Emerging Trends and Opportunities in the World Pesticides Market

• Publication date: November 2008

Just thinking about pests may be enough to provoke great anxiety in everyone from homeowners to farmers. Insects, rodents and noxious weeds can spread diseases, inflict injury, initiate allergies, trigger asthma and damage food—a major concern as the world population expands and food prices rise. It’s no wonder that the global and U.S. pesticide industry is growing and innovating in spite of vociferous challenges from extreme environmental gr...

Just thinking about pests may be enough to provoke great anxiety in everyone from homeowners to farmers. Insects, rodents and noxious weeds can spread diseases, inflict injury, initiate allergies, trigger asthma and damage food—a major concern as the world population expands and food prices rise. It’s no wonder that the global and U.S. pesticide industry is growing and innovating in spite of vociferous challenges from extreme environmental groups and heavy media scrutiny. In fact, Specialists in Business Information estimates the global pesticide market surged 29% over the 2007 level of $40.7 billion to $52.4 billion—a record increase that came at a time when a global financial crisis was in full swing.

This all-new Specialists in Business Information report looks at challenges and opportunities in pesticides market, such as biotechnology, nanotechnology, corporate ethics, counterfeiting and a special section on the green and organic movements.

The report contains detailed data and analysis describing the U.S. market for pesticides. And because the supply and demand of pesticides is much more expansive, the U.S. market is also looked at in the context of the global marketplace. The report examines both the value of the market, various components of trade, an analysis of economic factors affecting the industry, in addition to a major end-user market analysis.

Global Pesticide Industry

Chapter 1: Executive Summary

Scope of the Report

Methodology

Worldwide Market Size and Growth

Worldwide Market Surges 29%

Figure 1-1: Estimated Worldwide Pesticide Market, 1999-2008 (in billions of dollars)

U.S. Market Size and Growth

U.S. Market Up 25%

Figure 1-2: U.S. Pesticide Apparent Consumption and Percent of Worldwide Market, 1999-2008 (in billions of dollars)

Components of Trade

Table 1-1: U.S. Components of Trade: Shipments, Imports, Exports and Apparent Consumption 1999-2008 (in millions of dollars)

Market Forecast

Worldwide Market to $73 Billion and U.S. to $25 Billion by 2013

Figure 1-3: Estimated U.S. Pesticide Market Forecast, 2008-2013 (in billions of dollars)

Competitive Overview

Global Competition Level Moderate

Product Depth, Global Expansion Separate Company Castes

Merging of Businesses

Seeds of Paradigm Shift

Global Competitors

Table 1-2: Top 20 Pesticide Manufacturers by Worldwide Sales, 2004-2008 (in millions of dollars)

Trends: Challenges and Opportunities

Pesticides Harm Biodiversity?

Birds, Bees and….Humans May Suffer

Well-Organized Groups Target Industry

The Industry’s POV: Assertive and Meticulous

Another Touchy Subject: Animal Testing

Biotech: The Modern Pest Control

Genetic Modification Sees Biotech Backlash

Enter Nanotechnology

Agriculture Made More Difficult by Severe Weather

Growing Population & Rising Food Costs

Organic and Green Captures Country’s Attention

Pesticide Industry Perspective: Sustainability Is Not Black and White

End Users

Pesticide Expenditures Grow 13% Annually

Table 1-3: Estimated Share U.S. Pesticide Expenditures by Market Sector, 2008 (percent)

Figure 1-4: Estimated Share U.S. Pesticide Expenditures by Market Sector, 2008 (percent)

Chapter 2: The Market

Scope of the Report

Methodology

Pesticide Primer

Pesticides Uses

Pesticide Definitions

Herbicides

Fungicides

Insecticides

Other Products

Residual

Contact

Systemic

Genetically Modified Organisms

Integrated Pest Management

Worldwide Market Size and Growth

Worldwide Market Surges 29%

Figure 2-1: Estimated Worldwide Pesticide Market, 1999-2008 (in billions of dollars)

Market Surge Due to Largely Lower Dollar, Increased Prices

Growth in 2007 Driven by International Demand

Accelerated Growth Comes After a 2006 Pause

Table 2-1: Estimated Worldwide Pesticide Market and Year-over-Year Percentage Change, 1999-2008 (in billions of dollars)

Worldwide Market by Pesticide Type

Figure 2-2: Estimated Share of Worldwide Pesticides by Type, 2008 (percent)

U.S. Market Size and Growth

U.S. Market Up 25%

Figure 2-3: U.S. Pesticide Apparent Consumption and Percent of Worldwide Market, 1999-2008 (in billions of dollars)

