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Los Angeles, CA (PRWEB) March 30, 2014
Pesticides have a buyer power score of 3.5 out of 5. This score reflects better negotiating conditions for buyers. This market has undergone a significant amount of change over the past three years as pesticide development has clashed with buyer sentiment concerning the potentially harmful effects of chemicals and toxins applied to buildings, homes and produce. According to IBISWorld procurement analyst Andrew Rebhan, prices in the three years to 2013 grew slightly, but were stunted with the growing popularity of genetically modified seeds and more eco-friendly pest control methods. Suppliers will start to focus more on non-farming business segments that have not had large shifts in their use of conventional pesticides, while also taking advantage of the growing biofuels market. Buyers in this market face some risk from the high volatility of raw material inputs and the effects of annual rainfall.
The buyer power score is weakened by the high level of market share concentration for pesticide producers. Suppliers in this market are large companies that have a strong control of the current output, reducing the amount of choice for buyers. Following a cost-plus pricing model, these suppliers try to establish mark-up prices to maintain steady profit margins, although this is becoming harder over time, and buyers will benefit from dropping profit levels over the next three years. Due to the unstable nature of raw materials that go into chemical manufacturing, buyers face a moderate level of risk along the supply chain, says Rebhan.
The pesticide market will begin to favor buyers more over the next three years. The shift towards using organic products and genetically modified crops on farmlands, combined with integrated pest control methods will reduce demand for pesticides, and thus prices. The level of pesticide substitutes is moderate but, because the market continues to be highly regulated, suppliers will be pressured to offer other alternatives to conventional chemical pest control. The top four vendors in the market are Arysta Lifescience Corporation, BASF Aktiengesellschaft, Bayer AG, and E. I. du Pont de Nemours and Company.
For more information, visit IBISWorlds Pesticides procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of pesticides. These products include chemical or biological substances used for preventing, controlling or killing plant, fungal or animal pests. Pesticides are used in agricultural, commercial and industrial settings to protect against insects, weeds, rodents, birds and a variety of other pest types. Pesticides are usually categorized according to the type of pest they help control and can be applied in the form of sprays, repellents, dips or powders. Pesticides are sold by manufacturers, chemical wholesalers and retailers.
Executive Summary Pricing Environment Price Fundamentals Benchmark Price Pricing Model Price Drivers Recent Price Trend Price Forecast Product Characteristics Product Life Cycle Total Cost of Ownership Product Specialization Substitute Goods Regulation Quality Control Supply Chain & Vendors Supply Chain Dynamics Supply Chain Risk Imports Competitive Environment Market Share Concentration Vendor Financial Benchmarks Switching Costs Purchasing Process Buying Basics Buying Lead Time Selection Process Key RFP Elements Negotiation Questions Buyer Power Factors Key Statistics
About IBISWorld Inc. IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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Pesticides Procurement Category Market Research Report Now Available from IBISWorld