This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
Although recent price growth for pesticides has been kept in check by the growing popularity of more ecofriendly alternatives, buyer power in this market has been limited by the high volatility of raw material inputs used in the manufacturing process. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of pesticides in its growing collection of procurement category market research reports.
Los Angeles, California (PRWEB) August 18, 2014
Pesticides have a buyer power score of 3.4 out of 5. This score reflects moderate negotiating conditions for buyers. IBISWorld business research analyst Pierre Dessertenne says, despite the high buyer power score, 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. Prices have grown slightly during the three years to 2014 but were kept in check by the growing popularity of alternatives, such as genetically modified organism (GMOs) and more ecofriendly pesticides. Buyers in this market face some risk from the high volatility of raw material inputs and the effects of annual rainfall. Major vendors in the market include Dow Chemical, DuPont, Bayer AG and Nufarm.
High market share concentration for pesticide producers has weakened buyer power. Suppliers are large companies that have a strong control of the current output, reducing the amount of choice for buyers. These suppliers try to establish mark-up prices to maintain steady profit margins, but this is becoming more difficult over time, and buyers will most likely benefit from dropping profit levels over the next three years, says Dessertenne. Due to the volatile price of raw materials that go into chemical manufacturing, buyers face a moderate level of risk along the supply chain. Buyer power is further reduced when buyers purchase GMO seeds and compatible pesticides because switching costs increase dramatically.
The pesticide market will begin to favor buyers more over the next three years. The shift toward using niche, environmentally friendly pesticides and genetically modified crops on farmlands, along with integrated pest control methods, will reduce demand for conventional pesticides. Currently, conventional pesticides make up the bulk of sales volume and revenue for both manufacturers and distributors. As a consequence, the rise of nontraditional environmentally friendly chemicals is expected to make suppliers lower prices for conventional pesticides. The availability of substitutes for pesticides is moderate but, because the market continues to be highly regulated, suppliers will be pressured to offer other alternatives to conventional chemical pest control. For more information, visit IBISWorlds Pesticides procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
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. This report does not include genetically modified organisms (GMOs) with pesticide properties or disinfectants.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/08/prweb12102731.htm
Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact firstname.lastname@example.org.