Higher Prices Drive Growth, Volume Secondary

Table 2-2: U.S. Pesticide Apparent Consumption and Year-over-Year Percentage Change, 1999-2008 (in billions of dollars)

Components of Trade

Imports Fell 12% in 2008

Exports Rose 14% in 2008

Table 2-3: U.S. Components of Trade: Shipments, Imports, Exports and Apparent Consumption 1999-2008 (in millions of dollars)

Declining Dollar Causes Net Shipments, Imports Shift

Figure 2-4: U.S. Pesticide Net Shipments (Shipments less Exports) and Percent of U.S. Apparent Consumption, 1999-2008 (in billions of dollars)

Figure 2-5: U.S. Pesticide Net Shipments (Shipments less Exports) and Percent of U.S. Apparent Consumption, 1999-2008 (in billions of dollars)

Exports Resumes Long-Term Trend

Figure 2-6: U.S. Pesticide Exports and Percent of U.S. Shipments 1999-2008 (in billions of dollars)

U.S. Manufacturing Breakdown

Table 2-4: U.S. Pesticide Manufacturing Shipment Value by End-Use Market, 1999-2008 (in millions of dollars)

Lawn and Garden Pesticides Showed Greatest Period of Growth

Figure 2-7: Estimated Share of U.S. Pesticide Manufacturing by End-Use Market, 2008 (percent)

Agricultural & Commercial Pesticide Shipments

Figure 2-8: U.S. Agricultural & Commercial Pesticide Manufacturing Shipment Value and Percent of Total U.S. Shipments, 1999-2008 (in billions of dollars)

Lawn & Garden Pesticide Shipments

Figure 2-9: U.S. Lawn & Garden Pesticide Manufacturing Shipment Value and Percent of Total U.S. Shipments, 1999-2008 (in millions of dollars)

Household & Institutional Pesticide Shipments

Figure 2-10: U.S. Household & Institutional Pesticide Manufacturing Shipment Value and Percent of Total U.S. Shipments, 1999-2008 (in millions of dollars)

Bulk Pesticide Shipments

Figure 2-11: U.S. Bulk Pesticide & Other Agricultural Chemical Manufacturing Shipment Value and Percent of Total U.S. Shipments, 1999-2008 (in millions of dollars)

U.S. Imports by Pesticide Type

Table 2-5: U.S. Pesticide Imports by Type,1999-2008 (in millions of dollars)

Figure 2-12: Estimated Share of U.S. Pesticide Imports by Type, 2008 (percent)

U.S. Exports by Pesticide Type

Table 2-6: U.S. Pesticide Exports by Type, 1999-2008 (in millions of dollars)

Figure 2-13: Estimated Share of U.S. Pesticide Exports by Type, 2008 (percent)

U.S. Imports by Country of Origin

Table 2-7: U.S. Formed, Packaged, or Prepared Pesticide Imports by Country of Origin, 1999-2008 (in millions of dollars)

Figure 2-14: Estimated Share of Pesticide Imports by Country of Origin, 2008 (percent)

U.S. Exports by Country of Destination

Table 2-8: U.S. Formed, Packaged, or Prepared Pesticide Exports by Country of Destination, 1999-2008 (in millions of dollars)

Figure 2-15: Estimated Share of Pesticide Exports by Country of Destination, 2008 (percent)

Market Forecast

Worldwide Market to Reach $73 Billion

Figure 2-16: Estimated Worldwide Pesticide Market Forecast, 2008-2013 (in billions of dollars)

U.S. Market to Pause in 2009, Top $25 Billion by 2013

Figure 2-17: Estimated U.S. Pesticide Market Forecast, 2008-2013 (in billions of dollars)

Table 2-9: Forecast of Worldwide Market and U.S. Components of Trade: Shipments, Imports, Exports Apparent Consumption, 2008-2013 (in millions of dollars)

Global Financial Crisis

Pressure on Demand

Chapter 3: Competitor Profiles

Competitive Landscape

Global Competition Level Moderate

North American Competition Level Intensely Competitive

Bio-Pharma Style Boom Underway?

