U.S. structural pest control market surpasses $11 billion

Date:04-05-2023

The United States structural pest control industry generated total service revenue of $11.042 billion, a six percent increase from the $10.421 billion measured in 2021, according to the latest market report, A Strategic Analysis of the U.S. Structural Pest Control Industry from Specialty Consultants, LLC.  Total organic revenue growth for the professional pest control industry outpaced the 2022 U.S. GDP figure of 2.1 percent by nearly threefold this past year.  ″The industry growth might have been even more robust if companies were able to hire more service techs,″ said Rich Kalik, Partner. ″Nearly two of five owners or managers surveyed reported their business was held back by not having a sufficient number of technicians.″  There were an estimated 17,670 pest control firms operating in the U.S. this past year.

Service revenue derived from controlling cockroaches surpassed the revenue from controlling nuisance ants for the first time in more than 10 years.  Service revenue generated from controlling rodents in residential and commercial establishments increased by more than 13 percent, approaching $1.1 billion in 2022, or nearly ten percent of all revenue earned.  The only leading pest showing a decline in revenue generated was bed bugs.  ″We suspect the decline is likely a function of reduced travel during the pandemic and it may have impacted the incidence of bed bugs, particularly in the hospitality sector,″ said Kalik.  Respondents named bed bugs, ants, and flies as the top three pests they would like a better solution to control.

Sales of rodenticides containing SGARs contributed to more than three-quarters of all manufacturer level rodenticide sales this past year.  ″Nearly nine of ten respondents have not changed from using SGARs yet,″ said Kalik, ″but expect they might.″

Despite staffing challenges and a softening economy, the residential service segment expanded as pest control operators passed along price increases to their customers. Nearly 12.5 million residential customers received a professional pest control service this past year. Recurring revenue accounted for 85.8 percent of the residential pest control service revenue generated this past year, down slightly from 86.5 percent measured in 2021.  The commercial segment continued to rebound after a decline in 2020 from the impact of COVID-19 closures. While customer counts in portions of the professional pest control industry began to soften, price increases contributed toward the growth. With discretionary income on the decline, higher earning households still consider pest service an ″essential″ service. ″For 2023, we expect total industry revenues to increase by 5.0 percent or more,″ said Kalik.

The 2022 season market report is the 23^nd edition of A Strategic Analysis of the U.S. Structural Pest Control Industry.  A total of 800 owners or managers of pest control companies were surveyed for this study.  The syndicated market report is available for purchase only by subscription, sold in its entirety.