Neem Extract Market Finds Industry Acceptance for Its Medicinal Properties

Neem extracts, derived from various parts of the neem tree (binomial name Azadirachta indica), can be used as a constituent element for a wide array of products in segments such as agriculture, pharmaceutics, and cosmetics. Numerous medicinal properties of neem, make neem extracts the ideal substitute for a variety of chemicals that have direct cosmetic or medicinal uses in the industry. Customers greatly prefer organic products, as compared to chemical infused complexes, in order to ensure safety against the side effects that accompanies those compounds. Therefore, it is seemingly the best option for manufacturers in the market to use neem extracts in their personal care, medicinal, agricultural, and nutrition product profiles.

More recently, adoption of biofertilizers in agricultural applications has emerged as one of the crucial factors for the significantly increasing demand of neem extracts in the agricultural industry. Added to the protection against parasitic microbes for the cash crops, neem-infused bio fertilizers also help maintain the soil quality and limit hazardous effects of chemical pesticides. They are definitely the better alternative to carcinogenic compounds that capture most of the insecticides or pesticides segment. Its eco-friendly properties line it up among the hottest industrial trends over the current decade.

Neem oil extraction process

Manufacturers explore business opportunities in neem extract market with sufficient knowledge on oil extraction process. The several industrial extraction processes used for deriving neem oil from the seeds include mechanical pressing, supercritical fluid extraction, and solvent extraction. Mechanical presses are more common to low- to medium scale extraction, or in applications where concentration of extract is not a priority. Supercritical fluids, on the other hand are used for reducing high-purity concentrates from the seeds. Use of solvents, such as ether, alcohol, and hydrocarbons, is the most prevalent in the industry, in terms of commercial feasibility for large scale production.

However, the choice of process specifically depends upon the nature of chemical compound to be extracted. This is primarily because all of these processes, yield dissimilar compositions of oil. The purpose and usage of the resultant compound is generally determined prior to the selection of extraction technique. Regardless to the adopted technique, there is no rocket-science behind any of it. No special skills or high-end technology is involved, till date, in the industry. This is what makes a substantial capital investment enough, to venture out into the neem oil extraction business.

Commercial application segments in neem extract market

Agriculture remains the primary area of commercial application for neem oil in current global scenario. It is majorly incorporated into other products to be used as a fungicide, pesticide, and insecticide in both agricultural and non-agricultural processes. The proportion of ppm azadirachtin in neem oil is varied to achieve various concentrations, as required for different purposes. Urea, a neem coated chemical fertilizer, is one example of the agricultural applications of neem extract market offerings. In cosmetic industry, it is used as a raw material for development of body, skin, dental, and hair care products. Neem is an essential ingredient in most of ayurvedic cosmetics and herbal medicines and has led to strong global growth of relevant industry. As per industry inputs, personal care products follow the lead, being the second fastest growing segment in terms of demand by the end of 2022.

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Business plan for new entrants in neem extract market

Business vendors involve in development of extraction techniques, improving the quality of derived concentrates, stabilize them for extended shelf storage, as well as deliver finalized biochemical products.

An effective tool to gain foothold in neem extraction market is to devise strong business strategies. The selection of neem oil extraction technique depends upon the type of neem oil manufacturer needs to sell. In addition, it also provides them insights on selecting appropriate plant machinery and hire eligible professionals. Key players need to gain a traction of latest strategical activities that shall hugely affect overall growth of the industry. Corporate profiling for comparative analysis of profit prospects remain key to new entrants. It is essential for them to realize possible gaps between consumer expectation and platform deliveries to define their nodes of entry. This should derive specific attention towards regional demands, through intensive study of the behavior patterns of its consumers.  

Regional avenues and regulations

In terms of geographical capture, Asia-Pacific definitely leads the neem extract market in terms of manufacturing volumes. Most of the manufacturing activities are concentrated as well as sourced from this region. Indian subcontinent plays a key role in both initiating and sustaining the industry’s expansion through using its heritage as a surrogate of corporate advertisement. Product developers in regional markets have to remain aware of their intellectual rights and ensure that they protect the same. Early patents during clinical trials is basic to reserving company’s right to profits. Apparently, lack of awareness added to low knowledge of process know-how among smaller vendors not just restrict their capture, but also render their profits vulnerable to be bagged away by major companies.

A report published on the neem extract market states that the industry would reach $2.04 billion by 2020 and expected to grow at a CAGR of 17.4% from 2016 to 2022. Analysts studying the industry revealed an extensive analysis of current trends, key manufacturers, detailed segmentation, and competitive scenario. 

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