The Growing Market
The global market for neem is booming alongside a growing interest in natural and organic products around the world. The neem market  is expected to grow from $653 million in 2015 to $1.8 billion in 2022, at a compound annual growth rate (CAGR) of 16.3%. The majority of the neem extract market is currently based in the Asia-Pacific, with significant demand now coming from the United States, Spain and Italy. The major factors driving the global neem market are the crop’s efficient, safe and cost-effective applications in organic agriculture.
- The global neem extract market is expected to grow from $653.7 million in 2015 to $1.87 billion in 2022 at a CAGR of 16.3%.
- Among all application areas, the agriculture segment accounted for the highest share of 40% in the total revenues of neem extract products.
- Used extensively in the manufacture of high quality and organic cosmetics (due to their efficiency, low toxicity and lack of side effects), this segment accounted for 30% of market revenue in 2013. Major distributors of neem products include Garnier, A.Vogel, Dr. Hauschka and Sundari.
The Strength of Neem as A Commercial Crop
An evergreen tree, neem grows at an average 2.6 feet (80cm) a year and can reach up to 66 feet (20 meters). Able to withstand drought, the tree has a lifespan of 150 to 200 years and offers the following annual yields when reaching full maturity at approximately 7 years old:
- 40 kg Fruit
- 25% of dry seeds – 10 kg
- 50% of dry seeds is kernel – 5 kg
- 50% of kernel is neem oil – 2.5 kg
Neem cake is the by-product produced through stages 2-4 (7.5kg)
Neem Production Today
Commercial cultivation of neem is highly limited around the globe, although coverage has spread in recent years across lowland regions of Africa, South America, Australia and the South Pacific.
The majority of neem in these regions either grow naturally, or else are planted alongside roads and agricultural plots as windbreaks and for ornamental purposes. This makes yields difficult to measure. Conditions vary significantly and no formal or precise collection statistics exist in these areas. Neem’s hardy nature means it can often be grown in less than optimal conditions, with the fruit being collected in an unorganized manner, often with large variations in quality and yields around the world.
The largest known commercial neem plantation in the world today is in the Yunnan Province in China with 400,000 neem trees planted (c. 630 hectares). This is widely considered the production center for neem products in the region.
The highest yield results across the board have come from the handful of commercial plantations in Brazil and China, where the trees are given the best possible care, genetic selection is performed to enhance yields and measurements are conducted regularly.
 P&S Market Research. Global Neem Extract Market Size, Share, Development, Growth and demand Forecast to 2022 (2016)