Target organism: More GM crops will keep industry revenue in a moderate decline

Over the five years to 2017, companies have been negatively affected by declining demand and the subsequent reduction in industry product purchases from the agricultural sector. Additionally, volatile input prices have constrained profit margins. The ongoing adoption of genetically modified (GM) crops combined with lower farmer incomes, especially in the second half of the five-year period, caused revenue volatility to increase over the five years to 2017, with revenue estimated to decline. As the global supply glut of seeds and grains continues, crop production will continue to be negatively affected. In turn, demand for pesticides will more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
What Our Customers Say

Industry Threats & Opportunities

  • As the global supply glut of seeds and grains continues, crop production will continue to be negatively affected
  • The industry’s largest players have all pursued acquisitions to remain viable
  • Continued global efforts to ban certain pesticide products will adversely affect the industry
  • Industry Report - Industry Key Buyers Chapter

    The industry has high market share concentration and the top five players in the industry account for 77.0% of its revenue. According to the Freedonia Group, there are fewer than 20 basic manufacturers of active pesticide ingredients, and the top five players account for the majority of national demand. This trend is echoed on a global scale, with the top seven manufacturers supplying over 80.0% of the global market.Over the next five years, IBISWorld expects market share concentration to increase. In 2015, two major players in the industry Dow Chemical Co. and DuPont Co. announced a merger that would initially combine the two companies and then split into three separate businesses. This merger is expected to go through in the third quarter of 2017. Ano...purchase to read more.

    Additional Insights for the Pesticide Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pesticide Manufacturing Industry are

  • Undertaking technical research and development
  • Having marketing expertise
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Agricultural price index and Demand from crop production in the Pesticide Manufacturing industry impact industry performance..

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    What is the Pesticide Manufacturing Industry?

    Operators in this industry manufacture household and agricultural pest control chemicals. Industry products include pesticides and agricultural chemical products, such as herbicides, insecticides, fungicides, insect repellents, sheep dips, fly sprays and flea powders. This industry does not manufacture fertilizers.

    Industry Products
  • Herbicides
  • Insecticides
  • Fungicides
  • Industry Activities
  • Manufacturing arsenate insecticides
  • Manufacturing botanical insecticides
  • Manufacturing chlordane insecticides
  • Manufacturing dichlorodiphenyltrichloroethane (DDT) insecticides
  • Manufacturing exterminating chemical products (e.g. fungicides, insecticides and pesticides)
  • Manufacturing fungicides, including lime-sulfur fungicides
  • Manufacturing herbicides
  • Manufacturing plant-growth regulators
  • Manufacturing sulfur insecticides
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Agricultural price index
  • Demand from crop production
  • World price of crude oil
  • Price of natural gas
  • Trade-weighted index

  • Current Performance
  • Recovery slows
  • Demand falls
  • Industry participation decreases
  • Offshore manufacturing remains a threat
  • Chart: Revenue Growth

  • Industry Outlook
  • Product demand
  • Environmental concerns
  • Table: Pesticide Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pesticide Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming
  • Corn Farming
  • Wheat, Barley & Sorghum Farming
  • Fruit & Nut Farming
  • Cotton Farming
  • Sugarcane Harvesting

  • Key Selling Industries
  • Fertilizer Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Oxygen & Hydrogen Gas Manufacturing

  • Products & Services
  • Herbicides
  • Fungicides
  • Insecticides
  • Other
  • Chart: Pesticide Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Agriculture, livestock and dairy sectors
  • Exports
  • Households and other
  • Chart: Major Market Segmentation for the Pesticide Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and Utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Pesticide Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pesticide Manufacturing Industry

  • Industry Globalization
    Syngenta AGThe Dow Chemical CompanyMonsanto Co.Bayer AGE.I. du Pont de Nemours and Company
  • Table: Syngenta AG - financial performance
  • Table: The Dow Chemical Company - financial performance
  • Table: Monsanto Co. - financial performance
  • Table: Bayer AG - financial performance
  • Table: E.I. du Pont de Nemours and Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pesticide Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pesticide Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Oil and natural gas price index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Genetically Modified (Gm)
  • Crops or seeds that have had their genetic makeup altered to achieve certain results, such as pest-resistance.
  • Glyphosate
  • A broad-spectrum systemic herbicide used to kill weeds, particularly perennials. Glyphosate is estimated to be the most-used herbicide in the United States.
  • Pesticides
  • Substances or a mixture of substances designed to prevent, destroy, repel or mitigate pests.
  • Selective Herbicides
  • Herbicides that target specific organisms, while leaving the desired crop relatively unharmed.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Pesticide Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pesticide Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pesticide Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pesticide Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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