Report Description

Forecast Period

2025-2029

Market Size (2023)

USD148.25 million

CAGR (2024-2029)

4.15%

Fastest Growing Segment

Leaf Extract

Largest Market

West India

 

Market Overview

India Neem Extracts Market has reached USD 148.25 million by 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.15% through 2029. Indian Ayurvedic companies like Dabur, Patanjali, Baidyanath, and Zandu are not only key players but also pioneers in the neem extracts market. With their deep-rooted knowledge of Ayurveda and expertise in herbal formulations, these companies have successfully harnessed the power of neem extracts for a wide range of products, spanning across healthcare and personal care sectors.

Harnessing the versatile properties of neem extracts, these companies have incorporated them into a myriad of products, including skincare items, toothpastes, and medicinal formulations. Neem extracts, renowned for their antiseptic, antifungal, and anti-inflammatory properties, have become a sought-after ingredient, offering natural and effective solutions for various ailments and skincare needs.

Beyond the realms of healthcare and personal care, neem extracts have found their way into the agricultural sector, revolutionizing organic farming practices. As a natural pesticide and fertilizer, neem extracts provide an eco-friendly alternative to synthetic products, aligning with the growing demand for sustainable and environmentally conscious solutions.

The growth of the neem extracts market in India is driven by multiple factors. Rising disposable incomes and increasing health consciousness among Indian consumers have fueled the demand for natural and organic products. As awareness about the harmful effects of synthetic ingredients spreads, more consumers are turning to neem extracts for their inherent health benefits.

The support and encouragement from the government have also played a pivotal role in the expansion of the neem extracts market. Initiatives promoting Ayurveda and natural products have received significant backing, creating a favorable environment for the growth of the industry. The 'Make in India' initiative, which emphasizes domestic production, has further bolstered the market, fostered local manufacturing capabilities, and drove economic growth.

Moreover, ongoing research and development activities in the field of neem extracts continue to unravel new possibilities and applications. With each new discovery about the potential health benefits of neem, the demand for neem extracts is expected to surge, particularly in the pharmaceutical and nutraceutical sectors.

In conclusion, the India neem extracts market not only exhibits immense potential but also offers lucrative opportunities for businesses. With its rich heritage of Ayurveda, abundance of biodiversity, and a strong focus on sustainability, India is poised to lead the global neem extracts market, catering to the growing demand for natural and organic solutions worldwide.

Key Market Drivers

Rising Demand of Neem Extracts in Agrochemical Applications

The neem tree, scientifically known as Azadirachta indica, is a native species of India that has been revered for its multitude of beneficial properties in traditional Indian agriculture for centuries. Its extracts, derived from various parts of the tree such as leaves, bark, and seeds, have gained recognition for their remarkable pest repellent, insecticidal, and fungicidal properties. This makes neem extracts an exceptional natural alternative to synthetic agrochemicals commonly used in farming practices.

Notably, the use of neem extracts in agriculture extends beyond their pest control capabilities. They also contribute to enhancing soil fertility and preserving the delicate balance of beneficial microorganisms in the soil. Unlike synthetic agrochemicals, neem-based formulations have minimal detrimental effects on the environment and do not harm the beneficial organisms that play a crucial role in maintaining soil health. The growing awareness of the harmful effects associated with the use of synthetic pesticides and fertilizers has led to a shift towards more sustainable farming practices. Neem-based agrochemicals, with their eco-friendly and non-toxic attributes, have gained significant popularity among farmers in India. This transition towards sustainable practices not only benefits the environment but also ensures the production of healthier and safer food.

Furthermore, the increasing global demand for organically produced crops presents a lucrative opportunity for Indian farmers to tap into international markets. By using neem-based agrochemicals, farmers can comply with the stringent quality standards required for organic certification, thus enabling them to access these premium markets and enhance their export potential.

The rising demand for neem extracts in agrochemical applications has stimulated increased domestic production, consequently contributing to the growth of the rural economy. This surge in production has not only generated employment opportunities but has also provided a boost to the overall socioeconomic development of rural communities.

In conclusion, the escalating demand for neem extracts in agrochemical applications serves as a significant driving force behind the growth of India's neem extracts market. As sustainable farming practices continue to gain wider adoption, this trend is expected to persist, promising a bright and prosperous future for the neem extracts industry.

