CEH Report

Table of Contents

Abstract

Agricultural insecticide consumption accounts for approximately 67% of the total dollar value of insecticides consumed annually in the United States. In 2002, grower-level sales of insecticides used in crop markets amounted to an estimated $1.2 billion. Two markets—corn and cotton—together accounted for 55% of the total agricultural market sales.

Major nonagricultural markets for insecticides in the United States total about $650 million. Important markets are professional pest control, livestock and poultry, stored grain, commercial ornamentals, consumer home and garden care and professional turf and lawn care.

The pest control industry is characterized by a high degree of government regulation affecting R&D, production, shipment, use and application of pesticide products. Compliance with federal and state government regulations has become increasingly complex and difficult.

Realistically, U.S. markets for the major groups of insecticides are likely to be down between 2002 and 2007. Increasing demand is expected for biological or "biorational" insecticides, including insect growth regulators, pheromones, microbial products and microbially derived toxins. Additional pesticide regulations and consumer fears regarding pesticides are leading to increased interest in the development of alternatives to traditional chemical pesticides.

Western European consumption of insecticides for crops was valued at $955 million dollars in 2002. The pesticide markets in Western Europe are mature. Between 1992 and 2002 the Western European insecticide market declined at an average annual rate of 1.5% in current U.S. dollars. Since 1997, the market has declined at a 4.2% average annual rate. The market for insecticides in Western Europe is expected to decline by about 1% per year from 2002 to 2007.

In 2002, the Japanese market for insecticide products at the grower level was estimated at about $1.3 billion. The market for insecticides in Japan has decreased in recent years. The decline is mainly in response to decreased cultivation of rice paddy fields. Also, reduced volumes of insecticides are applied to paddy fields because of the widespread practice of applying an insecticide to the rice seedling box (for control of the rice water weevil). Overall, the Japanese insecticide market is expected to shrink even further through 2007.