Pest control market growth is attributed to the implementation of stringent government regulations in the developed regions

Pesticides are chemicals or mixtures of chemicals that are used for the purpose of mitigating pest damage. Pest control is the management of specific species of insects that are recognized as detrimental to human health using these pesticides. House flies, bed bugs, cockroaches, and others tend to reside in places where there are human activities that can lead to serious health issues; thus, pest management has gained significant importance in the recent years.

The growth of the pest control market is attributed to the factors such as increase in urban population all around the globe, which has resulted in insignificant increase in food sources and conducive living habitats for various pests such as rodents, cockroaches, and mosquitoes. In addition, rapid migration is being witnessed from rural areas to urban centers, being more prevalent in developing countries such as India. This has further increased the population density of urban areas, which in turns is anticipated to fuel the demand for pest control products and services.

Furthermore, implementation of stringent government regulations in the developed regions, such as North America and Europe, toward conservation of environment and favorable government initiatives to promote the use of bio-based pesticides are expected to drive the growth of the global pest control market. In addition, constant changes in climatic conditions are a prominent factor for the growth of pests, as pests survive at elevated temperature, which further fuels the market growth. However, toxicity and health-related issues due to chemicals present in pesticides is a significant factor restraining the growth of the market. On the contrary, ongoing R&D activities to increase the dependency on bio-based pesticides are expected to offer lucrative growth opportunity.

Impact of COVID-19 on several industries in context with specialty chemicals

The COVID-19 pandemic has negatively affected the global economy and is subsequently shrinking the GDP in global economies; thereby, changing consumer spending patterns globally. However, global pest control market saw a mix effect due to COVID-19 pandemic. COVID-19 pandemic has put forward new challenges as well as new opportunity for the key players in the market. There was variation in company business; however, key players operating in the pest control service witnessed overall improvement in the business, owing to regions that were affected severely by coronavirus. Increase in the business was mainly attributed due to change in market dynamics and support from governmental body that have started offering subsidies to the pest control market key players.

Companies that offer pest control services such as disinfection and purification witnessed rise in the business, owing to increase in preference among people in territories such as Europe and South Africa. Recently, there is rise in dengue fever in South East Asia, coupled with COVID-19 infection people; therefore, are inclined toward pest control services for controlling the growth of mosquitoes. In addition, the pest control market is denoted as an essential industry, owing to efforts put forward by Australian Environmental Pest Managers Association (AEPMA) for development and enhancement of the industry during the pandemic situation.

Moreover, AEPMA has supported local key players in their region by conducting Code of Best Practice for disinfection, which is linked to the supply of pest control services across Australian region. To cope up their pest control business, several key players in the market are following various business strategies such as product launch, key expansions, collaborations, and acquisition to enhance their business and overcome their business in the pandemic.

For instance, in November 2020, Syngenta launched a new insecticide known as Spiropidion. It is an innovative pest control product that can be used to protect crops from wide array of sucking pests. This product launch has benefited farmers with new pest control product that helps target and damage most damaging sucking pest growth.

 

Market Scenario

The global pest control market is witnessing significant growth across the globe, owing to rise in economic activity, increase in urbanization, and upsurge in population. Increase in urbanization and population growth fuel garbage generation and concentration as well as trade and travel. These factors facilitate the spread of pests, and are considered as the primary factor that drives the growth of the pest control market.

Constant changes in climatic conditions are expected to lead to increase in pests; thereby, hampering yields of staple crops such as wheat, soybeans, and corn. While warmer temperatures create longer growing seasons and faster growth rates for plants, it simultaneously increases the metabolic rate and number of breeding cycles of insects. Insects that previously had only two breeding cycles per year, gain an additional cycle if warm growing seasons extend, causing a population boom. Thus, change in climatic conditions has led to increase in pests; thereby, fueling the growth of the market.

Pest management has become an integrated part of human life. Consistently changing lifestyle and drastic change in the population have led to increase in pests. In the agriculture industry, pest management has gained tremendous importance over the years to garner optimum crop yield. Moreover, increase in pollution has led to further growth of pests, which hampers the crop yields. This has enforced governments of numerous countries to implement various crop management policies and mandate use of insecticides in crop management.

Thus, due to increase in implementation of such policies, pest products are easily available in the market, which in turn drives the market growth. Pest control chemicals are extremely hazardous to non-targeted environment, such as air, water, and soil. However, application and developments of eco-friendly pesticides & herbicides are anticipated to reduce the harmful effects, making the eco-system safer for both humans and non-targeted living organisms. Organic pest control methods are less environmentally damaging, and less toxic to non-targeted insects, mammals, and aquatic life.

In 2018, Terramera launched a plant-based pesticide, RANGO, which contains highly effective and pant-based active ingredients. Many such plant-based pesticides are in pipeline, due to increase in need for bio-based chemicals in the chemical industry, which is anticipated to provide remunerative opportunities for the market growth.

There are several standards and programs that are incorporated for the efficient management of pest control products. For instance, Inter-Organization Program for the Sound Management of Chemicals (IOMC) was set up in order to enhance the international coordination in the field of chemical safety. Several regulatory frameworks are setup for governing and management of pesticide utilization. Several other legislations are also governing the side effects of pesticides that include legislation on environmental protection, public health, occupational health, water, food safety, wildlife, marine protection, plant protection, and general chemicals management.

On the other hand, several governmental and non-governmental organizations are updating the existing legislation for minimizing the side effects of pest control products on human health and environment. In addition, these new legislations also govern the product effectiveness on crops, livestock, and wildlife. Pest control products that are indented to be used in the food industry need to comply with regulations such as general food law in EU, food hygienic law, U.S. food safety legislation, GSI certifications, and others. HACCP law governs the utilization of pest control products in the hospitality sector. This law was put forward to monitor and inspect the pest control product’s risk and infestation, remove the risk related source, and for keeping record on incidence of pests and procedures used to avoid, supervise, and organize pests. Canadian government has also implemented acts and regulations for intended utilization of pest products that includes pest management regulatory agency and pest control products act.