Growing Demand for Organic Products

Neem, a tree indigenous to India, has been recognized for its medicinal properties for centuries. With its antifungal, antibacterial, and anti-inflammatory properties, neem extracts have found extensive use in various sectors, contributing significantly to the organic market.

Neem extracts are widely used in organic personal care products, including soaps, shampoos, and skincare products. As consumers increasingly opt for chemical-free, natural products, the demand for neem-based personal care products is growing. These products harness the power of neem to provide gentle yet effective cleansing and nourishment to the skin and hair.

In addition to personal care, neem extracts are a popular choice in organic farming, acting as natural pesticides and fertilizers. They not only enhance soil fertility but also effectively control pests without harming beneficial insects or the environment. Farmers are embracing neem-based solutions to promote sustainable agriculture practices and reduce their reliance on harmful chemicals.

Moreover, neem is making its way into the organic food and beverage industry. Neem tea, for instance, is gaining popularity among health-conscious consumers due to its numerous health benefits. It is known to support immune health, aid digestion, and promote overall well-being.

To cater to the growing demand, businesses are innovating and expanding their range of neem-based organic products. This has resulted in a wider variety of products in the market, from personal care items to agricultural products. Entrepreneurs and entrepreneurs are exploring the versatility of neem to develop innovative and sustainable solutions for various industries.

In conclusion, the growing demand for organic products is playing a significant role in driving India's neem extracts market. As consumers continue to embrace organic products, recognizing their benefits for personal care, agriculture, and overall well-being, the market for neem extracts is poised for further growth. The versatile nature of neem and its proven efficacy make it a valuable ingredient in the organic industry, contributing to a healthier and more sustainable future.


Download Free Sample Report

Key Market Challenges

Fluctuations in Availability and Accessibility

Neem trees, scientifically known as Azadirachta indica, are native to India and have played a significant role in Indian culture and economy for centuries. These trees have been highly regarded for their various beneficial properties and have been used in traditional medicine, agriculture, and beauty products.

However, the availability of neem can be influenced by several factors, including seasonal changes, climatic conditions, and geographical distribution. As a result, the supply of neem extracts can be subject to fluctuations, which directly impacts the stability of the market. This variability in availability can pose challenges for manufacturers and consumers alike.

In addition to availability, accessibility is another key consideration. While neem trees are widely distributed across India, they are more concentrated in certain regions. This concentration can create logistical challenges in collecting and transporting neem from these areas, which can ultimately affect the overall accessibility of neem extracts.

The changes in supply and accessibility of neem extracts can have a direct impact on price volatility. During periods of low availability, the prices of neem-based products may rise, potentially making them less affordable for consumers. This can pose affordability challenges for those who rely on neem-based products for their various benefits.

Moreover, the inconsistent availability and accessibility of neem extracts can disrupt the entire supply chain. Manufacturers may face difficulties in consistently sourcing neem extracts, which can lead to unreliable product supply. This, in turn, can impact customer trust and brand reputation, as consumers may seek alternative products that are more readily available.

Furthermore, the quality of neem extracts can be compromised during periods of low availability. There may be a temptation to compromise on quality to meet the demand, which can negatively impact the efficacy of the end products. This further highlights the importance of ensuring a stable supply of high-quality neem extracts.

In conclusion, the availability, accessibility, and quality of neem extracts can pose various challenges for the neem industry. Addressing these challenges requires a comprehensive understanding of the factors influencing neem availability, effective supply chain management, and a commitment to maintaining product quality. By doing so, the neem industry can overcome these challenges and continue to provide valuable neem-based products to consumers.

Key Market Trends

Expansion in Personal Care and Cosmetics

Neem extracts have gained recognition for their exceptional antifungal, antibacterial, and anti-inflammatory properties, establishing them as a remarkable ingredient in skincare and haircare products. The versatility of neem extends beyond traditional soaps and shampoos, encompassing creams, lotions, and face masks, as the personal care and cosmetics industry embraces the expanding use of neem.

With a growing awareness among consumers regarding the ingredients present in their personal care products, there is an increasing demand for natural and organic alternatives. Neem, with its abundant health benefits and natural origin, aligns seamlessly with this prevailing trend. Not only does neem provide a multitude of advantages for the skin and hair, but it also resonates with the rising desire for eco-friendly and sustainable options.

