Rising Demand for Bio-Agricultural Products
Increasing R&D development have introduced various applications of neem extracts which can be used for agricultural products. These agricultural products are bio based and environment friendly. The rising disposable income coupled with the agricultural initiatives by government have facilitated the growth of neem extracts market during the forecast period.
High Medicinal Applications
The numerous diseases that can be cured by neem extracts such as indigestion, oral problems, skin problems, eye problems and others is expected to increase the demand for neem extracts. Additionally, the rising usage of neem extracts for personal care products is also expected to boost the neem extracts market across the globe.
Asia Pacific region holds the largest number of neem trees in the world. However, other countries which have relatively low plantation of neem trees. This leads to high import of neem from other countries which increases the price of the neem extracts .Thus, it is expected to hinder the market growth during the forecast period.
The global neem extracts market is observing dynamic growth on account of increasing number of personal care products, thereby driving the demand for neem extracts. Advancement in pharmaceutical industry coupled with the growing R&D activities is projected to drive the neem extracts market across the globe.
The neem extracts is anticipated to exhibit high growth during the forecast period on the account of rising demand for the bio based agricultural products. Additionally, the fertilizer holds the major share for the application segment .This is expected to drive the demand for the neem extract market during the forecast period.
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As per WHO, the global malaria cases have been increased from 212 million cases in 2015 to 219 million cases in 2017. The high application of neem extracts for the treatment of malaria is expected to expand the market growth of the neem extracts during the forecast period.
Neem extracts with its various applications have anticipated to record a CAGR of 18.2% over the forecast period. The neem extracts market is expected to reach a value of USD 2.5 billion at the end of the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Anil Kumar, Ipsheeta Dash