Industry trends

Economic growth

Continued economic growth is expected to increase the global middle class and lead to more consumers with disposable incomes and an increased demand for pest control services. Nearly 1.6 billion people are expected to join the middle/consuming class over the next ten-year period, which is the demography most likely to use pest control services. Approximately 90 percent of global consumption growth in 2015 to 2030 is anticipated to be driven by people living in cities, with approximately 30 percent of consumption growth originating from China and more than 50 percent from emerging markets in total. A rise of the middle class could serve as a substantial driver for both price increases and volume growth in the pest control market, with the majority of the growth originating in emerging markets.

Regulation and legislation

Implementation of stringent government regulations in developed regions, such as North America and Europe, towards increasing hygiene standards through increased inspection and documentation is expected to drive growth in the pest control market. Restrictions on the use of residential rodenticide and increased hygiene and sanitary standards can decrease the potential for customers to seek “do-it-yourself” solutions and instead redirect customers to qualified pest control providers. One example in the United States is the National Pollutant Discharge Elimination System (NPDES), included in the Clean Water Act published in 2015, requiring additional permits to apply biocides to standing water. Increased complexity from this transition towards a more regulated market is likely to place additional pressure on smaller local and regional pest control players and benefit larger and well-established players of greater scale.

Industry trends

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