Consequently, the upward trajectory of neem use in the personal care and cosmetics sector is a significant trend that propels the neem extracts market in India. As the demand for natural and organic products continues to surge, this trend shows no signs of abating, promising a bright and prosperous future for the market. The remarkable potential of neem in catering to the evolving preferences of consumers ensures its continued growth and relevance in the industry.

Segmental Insights

Type Insights

Based on the category of type, the leaf extract segment emerged as the dominant player in the Indian market for neem extracts in 2023. One of the main reasons for the popularity of neem leaves is the wide range of health benefits they offer. Not only are neem leaves rich in nutrients and antioxidants, but they are also known for their medicinal properties. Additionally, compared to neem seeds and bark, extracting neem leaf extract is relatively easier and more readily available. This has contributed to the increasing usage of neem leaf extract in farming, particularly for insect pest control.

As a result, the demand for seed extract is expected to drive the growth of the India Neem Extracts Market during the forecast period. The combination of these factors makes neem extracts a valuable and versatile resource with numerous applications across various industries.

Application Insights

The agriculture & farming segment is projected to experience rapid growth during the forecast period. The growth of the India Neem Extracts Market is being driven by the increasing prevalence of soil degradation and growing environmental concerns. In response, farmers are embracing sustainable agriculture practices, which involve the utilization of neem-based fertilizers and pesticides. This shift towards sustainable farming methods not only addresses the environmental challenges but also contributes to the overall growth and development of the neem extracts market in India during the forecast period.


Download Free Sample Report

Regional Insights

  • West India emerged as the dominant player in the India Neem Extracts Market in 2023, holding the largest market share in terms of value. The western region of India, encompassing states like Gujarat, Maharashtra, and Rajasthan, is renowned for its vast expanse of neem trees. These regions benefit from favorable climatic conditions and diverse soil types, which create the perfect environment for the flourishing growth of neem trees.
  • With a robust agricultural sector, the western region of India holds a prominent position in the neem extracts market. Neem extracts are widely utilized in agriculture as bio-based fertilizers and pesticides, contributing to sustainable farming practices. The thriving agricultural sector in this region not only ensures a steady supply of neem extracts but also drives the demand for these eco-friendly solutions.
  • The abundance of neem trees in West India, combined with the region's thriving agricultural sector, forms a symbiotic relationship that fuels the growth of the neem extracts market. As farmers and agricultural practitioners embrace the benefits of neem extracts, the demand for these natural alternatives continues to rise, fostering a sustainable and environmentally conscious approach to farming in the western region of India.

Recent Developments

  • In February 2021, Vestige Marketing Pvt. Ltd., one of India’s leading home-grown direct selling firms, made headlines by re-launching one of its recognized home hygiene products under the sub-brand Hyvest. This innovative and revamped version, known as Hyvest Ultra Shield, is fortified with the powerful potential of Neem. With its remarkable anti-viral, anti-bacterial, and anti-fungal characteristics, Hyvest Ultra Shield is a water-based multipurpose disinfectant spray that provides long-lasting protection for up to 15 days. This product is truly a game-changer in the field of home hygiene, ensuring a clean and safe environment for families across the country.
  • In December 2019, a significant milestone was achieved by Patanjali Ayurved, the renowned Ayurvedic brand founded by Yoga guru Baba Ramdev. Patanjali made its earliest and most noteworthy acquisition to date by taking over Ruchi Soya, the well-known soya food brand. Through an insolvency process, Patanjali paid a staggering amount of USD 526.35 million to acquire Ruchi Soya, including its edible oil plants and popular soybean oil brands like Mahakosh and Ruchi Gold. This strategic move not only solidifies Patanjali's position in the edible oil market but also paves the way for further growth and expansion in the food industry.
  • In October 2019, Nimbarka Industries Pvt. Ltd., a promising startup based in Mohali, introduced an exciting and innovative product line called 'Nimbarka'. This product line is entirely based on the fascinating characteristics of neem, a plant known for its numerous health benefits. Nimbarka launched six initial products in the North Indian markets, including the Neem Deep Purifying Gel, Neem & Milk Face Wash, Neem Face Scrub, Neem Shampoo, Neem Body Lotion, and Neem Hand Wash. These products not only offer effective personal and beauty care solutions but also harness the power of neem to promote overall well-being. With its sights set on the international market, Nimbarka is exploring avenues for expansion through e-commerce channels, allowing people from around the world to experience the wonders of neem-based products.

