Pesticide Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The industry suffered in recent years due to increasing regulation, intense competition and rising environmental compliance costs. These trends are anticipated to continue in the future, dampening growth. However, players will become increasingly involved in a wider range of activities that encompass biotechnology and genetically modified organisms (GMOs), resulting in a modest increase in revenue. For these reasons, industry research firm IBISWorld has added a report on the Pesticide Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

A greater focus on biofuels will increase crop acreages and support demand for pesticides

IBISWorld estimates that the US agricultural industry loses about $20.0 to $30.0 billion to plant pests and diseases each year. The Pesticide Manufacturing industry manufactures chemical and pesticide products to manage these agricultural pests and diseases. Because of its ability to boost productivity, the industry is considered an integral part of the $200.0 billion US agriculture sector. However, over the past decade, actual pesticide use has experienced little growth. According to IBISWorld industry analyst Radia Amari, this stagnation has occurred because of the increasing adoption of integrated pest management strategies, organic farming, more selective herbicides and the development of biopesticides, which are increasingly being used as alternative pest-control agents. Moreover, the adoption of genetically modified crops in 2007 and low farmer income during the recession caused revenue volatility over the five years to 2012. Nonetheless, from 2007 to 2012, industry revenue will grow at an estimated average annual rate of 1.7% to $15.4 billion. As the economy continues to recover and farmers experience higher incomes, customers will encounter increased crop production and demand for pesticides. Revenue is thus expected to grow about 3.9% in 2012. This growth, however, will be partially stunted by higher operating costs, causing profit to drop.

Historically, agricultural output and income levels have been the most important determinants of demand for the Pesticide Manufacturing industry, but new variables have emerged in recent years to trouble pesticide manufacturers. These variables include the flow-on effects of biotechnology developments and the growing sizes of the areas dedicated to genetically modified (GM) crops. “Even with these potential concerns for the industry,” Amari says, “increases in the size of crop areas planted for biofuel will enable the industry to continue growth.”

While the industry is anticipated to experience revenue growth during the next five years, the number of manufacturers is expected to decrease. As firms sought to gain market share and research and development advantages, a number of companies underwent mergers and acquisitions from 2007 to 2012. As this trend of consolidation continues, firm numbers are projected to decrease over the five years to 2017. The three largest players, Bayer AG, E. I. du Pont de Nemours and Company, and Monsanto Company, account for less than half of total industry revenue, and the industry is expected to remain fragmented despite the consolidation of recent years. For more information, visit IBISWorld’s Pesticide Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry formulates and prepares agricultural and household pest control chemicals. Key products include pesticides (herbicides, insecticides and fungicides) and agricultural chemical products (insect repellents, sheep dips, fly sprays and flea powders). Key markets for this industry include the agricultural sector, households and various commercial and industrial users.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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