June 23, 2024

Neem based Pesticides Market driven by growing organic agricultural practices

The global Neem based Pesticides Market is estimated to be valued at US$ 2.08 Billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Neem based pesticides are plant-derived pest control products made from extracts of the neem tree. Neem contains compounds like azadirachtin that have insect antifeedant, insect growth regulation and insecticidal properties. Neem based pesticides are increasingly being used as an alternative to synthetic pesticides in agriculture owing to their safety, biodegradability and suitability for organic farming practices. The rising demand for organic food products has fueled the adoption of organic farming techniques that rely on plant-derived biopesticides like neem formulations. Neem based fungicides and nematicides are also used in non-agricultural applications such as control of fungal growth in household items. The environmental sustainability and relatively low toxicity of neem extracts make them ideal for integrated pest management programs.

Market key trends:

One of the key trends in the neem based pesticides market is the advancement of new formulation technologies. Researchers are exploring methods to enhance the efficacy and stability of neem extracts through nanoencapsulation, nanoparticle synthesis and other novel formulation approaches. Nano-sized neem particles have shown potential for controlled release of active principles and improved penetration in plants. Such innovations are expected to boost the demand for neem biopesticides. Another significant trend is the widening application scope of neem pesticides. Apart from conventional row crops, neem products are gaining popularity for use in fruits, vegetables, plantation crops as well as forestry and urban landscaping. Rapid growth in global organic agricultural land and stringent regulations on chemical pesticides will continue to drive the neem based pesticides market during the forecast period.

Porter’s Analysis
Threat of new entrants: The neem-based pesticides market is moderately difficult to enter as it requires capital intensive production facility and compliance to regulations. However, high growth opportunities attract new smaller players.

Bargaining power of buyers: The presence of many suppliers and formulated product options gives buyers bargaining power to negotiate on price.

Bargaining power of suppliers: Suppliers of neem seeds and other raw materials have moderate bargaining power due to availability of substitutes and suppliers.

Threat of new substitutes: Substitute options for neem-based pesticides include synthetic pesticides. However, neem faces low threat due to its organic and eco-friendly positioning.

Competitive rivalry: The market has presence of small and large players competing on pricing and quality. Rivalry is expected to increase due to projected high growth.

Key Takeaways

The global neem-based pesticides market is expected to witness high growth over the forecast period supported by rising preference for organic farming.

Regional analysis – Asia Pacific dominates the market and is expected to grow the fastest during the forecast period. Countries such as India, China, Indonesia are the key markets in the region due to large area under cultivation and hot and humid climate suitable for neem cultivation.

Key players – Key players operating in the neem-based pesticides market are PJ Margo Private Limited, Agro Extracts Limited,Fortune Biotech Ltd,GreeNeem Agri Private Limited,Manorama Industries Limited,Neem India Products Pvt. Ltd.,Ozone Biotech,Neeming Australia,NOW Foods,Fortune Biotech Ltd.,SUN BIONATURALS (INDIA) PRIVATE LTD.,Banyan Botanicals,Group Velocity LLC.,Parry’s BIO,United Industries Corporation,Murugappa Group,The Velocity Group,Agro Extracts Limited,Certis USA LLC,E.I.D. Parry,PJ Margo Pvt. Ltd.