The bee's knees: Products such as biopesticides represent a potential industry growth area

The Australian Pesticide Manufacturing industry has faced a challenging operating environment over the past five years. Key patents have expired, leading to rapid growth in generic pesticide products, which has negatively affected the industry’s performance. As consumers have become increasingly concerned about pesticides in the food chain, industry regulations have increased, particularly as residual detection methods have improved. Several active ingredients have been withdrawn in view of human health concerns, which has reduced the industry’s product portfolio, forcing industry players to incur the escalating costs associated with bringing new active ingredients to market. The industry has also contended with volatile weather conditions...read more.

Industry Statistics & Market Size
Revenue
$997m
Annual Growth 14-19
-1.8%
Forecast Growth 19-24
Profit
Employment
925
Businesses
64

Industry Threats & Opportunities

  • Operators will contend with ongoing environmental, health and safety concerns about pesticides
  • Profitability has fluctuated in line with changing input costs and demand patterns
  • The industry will come under further pressure to develop more environmentally friendly products
  • Industry Report - Industry Locations Chapter

    Pesticide manufacturing companies are located in New South Wales, Victoria, Queensland, South Australia and Western Australia. In 2018-19, the three eastern seaboard states are expected to account for just under 85% of all industry enterprise numbers, with the balance mainly located in Western Australia. This proportion suggests a high degree of geographic concentration.The industry's geographic spread partly reflects manufacturers seeking to be located close to their selected markets, given the nature of pesticide production processes. By adding bulk to part synthesised solvents and other locally available chemicals near the market, manufacturers can save on freight costs...purchase to read more.

    Additional Insights for the Pesticide Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Pesticide Manufacturing are:

  • Having marketing expertise
  • Undertaking technical research and development
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture and Realised farm income in the Pesticide Manufacturing industry impact industry performance..

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    What's in this report

    What is the Pesticide Manufacturing Industry?

    The industry includes companies that manufacture chemicals designed to control pests, weeds or fungi. Its three main product types are herbicides, fungicides and insecticides, most of which target agricultural users. Industry firms also manufacture ready-to-use products used by non-agricultural markets including households, turf growers and professional pest management companies.

    Industry Products
  • Herbicides
  • Insecticides
  • Fungicides
  • Other agricultural chemicals
  • Industry Activities
  • Animal dip, animal spray and fly spray
  • Formulated pest control product
  • Fungicide
  • Insect repellent
  • Insecticide
  • Plant hormone and seed dressing
  • Rat poison
  • Soil fumigant
  • Weedkiller
  • 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 agriculture
  • Realised farm income
  • Trade-weighted index
  • Level of annual rainfall
  • Demand from organic farming

  • Current Performance
  • Higher profitability and prices
  • Industry consolidation
  • Improved international performance
  • Changing product portfolios
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential growth constraints
  • Modifications ahead
  • 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
  • Floriculture Production
  • Grain Growing
  • Cotton Growing
  • Shearing, Cropping and Agricultural Support Services
  • Building Pest Control Services

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Basic Organic Chemical Manufacturing
  • Fertiliser Manufacturing
  • Industrial Gas Manufacturing
  • Soap and Cleaning Compound Manufacturing

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

  • Demand Determinants
    Major Markets
  • Broadacre industries
  • Other agricultural and horticulture industries
  • Export markets
  • Households
  • Non-agricultural users
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Pesticide Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pesticide Manufacturing Industry

  • Industry Globalization
    Nufarm Limited, Bayer CropScience Holdings Pty Ltd,
  • Table: Nufarm Limited - financial performance
  • Table: Bayer CropScience Holdings Pty Ltd - financial performance

  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Actives
  • The chemicals responsible for the biological effect on a targeted species of plant or insect.
  • Crop-Protection Products
  • A generic term referring to pesticides or agrochemical products.
  • Fungicide
  • An agent, such as spray or dust, used to prevent or control fungal plant diseases.
  • Glyphosate
  • A broad spectrum organophosphate herbicide used to control herbaceous and woody weeds particularly found on croplands.
  • Herbicide
  • A chemical or biological agent that prevents or reduces weeds.
  • Insecticide
  • A substance used to kill insects.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pesticide Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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