Simply the pest: High barriers to entry will weed out competition, keeping industry profit strong

Over the past five years, operators in the Pesticide Manufacturing industry have experienced growth in revenue despite recurring volatility due to changes in the regulatory environment, declines in the exchange rate and a declining number of farms. Moreover, industry profit margins have trended upward due to limited competition and high barriers to entry in the industry. Moving forward, industry operators are expected to continue growing, albeit at a slightly slower rate, as regulations are expected to continue to become more stringent. In addition, sustained demand from crop production and a projected increase in demand for more environmentally friendly products are also expected to boost industry revenue...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
1.8%
Forecast Growth 17-22
Profit
Employment
950
Businesses
39
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • High barriers to entry and low price competition have driven industry profit growth
  • Canadian farmers have limited access to generic pesticides due to heavy regulations
  • Farmers are lobbying for greater access to generic and imported products
  • Industry Report - Starting a New Business Chapter

    This industry has high barriers to entry. One of the main barriers is the regulatory requirements that industry operators must fulfill before they are cleared to launch a marketable pesticide. This provides existing operators some leeway in setting high prices and consolidating their market positions, while fighting off aspiring competitors.Significant research and development (R&D) requirements pose additional barriers. It can take up to 10 years and millions of dollars to bring a new, environmentally sound crop protection product to market. Moreover, the ability to maintain a technological edge is critical. Players will increasingly need to invest in R&D and new plants and equipment. The initial capital outlay required to enter this industry can be quite substantial. Ope...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 Demand from crop production and Canadian-dollar effective exchange rate index in the Pesticide Manufacturing industry impact industry performance..

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    What's in this report

    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 insecticides
  • Manufacturing herbicides
  • Manufacturing fungicides
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from crop production
  • Canadian-dollar effective exchange rate index
  • World price of crude oil
  • World price of natural gas
  • Consumer price index for food

  • Current Performance
  • International trade
  • Regulatory hurdles
  • Agricultural demand
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory environment will remain a threat
  • International trade
  • Industry landscape
  • 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 in Canada
  • Corn Farming in Canada
  • Vegetable Farming in Canada
  • Fruit & Nut Farming in Canada
  • Plant & Flower Growing in Canada

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

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

  • Demand Determinants
    Major Markets
  • Potato farming
  • Other crops and vegetables
  • Livestock
  • Exports
  • Households
  • 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
    ProfitPurchasesWagesOther
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Includes:
  • 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)
  • World Price of Natural Gas (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fungicide
  • A chemical used to control and prevent fungal diseases in plants.
  • Herbicide
  • A chemical that kills unwanted plants and weeds.
  • Insecticide
  • A chemical that kills insects.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pesticide Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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