Simply the pest: Falling prices of agricultural commodities will cut into production

Operators in the Pesticide Manufacturing industry in Canada produce a range of goods including herbicides, fungicides, insecticides and other agricultural chemicals. The industry has experienced growth over the past five years, although weak conditions in downstream farm production early in the reporting period resulted in poorer performance between 2014 and 2017. However, demand for many industry products tends to be fairly inelastic. The next five years are expected to result in improved performance for industry operators. The prices of key agricultural commodities such as wheat are likely to rise, which would benefit production by downstream farms and lead to increased demand for industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • High barriers to entry and comparably few domestic operators help to keep product prices high
  • Regulatory changes have reduced household demand for pesticides
  • The industry is highly regulated, which results in high compliance costs for operators
  • Industry Report - Industry Analysis Chapter

    Operators in the Pesticide Manufacturing industry in Canada produce herbicides, fungicides, insecticides and other agricultural chemicals with the aim of preventing pests, weeds, fungi and plant diseases from harming crops. The industry has experienced mostly meagre growth over the past five years due to weak conditions in downstream farm markets, as the prices of various agriculture products such as wheat have fallen. However, limited competition and falling input prices have benefited profit margins, and overall, the industry is forecast to grow at an annualized rate of 1.3% to $1.3 billion. This includes a forecast growth of 1.8% in 2019 alone in response to rising agricultural prices and stronger activity levels from downstream farms...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

  • Undertaking technical research and development
  • Having marketing expertise
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from crop production and Canadian effective exchange rate index in the Pesticide Manufacturing industry impact industry performance..

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    What's in this report

    What is the Pesticide Manufacturing Industry?

    Operators in this industry manufacture household and agricultural pest control chemicals. Industry products include pesticides and agricultural chemical products such as herbicides, insecticides, fungicides, insect repellents, sheep dips, fly sprays and flea powders. This industry does not manufacture fertilizers.

    Industry Products
  • Herbicides
  • Insecticides
  • Fungicides
  • Industry Activities
  • Manufacturing insecticides
  • Manufacturing herbicides
  • Manufacturing fungicides
  • 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 crop production
  • Canadian effective exchange rate index
  • World price of crude oil
  • World price of natural gas
  • Consumer price index for food

  • Current Performance
  • International trade
  • Agricultural demand
  • Regulatory hurdles
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Regulatory environment will remain a threat
  • International trade
  • Industry landscape
  • 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
  • Soybean Farming in Canada
  • Corn Farming in Canada
  • Vegetable Farming in Canada
  • Fruit & Nut Farming in Canada
  • Plant & Flower Growing in Canada

  • Key Selling Industries
  • Fertilizer Manufacturing in Canada
  • Inorganic Chemical Manufacturing in Canada
  • Organic Chemical Manufacturing in Canada
  • Oxygen & Hydrogen Gas Manufacturing in Canada

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

  • Demand Determinants
    Major Markets
  • Oilseed and grain farming
  • All other
  • Fruit and vegetable farming
  • Livestock farming
  • Exports
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Pesticide Manufacturing

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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 (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)
  • World Price of Natural Gas (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A chemical used to control and prevent fungal diseases in plants.
  • Herbicide
  • A chemical that kills unwanted plants and weeds.
  • Insecticide
  • A chemical that kills insects.
  • What Our Customers Say

    Why buy this report?

    The Pesticide Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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