Product Depth, Global Expansion Separate Company Castes

Merging of Businesses

Seeds of Paradigm Shift

Global Competitors

Table 3-1: Top 20 Pesticide Manufacturers by Worldwide Sales, 2004-2008 (in millions of dollars)

Figure 3-1: Estimated Share of Worldwide Pesticide Sales by Company, 2008 (percent)

North American Competitors

Table 3-2: Top 20 Pesticide Manufacturers by North American Sales, 2004-2008 (in millions of dollars)

Figure 3-2: Estimated Share of North America Pesticide Sales by Company, 2008 (percent)

BASF Crop Protection

Overview

Performance

Table 3-3: BASF Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-3: BASF Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Fungicides Account for Lion Share

Figure 3-4: Estimated Share of BASF Pesticide Sales by Type, 2008 (percent)

Interceptor Malaria Nets Donation

F 500 Soybean Solution

Bayer CropScience

Overview

Performance

Table 3-4: Bayer CropScience Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-5: Bayer CropScience Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Herbicide Business 35% Share

Figure 3-6: Estimated Share of Bayer CropScience Pesticide Sales by Type, 2008 (percent)

New Corn Herbicide, Adengo

Bee-ing Helpful in Germany

Spirotetramat Granted Approval in U.S. and Canada

Dow AgroSciences

Overview

Performance

Table 3-5: Dow AgroSciences Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-7: Dow AgroSciences Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

2008 Presidential Green Chemistry Challenge Award

Fallout Between Dow and EPA Region 5

DuPont Crop Protection

Overview

Performance

Table 3-6: DuPont Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-8: DuPont Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Herbicides Accounts for More Than Half of Business

Figure 3-9: Estimated Share of DuPont Crop Protection Pesticide Sales by Type, 2008 (percent)

Valent Deal With Ingredient Flumioxazin

2008 R&D 100 Award for DuPont Rynaxypyr

FMC Corporation

Overview

Performance

Table 3-7: FMC Corp Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-10: FMC Corp Agricultural Chemical Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Insecticides Slightly Larger Piece of Business

Figure 3-11: Estimated Share of FMC Corp Pesticide Sales by Type, 2008 (percent)

FMC Disputes EPA Position in Carbofuran

Transport Termiticide Insecticide Approved by EPA in 2007

Exclusivity Deal for Sankyo Agro’s Simeconazole

Monsanto

Overview

Performance

Table 3-8: Monsanto Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-12: Monsanto Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Settlement of Pilot Grove Suit

Monsanto Teaming with Archer Daniels Midland and John Deere

Spectrum Brands, Inc.

Overview

Performance

Figure 3-13: Estimated Spectrum Brands Pesticide Sales, 2003-2007 (in millions of dollars)

Spectrum Sells Canadian Division Nu-Gro

CDC Recommends Picaridin, Ingredient Found in Spectrum Product Cutter

Syngenta AG

Overview

Performance

Table 3-9: Syngenta Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Figure 3-14: Syngenta Crop Protection Pesticide Net Sales by Destination, 2004-2008 (in millions of dollars)

Professional Products in The Mix, Account for 15%

Figure 3-15: Estimated Share of Syngenta Pesticide Sales by Type, 2008 (percent)

Syngenta and DuPont Develop Pioneer Hi-Bred Biotech

Donation to Maize Functional Diversity Group

Strategic Alliance with AgroFresh

Chapter 4: Trends: Challenges and Opportunities

Economic Crisis Peaks

2008 Real GDP Growth Forecasted at a Meager 1.1%

Figure 4-1: U.S. Current-Dollar GDP vs. Real GDP, 2000-2008 (in trillions of dollars)

GDP Price Index Ticked Up

Figure 4-2: Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (percent)

Economic Future Uncertain

U.S. Dollar Decline

Figure 4-3: Federal Reserve Bank of Atlanta Trade-Weighted Dollar Index, January 1995-September 2008 (index)

Producer Prices

Figure 4-4: Other Agricultural Chemicals Index, 1999-2008 (index)

Figure 4-5: Percentage Change in the Other Agricultural Chemicals Producer Price Index, 1999-2008(percent)

Commodity Prices

Figure 4-6 Percentage Change in Fruits & Melons, Fresh/Dry Vegetables & Nuts Indexes, 1999-2008 (percent)

Figure 4-7: Percentage Change in Grains and Hay, Seed and Oil Seeds Indexes, 1999-2008 (percent)

Philosophical and Scientific Challenges: Bioethics and Biodiversity

Pesticides Harm Biodiversity?

Bee-ware of Pesticides

Bobolinks Being Silenced

Dangers for Humans

Studying the Link Between Parkinson’s Disease and Pesticides

Contamination in Spain

U.S. Waters Brim with Pesticides

Endangered Species Up The Ante: Salmon

“Super Lice”

Well-Organized Groups Target Industry

The Industry’s POV: Assertive and Meticulous

Acknowledgement is Key

Bioethics Key But So Is Corporate Ethics

Another Touchy Subject: Animal Testing

New EPA Workgroup On Testing Paradigms

Other Side Loud and Proud: PeTA

Biotech: The Modern Pest Control

No-Till Agriculture = Better Conservation

Genetic Modification Sees Biotech Backlash

Fear of Super Weeds and Super Bugs

Gene Use Restriction Technology

Hard Questions In The Future

Enter Nanotechnology

Industry Hot on Nano

Is Nano As Scary as GM?

