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Neem Extracts Market Analysis

ID: MRFR//0561-CR | 180 Pages | Author: Sakshi Gupta| October 2023

Rising Demand for Neem Extracts Driven by Growing Adoption of Organic Farming A pivotal factor propelling the growth of the neem extract market is the increasing adoption of organic farming. This surge can be attributed to the profound advantages associated with organic farming, particularly in reducing potential hazards to both humans and animals by minimizing residues in agricultural products. Furthermore, organic farming is acknowledged for its contribution to diminishing the overall cost of agricultural production while concurrently enhancing soil health. Neem extracts play a crucial role in organic farming due to their inherent properties, such as being spermicidal and bactericidal. The global shift towards organic farming is substantiated by numerous countries that have embraced this agricultural approach, contributing significantly to the overall share of organic farming on a global scale. According to data from the Government of Tamil Nadu, Australia led the way in organic farming with an extensive land coverage of 35.7 million hectares (mha) in 2019, followed by Argentina (3.7 mha) and Spain (2.4 mha). Notably, India demonstrated a remarkable increase in organic farming, claiming the top position with an expansion of 0.36 mha, followed by Kazakhstan with an increase of 0.1 mha in the year 2019. The share chart below illustrates the leading contributors to organic farming in various regions, underscoring the substantial demand for neem extract on a global scale. [Insert Share Chart] The escalating demand for neem extract is intricately linked to the higher prevalence of organic farming practices worldwide. The discernible increase in organic production and the expansion of organic farmland across the globe serve as key drivers for the burgeoning neem extract market. The benefits of organic farming, including reduced environmental impact, improved soil fertility, and the absence of harmful synthetic chemicals, align with the growing consumer preference for sustainable and eco-friendly agricultural practices. Neem extracts, with their versatile properties, align seamlessly with the principles of organic farming, contributing to the global movement towards healthier and more sustainable agricultural methods. In conclusion, the symbiotic relationship between organic farming and the demand for neem extract is evident in the ongoing global shift towards environmentally conscious and sustainable agricultural practices. As countries continue to prioritize organic farming initiatives, the neem extract market is poised for sustained growth, providing a natural and effective solution for agricultural challenges while promoting ecological well-being.

Covered Aspects:

Report Attribute/Metric Details
Segment Outlook Type, Application, and Region

Global Neem Extract Market Overview

Neem Extract Market Size was valued at USD 2.01 billion in 2021. The Neem Extract market industry is projected to grow from USD 2.31 billion in 2022 to USD 9.410 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.09% during the trajectory period (2022 - 2032). The key factors associated with the growth of the Neem Extract Market are surging demand for neem extracts to treat various health ailments along with the increasing acceptance of organic cultivation skyrocketing the demand for neem extract market around the world.

Global Neem Extract Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Neem Extract Market Trends

  • High Demand for Neem Extracts for The Treatment of Multiple Diseases

The demand for neem extract has been increasing owing to the immense benefits of neem extract in treating diseases such as infectious, metabolic, and cancer. In April 2023, Memorial Sloan Kettering Cancer Center (US) announced that, as per its research on neem extract treatment for cancer, neem extract has anticancer activities that assist in inhibiting cancer cell growth. Moreover, neem extracts extracted from all the parts of neem, including leaf, bark, flower, fruit, twig, gum, and seed, have multiple properties, thus, the below table represents the uses of different parts of neem as an extract in several diseases. Neem extracts derived from leaves are beneficial in leprosy, eye problems, epistaxis, intestinal worms, anorexia, biliousness, are skin ulcers. The bark extracts of neem work as an analgesic, and cures fever. Flower extracts of neem help in bile suppression, and the elimination of intestinal worms, and phlegm. The fruit extracts of neem are useful in piles, intestinal worms, urinary disorders, epistaxis, phlegm, eye problems, diabetes, wounds, and leprosy. Extracts derived from twigs prevent Cough, Asthma, Piles, Phantom, Tumors, Intestinal Worms, Spermatorrhoea, Obstinate Urinary Disorder, and Diabetes. Neem seed extracts are beneficial in the treatment of leprosy and intestinal worms. Apart from that, the neem extracts are also beneficial in scabies, wounds, ulcers, skin diseases leprosy, and intestinal worms. The multiple treatment properties of neem extracts are represented below:



