Neem Oil Market Size & Outlook, 2025-2033

Neem Oil Market Overview

The global neem oil market size was valued at USD 1.37 billion in 2024 and is projected to reach from USD 1.49 billion in 2025 to USD 5.47 billion by 2033, growing at a CAGR of 9.1% during the forecast period (2025-2033). The neem oil market is driven by rising applications in key industries such as agriculture and cosmetics. The current trend of bio-based products in agriculture, as well as cosmetics, potentiates the demand for neem oil.

Key Market Indicators

• Asia Pacific is the largest regional market in 2024, holding a 37.59% revenue share.
• Based on source Seed segment dominated the market in 2024 with a 63.29% revenue share.
• Based on end-use Agriculture segment led the market in 2024 with a 32.63% revenue share.

Market Size & Forecast

• 2024 Market Size : USD 1.37 Billion
• 2033 Projected Market Size : USD 5.47 Billion
• CAGR (2025–2033) : 9.1%
• Dominating Region : Asia Pacific
• Fastest-Growing Region : North America

People’s rising approach for bio-based skin care products, updates on guidelines for the development of pesticides with toxicity limitations for humans as well as the environment, eventually influences manufacturers to prefer natural ingredients such as neem oil. Furthermore, the government’s high budget allocation for agriculture and allied products industry signifies the demand for associated products. In addition to this, rising skin problems demand a solution with fewer side effects, where neem oil acts as a key anti-inflammatory and wound healing agent. These diverse applications propel the demand for neem oil.

Neem oil is extracted from the seeds or leaves, or bark of the neem tree (Azadirachta indica). It is yellowish brown in colour and is utilised mainly for pest control. The oil is applicable across multiple industries with multiple roles to play. Being a natural component, neem oil is a preferred option in industries such as agriculture for pest control and a skin care agent in cosmetics. India holds the major share for neem oil, with the availability of sources of neem, the presence of a majority of the manufacturing companies, and the rising demand for pesticides in agriculture.

Market Trend

Shift towards Bio-based Pesticides

Bio-based pesticides are the ones that are less harmful to human health as well as the environment. Additionally, there are fewer chances of causing toxicity to fruits and crops as compared to synthetic products. So, the government bodies are also promoting the manufacturing as well as use of biopesticides.

• For example, the United States Department of Agriculture and the United States Environmental Protection Agency promote awareness amongst society to prefer biopesticides
• In addition to this, the National Institute of Food and Agriculture (NIFA) supports research in bio-based pest management

The awareness programs, research and development highlight preference to bio-based pesticides over synthetic ones. As neem oil is also a bio-based pesticide, this ongoing trend directs its demand in the agricultural sector.

Preferential Approach for Bio-based Skin Care

Rising skin problems due to unhygienic conditions, environmental factors, and additionally, the side effects of synthetic skin care agents are redirecting manufacturers’ as well as people’s approach towards natural skin care products. Neem oil is one of the major components for acne treatment that provides a soothing and hydrating effect to the skin.

• For example, Lignopure GmbH raised USD 2.57 million for the utilisation of natural components in cosmetics

Such updates on the regulatory landscape and investments by manufacturers in natural skin care products direct the market flow towards bio-based skin care products, and hence for neem oil as an effective component in skin and hair care.

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Market Drivers

Strong Growth of Cosmetics Industry Creating Demand for Neem Oil

Neem oil is one of the crucial components of cosmetics, offering astringent and soothing properties. As a rich source of fatty acids and glycerides, it is widely utilised in skin care products and hair care products. These properties of neem oil reflect its demand in the cosmetic industry. With the consistent growth of the beauty market, the demand for neem oil surges.

• According to L'Oréal, the beauty market is growing over the years, and the graph below indicates an estimated growth for a range of years

Source: Loreal

This consistent growth underscores the utilisation of neem oil as a key component in beauty care products, propelling the market growth.

Consistent Agriculture Growth: A Direction to Surge in Neem Oil Demand

Neem oil is a key natural component playing a crucial role in the agriculture industry as a pesticide and plant growth promoter. Consistent growth of the agriculture sector propels the demand for neem oil as a crucial component.

• For instance, India is one of the major markets for agriculture, and every year the market is growing constantly. According to the Press Information Bureau, India, from 2017 to 2023, the agriculture and allied activities sector has grown by 5% every year and showed a 3.5% growth in the second quarter of the year 2024-25

This notable and consistent growth of the agriculture sector continues to demand neem oil as a pest controller and crop growth promoter.

Market Restraining Factor

Strong Competition from Alternative Products

Neem oil is being preferred in the agriculture sector as a pesticide. As it is of natural origin, the toxicity window remains low. However, neem oil itself finds strong competition as a pesticide from some alternative natural products.

• Pesticides developed from natural components such as diatomaceous earth, peppermint, thyme, and rosemary oil face strong market competition from neem oil
• In addition to this, homemade soaps prepared from vegetable oil are also utilised for pest control

The availability of natural products as pesticides imposes a challenging competition for neem oil.

