Dropping like flies: Chemical concerns and a plague of low-cost imports affect industry numbers

The Australian Pesticide Manufacturing industry has faced a challenging operating environment over the five years through 2016-17. Key patents have expired, leading to rapid growth in generic pesticide products, which has negatively affected the industry's performance. Furthermore, as consumer concerns about the use of pesticides in the food chain have increased, so too have industry regulations, 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 Several active ingredients have been withdrawn in view of human health concerns, which has reduced the industry's product portfolio, forcing industry operators to incur the escalating costs associated with bringing new active ingredients to market...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

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
  • Rising food security concerns should boost demand for crop-protection products
  • Industry Report - Industry Analysis Chapter

    The Australian Pesticide Manufacturing industry mainly manufactures herbicides, insecticides and fungicides for use in the Agriculture subdivision, with a smaller proportion of products geared towards use by households and professional pest controllers. Demand for these products is cyclical and influenced by climatic conditions, commodity prices and the prevalence of pests. These can all vary significantly year to year. In particular, both droughts and flooding have affected revenue over the period. For example, mild El Nino weather patterns in 2015-16 caused drought conditions across much of eastern Australia’s agricultural regions, but more reliable rainfall patterns in Western Australia. This affected demand patterns for industry products across domestic geographic markets. Ris...purchase to read more.

    Additional Insights for the Pesticide Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pesticide Manufacturing Industry 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. The industry also manufactures ready-to-use products used by non-agricultural markets including households, turf growers and professional pest management companies.

    Industry Products
  • Herbicides
  • Insecticides
  • Fungicides
  • All other agricultural chemicals
  • Industry Activities
  • Animal dip, animal spray and flyspray
  • 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
  • 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
  • Insecticides
  • All other agricultural chemicals
  • Fungicides
  • Chart: Pesticide Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Broadacre industries
  • Other agricultural and horticulture industries
  • Export markets
  • Non-agricultural users
  • Households
  • 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
  • Profit
  • Purchases
  • Wages
  • Other expenses
  • 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, Syngenta Australia Pty Ltd,
  • Table: Nufarm Limited - financial performance
  • Table: Bayer CropScience Holdings Pty Ltd - financial performance
  • Table: Syngenta Australia 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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.
  • Tillage
  • The agricultural preparation of land for growing crops. Soil tillage can facilitate the preparation of a seedbed for more efficient seeding.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pesticide Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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