Agriculture Made More Difficult by Severe Weather

Expansion in Genetic Diversity to Counter Climate Issues

The Pesticide Industry’s Innovating in Face of Climate Issues

Growing Population + Rising Food Costs = Pesticide Perfect Storm

What Can Pesticide Companies Do?

Post-Patent Pesticides and Counterfeiting

Chapter 5: A Look at Organic and Green

Organic Captures Country’s Attention

The Science of Food Growth Scares People

Response to Post-WWII Food and Farming Innovations

Return to Smaller Scale Production and Less Processed Foods

Definition and Rules for Organic Foods

Definition of Local Foods and History of the Movement

How Local Is “Local”?

Is “Locally Grown” the Next “Organic”?

Buy Conventional Local Versus Buy Corporate Organic?

Media Spreads Green Culture

Beliefs Impacting Supermarket Shelf

Organic Foods Face Challenges

The Green Revolution

Pesticide Industry Perspective: Sustainability Is Not Black and White

Are Health, Safety and Organic Mutually Exclusive?

Pesticide Companies Talk The Talk

Green Movement Can Make Pesticide Industry Smarter

Compromise in Smaller Farms?

Organic Potential Problem for the Consumer Pesticide Marketplace

At-Home Integrated Pest Management

Organic Pesticides?

Lawn and Garden Pragmatism May Also Effect Marketplace

Native Lawns

Edible Yards

Impact of Alternative Consumer L&G Concepts

Chapter 6: Regulatory Overview

U.S. Federal Regulation of Pesticides

Pesticide Registration

Labeling: Pesticides

The Food Quality Protection Act

2006 EPA Pesticide Review

Controversy over Organophosphates, Carbamates

Improved EPA Pesticide Process

New Regulation Related to FIFRA

New EPA Restrictions Target Five Fumigants

Montebello Agreement

Issues For The Future

Animal Testing

Nanotechnology

Pesticide Data Program Continues Testing

Chapter 7: End Users

Market Sector Overview

Agricultural

Industry/Commercial/Government

Home & Garden

Pesticide Expenditures Grow 13% Annually

Table 7-1: Estimated Share U.S. Pesticide Expenditures by Market Sector, 2008 (percent)

Table 7-2: Estimated Annual User Expenditures of Pesticides and Year-over-Year Percentage Change, 1999-2008(in millions of dollars)

Agricultural Accounts for 68%

Figure 7-1: Estimated Share U.S. Pesticide Expenditures by Market Sector, 2008 (percent)

Growth Rockets in New Millennium

Figure 7-2: Estimated Annual User Expenditures of Pesticides by Major Market Sector, 1982-2008 (in billions of dollars)

Agricultural Market Sector

32% Year-Over-Year Growth in 2008

Agriculture Expenditure May Reach 70% Again

Figure 7-3: Estimated Annual User Expenditures of Pesticides: U.S. Agricultural Market Sector, 1999-2008 (in billions of dollars)

Table 7-3: Estimated Annual User Expenditures of Pesticides: U.S. Agricultural Market Sector; and Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)

USDA Sees Lower Growth in 2008

Figure 7-4: Purchased Pesticide Inputs for Agriculture Sector Production and Percent of Total Manufactured Inputs,1999-2008 (in billions of dollars)

Table 7-4: Purchased Pesticide Inputs for Agriculture Sector Production and Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)

Industry/Commercial/Government Market Sector

Growth in 2008 Robust But Outlook Dim

Figure 7-5: Estimated Annual User Expenditures of Pesticides: U.S. Industry/Commercial/Government Market Sector, 1999-2008 (in billions of dollars)

Table 7-5: Estimated Annual User Expenditures of Pesticides: U.S. Industry/ Commercial/ Government Market Sector; and Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)

Home & Garden Market Sector

Overall Unit Consumption May Be Tamed By Recession

Prices Increase 3% to 5% Likely

Figure 7-6: Estimated Annual User Expenditures of Pesticides: U.S. Home and Garden Market Sector, 1999-2008 (in billions of dollars)

Table 7-6: Estimated Annual User Expenditures of Pesticides: U.S. Home and Garden Market Sector; and Year-over-Year Percentage Change, 1999-2008 (in millions of dollars)

Exterminating & Pest Control Services

Service Industry Shows Steady Growth

Figure 7-7: U.S. Exterminating & Pest Control Services Revenues, 1999-2008 (in billions of dollars)

Appendix: Addresses