The demand for personal care products has been soaring these days all across the globe. As people are now extremely conscious regarding their physical appearance, they are increasingly investing in personal care products that can aid in enhancing their aesthetic appearance. Moreover, the increased disposable income of people, thanks to the strong economic growth, in various countries is also resulting in the increasing demand for personal care products. These day the demand for herbal personal care products has been rising as well, since people are getting increasingly aware regarding the side-effects of cosmetics.
Several skin and hair care products contain chemicals that can prove harmful for the human body. Owing to this, the demand for neem-based products has increased substantially over the past few years, thereby resulting in the growth of the global neem extract market. Other than this, the preference for Ayurvedic medicines has also been rising in various parts of the world. For example, while the popularity and easy availability of allopathic medicines increased considerably in India a few years back, now the focus is again shifting towards Ayurveda, which is further resulting in the increasing demand for neem extract.
Neem contains various chemicals which are capable of reducing blood sugar levels, preventing pregnancy, healing ulcers in the digestive tract, killing bacteria, and preventing the formation of plaque in the mouth. Owing to such advantages, the plant is widely utilized as a natural and home remedy for taking care of several ailments. In addition to all this, the plant also has antioxidant properties and can help in protecting the skin from pollution, harmful ultraviolet radiation, and other environmental factors. The presence of fatty acid and vitamins in neem also helps in maintaining and improving the elasticity of skin and in reducing fine lines and wrinkles.
It is because of all these factors that the global neem extract
market is predicted to generate a revenue of $1,868.2 million by 2022, progressing at a 16.3% CAGR during the forecast period (2016–2022). On the basis of segment, the market is categorized into bark extract, seed extract, and leaf extract, among which, the bark extract division is projected to witness the fastest growth during the forecast period. This can be ascribed to the rising requirement for bark extract from the Asia-Pacific (APAC) region.
In terms of application, the neem extract market is divided into animal products, agriculture, and health & personal care, out of which, the animal products division is expected to account for the highest CAGR during the forecast period. This is due to the rising requirement for herbal animal food from countries including Brazil, the U.S., and France. Geographically, the APAC region dominated the market in the past, according to a report by P&S Intelligence. This was primarily because of the presence of the major Ayurvedic companies in the region that consume the product on a large-scale.
In conclusion, the demand for neem extract is growing due to the increasing demand for herbal personal care items and focus towards Ayurvedic medicines.