Non-agricultural pesticide market boosted by home gardening trend

About half of the approximately 600 products used in agriculture are also sold in non-agricultural pesticide markets. This sector is made up of 6 main segments: home and garden, lawn and ornamental plants, professional pest control, industrial vegetation control, vector and mosquito control, and forestry. Other smaller segments are aquatic weed control, wood preservatives and rodenticides.

The non-agricultural pesticide market was valued at US$8.7 billion at ex-manufacturer level in 2021, or approximately 12% of the total global crop protection market. The upstream value of this market, incorporating value added through formulation and packaging, marketing and application/service, is worth more than $60 billion.

The global non-agricultural market has been growing at around 5% per year and is expected to continue to do so, but it is both highly fragmented and complex. North America is the largest region with nearly 50% of the total market, followed by Asia (25%) and Europe (17%).

Each sector has its own dynamics, value chain and drivers. All segments except Home & Garden are Business to Business (B2B) markets, while Home & Garden is a Business to Consumer (B2C) market. However, a common driver for all sectors is gross domestic product (GDP). Other drivers are increasing free time for gardening and growing concern about pests and disease, compounded by the recent COVID pandemic.

The non-agricultural market is very competitive. All the major R&D-based crop protection companies are present in this market: Bayer, Syngenta, BASF, Corteva, FMC and Sumitomo. Many generic companies are also participating, and several have recently entered or expanded through the acquisition of non-agricultural companies to gain access to this sector and benefit from increased sales of their products. . Bayer has always been the leader in some way, although at the time of writing it is divesting a significant portion of its non-agricultural business.

For companies that report profitability, the level is similar to or better than their crop protection business (eg Amvac, Syngenta). This is mainly due to falling sales and marketing costs for B2B markets and rising prices due to market segmentation.

Some other companies not involved in agriculture are also engaged in specific sectors, including SC Johnson and Scotts Miracle-Gro in the home and garden sector, PBI Gordon in turf and ornamentals, and Rentokil Initial in the professional pest control.

Many products originally developed for plant use in agriculture are subsequently licensed for use in the non-agricultural sector. New assets are generally not developed specifically for this sector. The exception is vector control where CCSVI has been implemented specifically to enable the development of dedicated active ingredients.

There is a wide variety of formulations and packaging developed specifically for the different sub-sectors and the active ingredients can often represent a very small proportion of the total cost of the final product. This is the case for home and garden products, professional pest control services and mosquito nets for vector and mosquito control.

Some older products have come under significant regulatory pressure and been removed from non-agricultural uses. An example is chlorpyrifos. There is particular legal pressure on glyphosate, despite the product being one of the safest available.

Until now, it has been very difficult to quantify the size and composition of this market. Drawing on industry experience and primary data developed by the S&P Global CropScience unit, our new report fills this gap and provides the first comprehensive quantitative assessment of the global non-agricultural pesticide market in over 20 years.

The specific characteristics of the report are:

  1. A detailed breakdown by sector, country, product and company
  2. Company profiles of the 15 leading companies covering their product lines and the sectors in which they operate
  3. Benchmarking Non-Agricultural Products Market to CP market size by country, product and company
    1. Sales ranges of key active ingredients (AI) in each product class: herbicides, insecticides, fungicides and plant growth regulators (PGRs)
    2. Market estimates for 40 countries
  4. Analysis of the value chain from the technical materials provided to the value of the final product/service offer
  5. Analysis of market growth drivers
  6. Forecasts by region and by sector until 2026

Posted on October 17, 2022 by Alan BullionDirector of Special Reports and Projects, Agribusiness, S&P Global Commodity Insights


Jonathan ShohamSenior Consulting Analyst, Agribusiness, S&P Global Commodity Insights

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.

Terri S. Tomasini