Key Market Players

  • Dabur India Ltd.
  • Patanjali Ayurved Limited
  • Emami Limited
  • GreeNeem Agri Private Limited
  • P.J. Margo Pvt. Ltd.

By Type

 By Application

By Region

  • Leaf Extract
  • Fruit & Seed Extract
  • Bark Extract
  • Pharmaceuticals
  • Nutraceuticals
  • Personal Care
  • Agriculture & Farming
  • Food & Beverages
  • Others
  • North India
  • East India
  • West India
  • South India
Report Scope:

In this report, the India Neem Extracts Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Neem Extracts Market, By Type:

o   Leaf Extract

o   Fruit & Seed Extract

o   Bark Extract

  • India Neem Extracts Market, By Application:

o   Pharmaceuticals

o   Nutraceuticals

o   Personal Care

o   Agriculture & Farming

o   Food & Beverages

o   Others

  • India Neem Extracts Market, By Region:

o   North India

o   East India

o   West India

o   South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Neem Extracts Market.

Available Customizations:

India Neem Extracts Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Neem Extracts Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]               

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Applications

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    India Neem Extracts Market Outlook

4.1.  Market Size & Forecast

4.1.1. By Value

4.2.  Market Share & Forecast

4.2.1. By Type (Leaf Extract, Fruit & Seed Extract, Bark Extract)

4.2.2. By Application (Pharmaceuticals, Nutraceuticals, Personal Care, Agriculture & Farming, Food & Beverages, Others)

4.2.3. By Region

4.2.4. By Company (2023)

4.3.  Market Map

4.3.1. By Type

4.3.2. By Application

4.3.3. By Region

5.    North India Neem Extracts Market Outlook

5.1.  Market Size & Forecast          

5.1.1. By Value

5.2.  Market Share & Forecast

5.2.1. By Type

5.2.2. By Application

5.2.3. By State (Top 3 States)

6.    South India Neem Extracts Market Outlook

6.1.  Market Size & Forecast          

6.1.1. By Value

6.2.  Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By State (Top 3 States)

7.    West India Neem Extracts Market Outlook

7.1.  Market Size & Forecast          

7.1.1. By Value

7.2.  Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By State (Top 3 States)

8.    East India Neem Extracts Market Outlook

8.1.  Market Size & Forecast          

8.1.1. By Value

8.2.  Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By State (Top 3 States)

9.    Market Dynamics

9.1.  Drivers

9.2.  Challenges

10.  Market Trends & Developments

10.1.              Recent Developments

10.2.              Product Launches

10.3.              Mergers & Acquisitions

11.  Policy & Regulatory Landscape

12.  India Economic Profile

13.  Competitive Landscape

13.1.          Dabur India Ltd.

13.1.1.  Business Overview

13.1.2.  Company Snapshot

13.1.3.  Products & Services

13.1.4.  Current Capacity Analysis

13.1.5.  Financials (In case of listed)

13.1.6.  Recent Developments

13.1.7.  SWOT Analysis

13.2.          Patanjali Ayurved Limited

13.3.          Emami Limited

13.4.          GreeNeem Agri Private Limited

13.5.          P.J. Margo Pvt. Ltd.

14.  Strategic Recommendations

15.  About us & Disclaimer

Figures and Tables

Frequently asked questions

down-arrow

The market size of the India Neem Extracts Market is estimated to be USD148.25 million in 2023.

down-arrow

The leaf extract segment demonstrated significant dominance in 2023. Neem leaves are widely available and more cost-effective than other parts of the neem tree, like the bark and seeds, for extracting neem.

down-arrow

West India dominated the market with a revenue share in 2023. This is due to its abundant neem resources, strong agricultural sector, leading Ayurvedic companies, and high demand in personal care and cosmetics.

down-arrow

Growing demand of neem extracts in agrochemical application and growing demand of organic products are the major drivers for the India Neem Extracts Market.

profile

Sakshi Bajaal

Business Consultant
Press Release

India Neem Extracts Market to Grow with a CAGR of 4.15% through 2029

Dec, 2023

Growth in research and development activities is expected to drive the India Neem Extracts Market growth in the forecast period, 2025-2029.