PARSIPPANY, NJ, NOVEMBER 12, 2012 –
Near half a billion U.S. industrial vegetation management market (IVM) for pesticides and fertilizers has seen a 5% decline on a same-segment basis since 2009, according to the recently published Industrial Vegetation Management Market for Pesticides and Fertilizers: U.S. Market Analysis and Opportunities report by global consulting and research firm Kline & Company.
The total IVM market includes forestry, rangeland and pastureland, aquatics, and traditional right of way (ROW) segments (utilities, pipelines, roadways, and railroads). The drop observed is mainly attributed to pressure exerted by the extensive use of lower cost generic herbicides, a fall-off in the housing market, and the reduced use of plant growth regulators and insecticides in the forestry sector.
Dennis Fugate, Industry Manager of Kline's Specialty Pesticides practice, notes, “The emphasis remains on accommodating lowered budgets and, in some cases, societal pressures to minimize pesticide applications. Growth will come from slow, steady spreading of noxious weeds; sporadic increases in invasive weed problems; or switching from mechanical to chemical control to save money.” Fugate continues, “This growth may be offset to some degree by the use of lower-cost generic versions of historically preferred products.”
Rangeland and pastureland, being the largest segment covered in this study, claimed almost 39% of total sales to IVM segments at the manufacturers’ level. But increased feeding costs, reduced herds, and profit squeezing on remaining producers have tempered growth in this sector. Roadways ranked second with a little over 17%. Herbicides, including aquatic herbicides, constituted the largest product category in 2011, accounting for over 97% of total sales.
Dow AgroSciences continued its dominance based on an unassailable position in range land and pastureland, as well as a strong showing in other sectors. The top three manufacturers, Dow, BASF, and DuPont, maintained a 60% total market share, but numerous generic companies occupying second tier positions are claiming an ever greater market prominence.
Kline’s Industrial Vegetation Management Market for Pesticides and Fertilizers: U.S. Market Analysis and Opportunities report presents the results of a comprehensive survey of the U.S. industrial vegetation management including rangeland and pastureland, forestry, aquatic areas, and the ROW segments, which include roadways, railroads, electric utilities, and pipelines. It analyzes in detail the products, weeds/brush they treat, their applications, estimated sales in 2011 at the manufacturers' level, suppliers' market shares, and qualitative issues. In addition, invasive weed details are included in the appropriate chapters with information about acres of key invasive weeds and the brands, volumes, and sales values of the products used to treat them.
A complimentary webinar sharing insights drawn from this report will be presented on Tuesday, November 27, 2012, at 9:00am U.S. EST. Please register here.
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.