Beyond-Agriculture: Expansion Persists

Broad Gains

Against expectations and in defiance of the global economic recession, the non-crop market for pesticides – now know as Beyond-Agriculture - has recorded continuing growth in almost every major country including China.   According to the latest detailed global survey from GfK Kynetec* it is now worth around US$25 billion at end user level.

This positive trend in demand has persisted without a break since 1992, with solid data proving the resilience of a fast-growing, profitable outlet for pesticide active ingredient manufacturers and more especially for downstream formulators, branded product owners and distributors.

Unlike crop protection, it is worth remembering that the use of pesticides outside agriculture is not supported by any subsidy.  On the contrary, it attracts negative publicity in the media, and many governments actively pursue policies to discourage wider uptake among the general public.   Yet it is precisely the consumer over-the-counter home and garden markets that have seen the most successful development of new branded pesticides in response to signals from end users that they are looking for products that will make a material contribution to improved comfort, convenience and also – crucially – to the health of their families.   For crawling and flying insects like cockroaches and mosquitoes, there are in truth few alternatives to pesticides for effective and inexpensive control available to households, especially in poorer countries where needs are often greatest.

Beyond home and garden, almost all other parts of the non-crop market such as turf, professional pest control, ornamentals, industrial weed control, timber treatment and forestry have recorded significant gains as well.  

Looking Ahead

What conclusions can be drawn ?   It seems that the powerful demand for B-A pesticides reflects a deeply entrenched desire by people to improve their quality of life; specifically to be rid of the pests that once upon a time seemed a non-negotiable part of the living conditions of a large part of the world’s population.   What has changed in the last two decades is that disposable incomes for most people have advanced significantly, and with that have come better pesticide products and much improved distribution channels to make these products available to almost every man, woman and child on the planet.  

Yet, in many ways we are only at the beginning of a journey.   Average per capita expenditure across the world as a whole on non-crop pesticides is around US$3.00-US$3.50.   Although growing fast, this is but a fraction of the US$26 spent in Canada, or US$19 in Japan, or US$10 in much of Europe.   Given the greater severity of pest problems people face in the majority of developing countries close to the equator, the desire to improve their living environment suggests that they will spend more on B-A non-crop pesticides wherever disposable incomes permit.  

*GfK Kynetec provides the only detailed data on all parts of the complex, changing and rapidly growing global non-crop market.