Asia-Pacific Neem Oil and Concentrates Market, By Type (Fruit and Seed Extract, Leaf Extract, and Bark Extract), Application (Agriculture and Farming, Pharmaceuticals and Nutraceuticals, Personal Care, Automotive, Food and Beverages, and Others) - Industry Trends and Forecast to 2030.
Asia-Pacific Neem Oil and Concentrates Market Analysis and Size
Neem oil is a vegetable oil derived from the seeds of the neem tree (Azadirachta indica), which is native to the Indian subcontinent. It has been used for centuries in traditional Indian medicine, agriculture, and skincare. Neem oil contains a variety of biologically active compounds, including azadirachtin, nimbin, and nimbidin, which are responsible for its medicinal and pesticidal properties. It has antifungal, antibacterial, antiviral, and insecticidal properties, making it a popular natural remedy and pesticide.
The Asia-Pacific neem oil and concentrates market is expected to reach USD 1,270,566.81 thousand by 2030 from USD 476,188.67 thousand in 2023, growing with a substantial CAGR of 13.3% in the forecast period of 2023 to 2030.
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015 - 2020)
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Quantitative Units
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Revenue in USD Thousand
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Segments Covered
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Type (Fruit and Seed Extract, Leaf Extract, and Bark Extract), Application (Agriculture and Farming, Pharmaceuticals and Nutraceuticals, Personal Care, Automotive, Food and Beverages, and Others)
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Countries Covered
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Japan, China, India, South Korea, Australia & New Zealand, Philippines, Malaysia, Thailand, Indonesia, Singapore, and Rest of Asia-Pacific
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Market Players Covered
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Murugappa Group, SUNSHIV BOTANICS, ConnOils LLC, VedaOils, Ozone Biotech, SPECTRUM BRANDS, INC., Woodstream Corporation, DYNA-GRO, INC, GreenWay Biotech, MYCSA AG, Manorama Industries Limited., SUN BIONATURALS, and NOW Foods among others
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Market Definition
Neem tree seeds contain neem oil, a naturally occurring insecticide. It is yellow to brown, gives garlic/sulfur smells, and has a bitter taste. It has been used to eradicate illnesses and pests for hundreds of years. Neem oil is still used today in many different products in various forms. These consist of pet shampoos, cosmetics, soaps, and toothpaste. Neem oil may also be used to make biodiesel or biofuels. Neem oil is made up of many ingredients. The most effective insect deterrent and killer is azadirachtin, derived from neem oil. It is known as clarified hydrophobic neem oil when there is any leftover.
Asia-Pacific Neem Oil and Concentrates Market Dynamics
This section deals with understanding the market drivers, advantages, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Growing Demand for Organic Products
The market for neem oil concentrates is seeing increased demand for organic goods. Neem oil derived from the neem tree has been increasingly popular recently. The demand for organic goods, such as neem oil concentrates, has increased as customers grow more concerned about their health and the environment. As customers become more aware of the potential health dangers linked to synthetic chemicals and pesticides, organic products have grown tremendously on the market. Neem oil concentrates are extracted from the seeds of the neem tree and are called organic because they are produced without toxic chemicals or genetically modified organisms (GMOs). This makes neem oil concentrates appealing to those seeking natural and sustainable solutions. Neem oil has insecticidal characteristics and can treat various pests, including insects, mites, and nematodes. Unlike synthetic pesticides, neem oil is non-toxic to humans and beneficial insects, making it an environmentally benign pest control approach.
- Increasing Application of Neem Oil Concentrates in the Agriculture Industry
The Asia-Pacifc neem oil and concentrates market is witnessing an increase in the use of neem oil concentrates in agriculture. Neem oil, derived from the neem tree (Azadirachta indica), has grown in popularity in agriculture due to its wide variety of applications and multiple advantages. Demand for neem oil concentrates increases as agriculture seeks more sustainable and environmentally friendly alternatives. Neem oil has insecticidal characteristics and can treat various crop pests, such as aphids, whiteflies, mites, caterpillars, and beetles. Its active components prevent insect proliferation and development, resulting in less crop loss. Unlike synthetic pesticides, neem oil is deemed safe for humans, beneficial insects, and the environment.
Opportunities
- Potential Applications in Automotive Industry
The increased demand for environmentally friendly products, the automobile sector is continually looking for novel and long-lasting solutions. Natural neem oil has advantages for a variety of automobile applications. The automotive coatings and paints industry can use neem oil as an ingredient. Its antibacterial and insecticidal qualities can aid in defending the outside surfaces of cars from dangerous pathogens and pests. Car manufacturers can add neem oil to coating formulae to boost paint tenacity and longevity, as well as to add protection against environmental variables that could cause the paint to degrade. Because of its outstanding lubricating characteristics, neem oil can be used as a lubricant or as an addition to automobile lubricants. It can reduce friction and wear in various engine components, resulting in improved engine performance and prolonged engine part lifespan. Furthermore, the natural composition of neem oil can help to reduce the environmental impact of lubricant use in automotive industry products.