Medicinal Use



Leprosy, Eye Problem, Epistaxis, Intestinal Worms, Anorexia, Biliousness, Skin Ulcers



Analgesic, Alternative, and Curative of Fever



Bile Suppression, Elimination of Intestinal Worms, and Phlegm



Piles, Intestinal Worms, Urinary Disorder, Epistaxis, Phlegm, Eye Problem, Diabetes, Wounds, and Leprosy



Cough, Asthma, Piles, Phantom, Tumor, Intestinal Worms, Spermatorrhoea, Obstinate Urinary Disorder, and Diabetes



Scabies, Wounds, Ulcers, Skin Diseases Leprosy and Intestinal Worms



Leprosy and Intestinal Worms

Besides that, neem extract is also one of the environment-friendly choices as it is one of the sustainable sources of plant-based ingredients. Apart from that, the most imperative factor supporting the growth of the market is the increasing adoption of organic cultivation. This is mainly owing to the increasing organic farming trend associated with increasing awareness regarding the health impacts associated with conventional food products. In addition, organic cultivation reduces the total cost of agricultural production and boosts soil health. Moreover, the neem extracts also possess various properties required for farming, including bactericidal, and spermicidal.

Moreover, various nations are adopting organic farming techniques across the globe.  According to the report of the Government of Tamil Nadu (India), associated with organic farming Australia has 35.7 million hectares, Argentina has 3.7 million hectares, along with 2.4 million hectares in Spain in 2019. Apart from that, various nations are also reporting a continuous surge in organic farming, and among them, India was at a leading position with a surge in organic farming up to 0.36 million hectares, and Kazakistan at second position with 0.1 million hectares in 2019.

Neem Extract Market Segment Insights

Neem Extract Type Insights

The Neem Extract Market segmentation is based on the type, such as leaf extracts, fruit & seed extracts, and bark extracts. The fruit & seed extracts segment accounted for the leading market share in the Neem Extract Market in 2022 approximately 38.3%. Neem is a well-known medicinal plant with a long history of usage in several diseases in the traditional medicine system of India. Each part of the neem has therapeutic benefits, such as leaves bark extracts, fruit, roots, and seeds. Neem extracts are used in preparations associated with anthelminthic, contraceptive, sedative, and antibacterial treatment. In addition, the chewing of neem bark enhances oral hygiene. Moreover, stearic, oleic, linoleic, and palmitic acids are enriched in neem seed oil. According to animal research, neem leaf extract is also one of the novel ingredients for the treatment of diabetes as it helps in reviving the cells that produce insulin. Moreover, neem extract is also used fully in the treatment of malaria, skin problems, stomach & intestinal ulcers, and fever. The neem flower extracts are used to cure intestinal worms, regulate phlegm, and reduce bile. The fruit extracts of neem are used to treat various urinary tract diseases, eye ailments, bloody nose, phlegm, intestinal worms, hemorrhoids, wounds, leprosy, along diabetes.

Figure 2: Neem Extract Market, by Type, 2021 & 2032 (USD Billion)

Neem Extract Market, by Type, 2021 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Neem Extract Application Insights

The Neem Extract Market is also analyzed based on application, pharmaceuticals & nutraceuticals, personal care, agriculture & farming, food & beverages, and others. Among these segments, Pharmaceuticals & nutraceuticals, and personal care held more than 50% of the market share associated with the neem extract market in 2022. Neem-based products have a major role in the treatment and prevention of various diseases by increasing antioxidant activity and restricting the growth of bacteria and harmful pathogens. It has been used for a long time for the cure and treatment of several ailments. Similarly, the antibacterial and antifungal properties of neem extracts help to heal skin ailments and boost the susceptible system. In addition, the surging demand for naturally sourced products among consumers is anticipated to propel growth during the review period. Moreover, the curative properties of neem extracts along with long-term benefits, are being used in various products such as soaps, shampoos, conditioners, and toothpaste. In addition, neem extracts are enriched with flavonoids and antioxidants, and are widely used in food and beverages.

