|
LITTLE FALLS, N.J., Dec. 29 /PRNewswire/ -- In a mature market like
commercial pest control, new growth opportunities can be as scarce as a
dragonfly in the desert. But food processing plants and newly opened
restaurants may offer the best chance for pest control companies and their
chemical suppliers to increase market share, according to a study soon to be
released by Kline & Company.
Data from PEST CONTROL IN U.S. FOOD-HANDLING ESTABLISHMENTS 2005 indicates
that about 25% of food processing plants still use their own employees to
coordinate pest control management, as opposed to an outside pest control
company. In contrast, more than 90% of restaurants, kitchens, and warehouses
-- which make up the bulk of the food-handling pest control market -- use
contractors. While food processing plants represent a smaller market segment
overall, each plant is a high-value source of potential revenue for both the
pest control companies and pesticide marketers.
Klines study shows that, in general, restaurants and other facilities
operating kitchens are almost entirely dependent on pest management companies
for monitoring, diagnosis, and treatment. Warehouses and food processing
plants, while relying heavily on pest management professionals, are somewhat
more likely to use employees for this activity.
The implication for the industry is that growth for pest management
services in the kitchen categories will have to be based on increasing the
number of restaurants and schools serviced, whereas there is an opportunity
for increased market penetration in warehouses and processing plants.
"If you know that youre peaked out in restaurants, and that 90-plus
percent of them already have a pest control operator, you have to grow by
taking share from somebody else," says Dennis Fugate, industry manager of the
Specialty Pesticides practice for Klines market research division. "On the
other hand, if you can get a plant to convert to pest control, a single plant
is probably worth 10 or more restaurants in terms of volume, though theyre a
smaller segment of the market."
Klines study pegs the U.S. market for professional pest control services
at $5 billion in 2004. Commercial food-handling activities are likely to
represent about $1 billion in service revenue and nearly $100 million in
chemical use. Commercial food handling involves more than 600,000
establishments across the continental United States. Of that total, there are
more than 42,000 food processing plants, including everything from canneries
and bakeries to slaughterhouses and meat packagers.
"For pest control marketers, the continued use of employee-managed pest
control by a good number of food processing plants indicates a dual strategy
is needed to ensure full coverage of the market -- one that targets not only
the pest control segment but also examines where food processing companies
purchase pest control products," says Mancer Cyr, senior associate in Klines
Specialty Pesticides consulting practice.
The study also tracks an undercurrent of dissatisfaction in the market
regarding methods for dealing with flies, specifically in food processing
plants. However, some of the dissatisfaction may also be an indicator of the
persistence of the problem.
"In completing our survey, we noted that theres a definite interest in
new product forms and finding safer ways to handle fly problems with reduced
exposure to pesticides," says Fugate. "Flies are tough, though," he adds. "You
open the door for 10 seconds and you might end up with a fly infestation,
regardless of how clean the facility is."
He notes that pest management companies are looking to address this issue
by developing preventative methods that focus on exclusion -- teaching clients
to improve sanitation and keep doors closed, as opposed to using chemicals.
Food handling accounts for a major portion of the overall general pest
market, but researchers usually consider it only as an embedded segment of the
total market picture. Klines new study is the first large-scale market
research effort to focus specifically on opportunities for pest control
operators in food-handling establishments.
PEST CONTROL IN U.S. FOOD-HANDLING ESTABLISHMENTS 2005 examines the
methods, application responsibilities, products, costs, and market trends for
controlling pests in seven different classes of food-handling establishments,
including restaurants, hospitals, hotels, schools, food processing plants, and
warehouses.
For more information on this study, go to http://www.klinegroup.com/Y585.htm or
contact Dennis Fugate at +1-410-418-8934 or dennis_fugate@klinegroup.com. In
Europe, contact Pilar Pardo at +32 2 776 0737 or pilar.pardo@kline-europe.com.
For information on the customized consulting capabilities of Klines
Specialty Pesticides Practice, contact Mancer Cyr at +1-856-764-3536 or
mancer_cyr@klinegroup.com.
Established in 1959, Kline & Company (http://www.klinegroup.com) is a management
consulting and market research firm serving clients worldwide in the life
sciences, chemicals and materials, consumer products, and energy sectors.
For more information, contact:
Dennis Fugate
Industry Manager, Agribusiness
+1-410-418-8934
dennis_fugate@klinegroup.com
|
|
