Neem based pesticides are derived from neem tree seeds, leaves and bark. They are used for controlling several agricultural pests and diseases without harming beneficial insects. Neem based pesticides are effective, non-toxic and have little or no side effects on the environment. They act as natural insecticides, fungicides, and pest repellents. Neem based pesticides find wide application in agriculture to control various pests like insects, mites, nematodes etc. that infect crops. The global Neem based Pesticides Market is estimated to be valued at US$ 2.08 Bn 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.
Market Opportunity: The opportunity to cater diverse crop protection needs will drive the growth of the Neem based Pesticides Market. Neem based pesticides are effective against a wide variety of agricultural pests and diseases affecting different crops like cereals, pulses, vegetables, cotton etc. without harming beneficial insects and the environment. Their ability to control multiple pests simultaneously without developing pest resistance provides an advantageous alternative to chemical pesticides. This multifunctional nature of neem based pesticides expands their usage in diverse crop applications and ensures sustainable pest management, representing a key growth opportunity for market players.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the Neem based pesticides market is moderate. Research and product development requires significant capital investment and regulatory approvals which deter new companies from easily entering this market. However, the market growth offers opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of substitutes. Buyers can switch to other organic/chemical based agricultural products if pricing is not competitive or quality standards are not met.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of Neem seeds and other raw materials operate on economies of scale giving them some control over pricing. However, product differentiation keeps their influence in check.
Threat of new substitutes: The threat of substitutes is high as there are several chemical and organic alternatives to Neem based products used for pest control and plant protection. Switching costs are relatively low for farmers.
Competitive rivalry: The competitive rivalry in the market is high due to presence of many players. Market is increasingly fragmented and players compete based on pricing, innovation and quality.
SWOT Analysis
Strengths: Neem chemicals are biodegradable and non-toxic to humans and animals. Neem products aid in plant growth and have medicinal properties.
Weaknesses: Neem extracts have a bitter taste which most pests and diseases are reluctant to. Products need frequent application due to fast degradation in sunlight.
Opportunities: Growing organic farming trend and need for sustainable agro chemicals present market opportunities. Demand from LDCs and developing nations is rising.
Threats: High dependence on monsoon for raw material supplies affects consistency. Chemical pesticide producers pose competition with their pricing and efficacy.
Key Takeaways
The global Neem based pesticides market is expected to witness high growth over the forecast period of 2023-2030 supported by rising preference for organic and eco-friendly crop protection solutions. The Neem tree and its extracts have biopesticidal, biofungicidal and other medicinal properties that make it a sustainable substitute for toxic synthetic chemicals.
Regional analysis indicates South Asia to dominate the global market over the forecast period. Nations like India, Bangladesh and Sri Lanka have been cultivating Neem for centuries and account for the largest production and consumption base. Other Asian countries as well as regions like North America, Europe and Latin America are also adopting Neem products at an increasing rate due to conducive regulatory environment for organic farming.
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
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