Market Opportunity

Increasing Budget Allocations in Agriculture: An Opportunity for Allied Products

Neem oil is a key component in the agriculture industry, where it is used for two major functionalities such as pest control and plant growth. Being a natural component, neem oil serves better as compared to synthetic products. So, a year-on-year rise in budget allocations for the agriculture industry presents opportunities for market growth.

• For instance, the agriculture budget allocation by the U.S. has increased remarkably in 2025. It was USD 437.20 billion in 2024 and increased to USD 501.66 billion in 2025

This notable increase in budget allocation directs the demand for neem oil as a preferred natural pesticide.

Regional Analysis

The Asia Pacific region dominated the market with a revenue share of 37.59% in 2024. The growth is attributed to the rich source of neem in countries such as India, and countries from Southeast Asia, a dominant agriculture industry, traditional approach of using biobased products in agriculture, growing industries such as the cosmetics industry, and presence of majority of the players such as Manorama Industries Limited, Neem India, Ozone Biotech, Prerana Agro Industries, and others.

India is an agricultural country, where the demand for agriculture-related products is high. For instance, according to the Department of Agriculture & farmers' Welfare, 54.6% of the total workforce is engaged in agriculture and associated activities. In addition to this, 54.8% of the total land is agricultural. These key factors fuel the demand for pesticides and, hence, neem oil.

The U.S. neem oil market is experiencing strong growth with the expanding cosmetics industry, where neem oil is being preferred as an effective component for skin care. For instance, the U.S. FDA allocated USD 8 million to continue the development of modernised cosmetics.

The Government of Canada’s futuristic vision towards the bio-industrial sector presents opportunities for the neem oil market. For example, in August 2024, the Minister of Agriculture and Agri-Food announced USD 6,592,913 for bio-industrial innovation in Canada through the agriscience program.

Major cosmetics manufacturing companies are expanding their product portfolio through mergers and acquisitions of companies with bio-based products. For example, in April 2025, Unilever acquired personal care brand Wild, which offers natural products. Such initiatives by major end-use industry manufacturers diversify the neem oil market for cosmetics in the UK.

Brazil's government’s strategic and futuristic vision with respect to biofertilizers presents opportunities for market growth. For example, the Commerce and Services Committee of the Chamber of Deputies announced an incentive policy for the fertiliser and bio inputs industry. The country’s planning for the development of biological products is expected to be directed towards neem oil as one of the effective components.

South Africa- Neem oil is effective against multiple skin conditions such as scabies, atopic dermatitis, and other types. Its anti-inflammatory, anti-fungal, and anti-bacterial properties make it a key component for skin care. For instance, the prevalence of Seborrheic dermatitis is 8.82% in South Africa, which is the highest in comparison to other countries. This high prevalence significantly demands neem oil-based products for wound healing, and hence, the demand for neem oil to develop these products.

Source Insights

The seed segment dominated the market with a revenue share of 63.29% in 2024. The growth is attributed to a high concentration of insecticidal and fungicidal components. Being a rich source of these components, it is utilised for functionalities such as insect repellent, fungal growth inhibitor, antifeedant, insect growth regulator, and, in the case of skin products, as a hydrating agent, astringent, and soothing agent.

End Use Insights

The agriculture segment dominated the market with a revenue share of 32.63% in 2024. The growth is attributed to a shift towards biopesticides, a low toxicity window for humans as well as the environment, continuous growth of the agriculture sector, and high budget allocations by the government for agriculture and allied products. Additionally, preference given by farmers for bio-pesticides propels the demand.

Company Market Share

The Global Neem Oil Market is consolidated in nature due to increasing demand for biocompatible polymers, manufacturers’ collaborative investment to ensure the development of new products, and increasing manufacturing rate to align with the rising demand. Companies such as DPH biologics signed a licensing agreement with Kitozyme to develop sustainable Neem Oil seed treatment technology for advancement. The top players in the industry are BIO21 Co., Ltd., Qingdao Yunzhou Biochemistry Co., Ltd., Vietnam Food JSC., Jiangsu Aoxin Bioengineering Co., Ltd., and PRIMEX EHF.

Shay and Company: An emerging player in the neem oil market

Shay and Company is a small-scale company with multiple products in its portfolio. The company deals with organic and conventional products. The company has neem oil in its product portfolio. This product is available in colour from golden-yellow to dark brown. With a wide variety of products and experienced team members, Shay and Company continues to grow in the neem oil market.

List of key players in Neem Oil Market

1. Manorama Industries Limited
2. Neem India
3. Ozone Biotech
4. Neeming Australia
5. NOW Foods
6. Banyan Botanicals
7. SUN BIONATURALS
8. Grenera Nutrients PVT Ltd
9. ConnOils By Kraft
10. Prerana Agro Industries
11. Arora Aromatics Pvt. Ltd.
12. Uncle Harry's Natural Products
13. SULU ORGANICS
14. KAIRA ORGANIC WORLD
15. Sva Naturals
16. Others

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Recent Developments

• In September 2025 : Summit introduced NEEM 85, a high-performance cold-pressed neem oil concentrate designed for organic gardening and sustainable agriculture
• In May 2025 : Manorama Industries Limited strengthened its global presence through the establishment of 8 new subsidiaries across key regions, including West Africa, the UAE, and Brazil