Furthermore, Neem-derived extracts are also beneficial in several insect repellents, diabetic management, anti-inflammatory supplements, along with cancer treatment. These benefits associated with neem extracts are anticipated to have a positive impact on the market. Besides that, the usage of chemical-based insecticides and pesticides impacted the yield of soil and it also spoils the nutrient value of agriculture products, owing to which the neem extract-based products are gaining more consumer traction these days. In addition, surged demand and application for bio-based fungicides and herbicides in developed and developing countries are anticipated to propel the demand for products during the forecast period.

Neem Extract Regional Market Insights

Based on regions, the Neem Extract Market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific neem extract market accounted for 39.4% in 2022 and is likely to grow with a CAGR of 16.25% during the review period. The increasing demand for neem extracts in the Asia-Pacific region is creating huge growth opportunities for the neem extract market. Many of the Asia-Pacific countries such as India, China, and the Philippines use a huge number of bio-based fertilizers that are made from crop and animal waste. Also, the medicinal benefits of neem are well known in Asia-Pacific, and its awareness is spreading worldwide. Hence, above mentioned factors help to boost the market growth of the Asia-Pacific neem extract market.

Europe is accounted for the second position with a market share of 28.9% in 2022, and the major players associated with the neem extract market are anticipated to observe noticeable growth owing to surging demand for organic pesticides.

North America is anticipated to grow with a CAGR of 14.43% till 2032, owing to surged awareness regarding the application of neem extracts attracting customers owing to the health-beneficial properties in their daily lives.

In addition, the key countries considered for this study include are the U.S, Germany, Canada, France, Italy, the UK, Spain, Japan, India, China, Australia, Brazil, New Zealand, and South Korea.



Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Neem Extract Key Players & Market Competitive Landscape

The neem extract market is projected to observe a noticeable growth, mainly due to the presence of several local, regional, and global. These players are catering to the neem extract processing techniques which are progressing at a rapid pace. The increasing demand for neem extract is further driving the growth of the Neem Extract Market during the forecast period. The key manufacturers have adopted a strategy of obtaining regulatory approval from government agencies for their products and signing contracts and agreements to broaden their reach and reduce operational costs. Apart from that, the players are also focusing on strategic collaborations, and investment in R&D to gain more market share. Mergers and acquisitions strategies are also followed by the companies for the expansion of their product portfolio and to launch a new product. The growth of prominent players associated with the neem extract market is dependent on several factors, including market conditions, industry development, and government support. The major companies in the neem extract market are aiming to develop new products with advanced properties. These are the major strategic growth approaches considered by the major players in the global neem extracts to uphold a major share in the long run.

Key Companies in the Neem Extract market include

  • Neeming Australia (Australia)

  • Gramin India Agri BusiNest (India)

  • PJ Margo Pvt. Ltd (India)

  • Agro Extracts Limited (India)

  • GreeNeem Agri Pvt Ltd (India)

  • Parker Biotech Private Limited (India)

  • Fortune Biotech Ltd (India)

  • EID Parry Ltd (India)

  • Ozone Biotech (India)

  • Trifolio-M GmbH (Germany)

Neem Extract Market Segmentation

Neem Extract Type of Cover Outlook

  • Leaf Extracts

  • Fruit & Seed Extracts

  • Bark Extracts

Neem Extract Application Outlook

  • Pharmaceuticals & Nutraceuticals

  • Personal Care

  • Agriculture & Farming

  • Food & Beverages

  • Others

Neem Extract Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • Rest of Asia-Pacific

  • Rest of the World

    • South America

    • Africa

    • Middle East

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