- New Product Development and Diversification
Neem oil is well-known for its many useful effects, including insecticidal, antibacterial, and antioxidant capabilities. These characteristics make it a flexible element for a variety of applications. Companies can explore new formulations and applications of neem oil by investing in research and development, creating unique products that cater to certain market segments.
Neem oil can be prepared in various concentrations or combined with other natural components to increase its efficiency and adaptability. This can lead to the creation of concentrated neem oil-based products that provide targeted pest control solutions for certain crops or uses. Furthermore, neem oil-based products can be improved to satisfy the specialized needs of industries such as cosmetics, medicines, personal care, and automotive.
Restraints/Challenges
- Availability of Substitutes
While neem oil is commonly used in agriculture as a biopesticide and insecticide, alternative products and synthetic chemicals on the market provide similar pest control qualities. These substitutes may be more readily available, less expensive, or have a more established market presence, posing a challenge to the broad adoption of neem oil. Similarly, some alternatives provide comparable performance in the automotive industry, where neem oil is utilized in lubricants and coatings. Alternatives to neem oil include synthetic lubricants, coatings, and other bio-based oils. The availability and competitiveness of these substitutes may limit neem oil usage in the automotive sector.
- Regulatory Hurdles and Quality Control
Neem oil, obtained from the seeds of the neem tree, has recently received a lot of interest because of its numerous applications in agricultural, healthcare, and personal care goods. However, the neem oil market has substantial challenges in negotiating the complicated regulatory landscape and achieving consistent quality control.
The registration and licensing requirements for neem oil products are one of the most significant regulatory barriers. Manufacturers must get regulatory permissions or certificates in several countries before lawfully advertising and selling neem oil products. The registration process can be time-consuming and expensive and involve extensive documentation and testing procedures. This can result in delays in bringing neem oil products to market and increase the cost of compliance for manufacturers, especially for small and medium-sized enterprises.
- Limited Awareness of Neem Oil and Concentrates
This lack of understanding presents various obstacles for market participants regarding market penetration, product adoption, and overall market growth. One of the major issues confronting the neem oil and concentrate business is a lack of consumer knowledge. Many consumers are unaware of neem oil's benefits, applications, and potential uses outside traditional agricultural applications. This lack of awareness limits the demand for neem oil-based products in various industries, including personal care, medicines, and household cleaning.
- Limited Availability and Supply Chain Challenges
The neem oil and concentrate market has major challenges due to limited availability and supply chain challenges. The cultivation and processing of neem trees, which can be affected by various factors such as climate, pests, and diseases, is required to manufacture neem oil. This can cause changes in neem oil availability and disrupt the supply chain. Furthermore, the demand for neem oil has steadily increased across various industries, including agriculture, cosmetics, and healthcare. Meeting this growing demand requires a well-established and efficient supply chain to ensure neem oil products' timely and consistent availability.
Recent Development
- In 2022, in Birkoni, Chhattisgarh, Manorama Industries Limited opened a brand-new facility to meet the surge in demand for customized custom-made fats and CBE. This aids businesses in developing and manufacturing new items and fortifying their local and global supply networks
Asia-Pacific Neem Oil and Concentrates Market Scope
The Asia-Pacific neem oil and concentrates market is categorized based on type and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Type
- Fruit and Seed Extract
- Leaf Extract
- Bark Extract
On the basis of type, the market is segmented into fruit and seed extract, leaf extract, and bark extract.
Application
- Agriculture and Farming
- Pharmaceuticals and Nutraceuticals
- Personal Care
- Automotive
- Food and Beverages
- Others
On the basis of application, the market is segmented into agriculture and farming, pharmaceuticals and nutraceuticals, personal care, automotive, food and beverages, and others.
Asia-Pacific Neem Oil and Concentrates Market Regional Analysis/Insights
The Asia-Pacific neem oil and concentrates market is segmented on the basis of on type and application.
The countries in the Asia-Pacific neem oil and concentrates market are the Japan, China, India, South Korea, Australia & New Zealand, Philippines, Malaysia, Thailand, Indonesia, Singapore, and rest of Asia-Pacific.
China is dominating the Asia-Pacific neem oil and concentrates market due to growing awareness regarding the properties of the neem oil and concentrates products.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Asia-Pacific Neem Oil and Concentrates Market Share Analysis
The Asia-Pacific neem oil and concentrates market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the market.
Some of the major market players operating in the Asia-Pacific neem oil and concentrates market are Murugappa Group, SUNSHIV BOTANICS, ConnOils LLC, VedaOils, Ozone Biotech, SPECTRUM BRANDS, INC., Woodstream Corporation, DYNA-GRO, INC, GreenWay Biotech, MYCSA AG, Manorama Industries Limited., SUN BIONATURALS, and NOW Foods among others.
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