U.S. Industrial Vegetation Market Down for Pesticides, Fertilizers, But Growth Seen
12 November 2012 The near half-billion dollar U.S. industrial vegetation management market (IVM) for pesticides and fertilizers has seen a 5% decline on a same-segment basis since 2009, according to a new report by Kline & Company.
The IVM market includes forestry, rangeland and pastureland, aquatics, and traditional right of way segments (utilities, pipelines, roadways, and railroads). Kline attributes the drop mainly to “pressure exerted by the extensive use of lower cost generic herbicides, a fall-off in the housing market, and the reduced use of plant growth regulators and insecticides in the forestry sector.”
Dennis Fugate, Industry Manager of Kline’s Specialty Pesticides practice, says, “The emphasis remains on accommodating lowered budgets and, in some cases, societal pressures to minimize pesticide applications. Growth will come from slow, steady spreading of noxious weeds; sporadic increases in invasive weed problems; or switching from mechanical to chemical control to save money.” Fugate continues, “This growth may be offset to some degree by the use of lower-cost generic versions of historically preferred products.”
Rangeland and pastureland, the largest segment covered in the study, claimed almost 39% of total sales to IVM segments at the manufacturers’ level. But increased feeding costs, reduced herds, and profit squeezing on remaining producers have tempered growth in this sector. Roadways ranked second with a little over 17%. Herbicides, including aquatic herbicides, constituted the largest product category in 2011, accounting for more than 97% of total sales.
According to Kline, Dow AgroSciences kept its overwhelmingly strong position in range land and pastureland, and made a strong showing in other sectors as well. The top three manufacturers, Dow, BASF, and DuPont, maintained a 60% total market share, but “numerous generic companies occupying second-tier positions are claiming an ever greater market prominence.”
(Source: Kline & Company; edited by FCI staff)
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