oil production in Asia-Pacific is more competitive in the market since it is cost-effective.

For Instance, in 2020, Manorama Industries Limited launched a brand-new factory in Birkoni, Chhattisgarh. to fulfill the massive surge in demand for CBE and specially-produced fats. The helped companies create and produce new products and strengthen their domestic and international supply chains. Commercial manufacturing was initiated at Birkoni, the company's new factory. With this success, the company will reach its annual output peak.

COVID-19 Impact Analysis

The global market for neem oil and concentrates has been impacted by the COVID-19 pandemic in some techniques. Production and distribution have been impacted by supply chain interruptions brought on by limitations, lockdowns and a shortage of labor. Numerous producers of neem oil encountered difficulties in continuing their usual business operations, which might have resulted in shortages and supply delays.

Furthermore, transportation limitations and logistical problems affected the timely delivery of neem oil to different markets globally. The pandemic has also brought attention to the value of organic and sustainable products, as well as the need to use natural pest management and agricultural solutions.

The sustainable and biopesticidal properties of neem oil witnessed a surge in demand as farmers and consumers searched for alternatives to chemical-based treatments. Long-term development in the neem oil market may be fueled by this increase in consumer demand for organic and eco-friendly products. The economic effects of the pandemic have also had an impact on consumer spending and behavior.

The agriculture industry, which includes the neem oil business, has proven resilient despite the uncertainty and difficulties that accompanied the pandemic's early stages. In many parts of the world, consumers are becoming more and more interested in natural goods and as economies recover and adjust to the ""new normal,"" the market for neem oil and concentrates may continue to gain from these factors.

Russia-Ukraine War Impact Analysis

The production of agricultural inputs such as neem oil and other agricultural businesses can be impacted by geopolitical tensions and wars. The prices of commodities are subject to fluctuations influenced by various factors, such as disruptions in the supply chain, trade restrictions and uncertainties in affected countries. Supply chain disruptions can impact the availability and pricing of neem oil, a widely utilized substance in agriculture and pest management.

Moreover, the broader economic repercussions of conflicts can influence consumer behavior, potentially affecting demand in certain industries. Market dynamics may change if the war creates economic uncertainty, which might affect enterprises' and consumers' purchasing power. Furthermore, shifts in governmental laws and regulations may be prompted by geopolitical events, which might affect global trade and commerce and the neem oil market.

The market for neem oil and concentrates will be specifically impacted by many variables, such as the length and intensity of the conflict, the geographic extent of the disruptions and the reactions of governments and businesses to the changing circumstances. The issue's dynamic character must constantly be taken into consideration. For the most precise and current information, it is advised to refer to recent publications from market analysts and business experts.

By Product
• Anhydrous
• Dihydrate
• Aqueous Solution

By Type
• Leaf Extract
• Fruit and Seed Extract
• Bark Extract

By Packaging
• Bottles
• Drums
• Cans
• Others

By Application
• Agriculture and Farming
• Pharmaceuticals and Nutraceuticals
• Cosmetics and Personal Care
• Automotive
• Food and Beverages
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On June 08, 2022, SBM Life Science is now part of the Great Place to Work network for 2022, certified in every qualifying European country, including France, Germany, UK, Italy, Switzerland and Spain. The achievement, a first in Europe, reflects the company's commitment to exemplary workplaces. The international certification follows SBM's recognition in U.S. last year, showcasing its dedication to positive work environments globally.

Competitive Landscape

The major global players in the market include SUNSHIV BOTANICS, ConnOils LLC, VedaOils, Ozone Biotech, Woodstream Corporation, BONIDE Products LLC, Greenway Biotech, Natria, Manorama Industries Limited and Aromantic Natural Skin Care.

Why Purchase the Report?
• To visualize the global neem oil and concentrates market segmentation based on product, type, packaging, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of neem oil and concentrates market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global neem oil and concentrates market report would provide approximately 69 tables, 70 figures and 203 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies