NON-CROP
The hunt for information
This month we take a more in-depth look at the
factors that influence the development of credible
market data and intelligence in non-crop and the
limited number of available sources
A
t the recent Beyond Agriculture The US approach
commercial seminar run by The picture, as with many industries, is different
PestBusiness.com at the BCPC in the US, where the critical mass of the market
Rob Fryatt
event in Glasgow, much of the attracts more companies and is therefore better
discussion between the international delegates researched than most. With both turf and pest
surrounded the lack of available market data and management markets in excess of US$500 database across all the major territories and
intelligence for non-crop markets. Why should million, each has its specialist companies market segments.
this be for a market that is acknowledged now collating the data. Again, as with many
to be of significant value and growing at a faster industries the interests of both the purchasers Without doubt this has led many companies
rate than crop markets? of the information and the professional and to build their own in-house market data
specialist companies collating the data do not processes, collating data from their own
The recently published Agrow report – Global reach beyond the boundaries of the Atlantic subsidiary companies around the globe. It’s
Non-Crop Pesticide Markets: 2007 Edition and Pacific Oceans. As an example, the US pest possible if a company has these subsidiaries
– profiles a market growing at 4-5% with the management industry increasingly uses the and the dedicated local market specialists who
last global estimate of its size by AIS in 2005 at work of Specialty Products Consultants LLC as its understand both the global needs of corporate
US$15,000 million. The report identifies over common database, with many manufacturers, product and business managers, and which have
60% of this market value in the ‘self-applied’ distributors and service delivery companies all the ability to generate local data that also serves
category, the majority of this being purchased by purchasing common data collected at both the their own and local management marketing
the consumer as home and garden pesticides. service and ex-manufacturer level. requirements.
Even with a value of US$10 billion, the home
and garden pesticide market is still small Collecting market value data at all levels in the Non-crop, with its differentiated formulations
compared to the global markets for cleaning chain, is rarely seen outside the US where it and small pack markets, has always presented
materials, disinfectants and soap powders and, remains the manufacturers who are the sole data problems within major corporations.
as such, gets little recognition from the global purchasers of market data. The lack of interest Consider a company that has as its basic volume
consumer purchasing databases. So much so, in this data from anyone other than the large measure kilograms of active chemical. For most
that many global marketing companies supplying international manufacturers in itself limits the rodenticides, that means adding up the market
this market, such as Scotts and SC Johnson & market for professional research companies in prescribed blocks where one kilogram of
Sons, have set up their own consumer panels to and, as a result, the data tends to focus at rodenticide active ingredient makes 20 tonnes
derive data. the ex-manufacturer value, never the service or finished product worth, at times, in excess of
market value. How do you then value these US$100,000.
The same can be said of many professional markets? For example, is the market value of
markets, for example the value of the pest the treated mosquito net market the value sold The above is clearly a solution that can be
control service market when compared to the by the specialists in the vector market or is it adopted and managed by the major industry
office cleaning and washroom hygiene service the pesticide sold by the manufacturer to the players, but what of the smaller players in
markets. The size and fragmentation of the specialist? The manufacturer could choose to sell the industry or those looking to enter? These
market has been a major barrier to improved branded treated nets and increase their value companies are probably the most in need of
availability of market data. Indeed, only one capture. This would not increase the market size, market data to make initial investment and
company, AIS Ltd, has collected data on a regular just the level at which to data is captured. market targeting decisions. These companies
basis since 1992. This is why it remains one of may not have either the global specialists or
the few credible sources of data for the non- Outside the US, data collation becomes more local staff. It is here that market intelligence
crop market, despite the arrival and departure difficult – few companies have the skills, becomes of equal or even more value than the
of agrochemical-focused market research experience and contact network to be able to intrinsic raw data of what actives and brands are
companies over the last 15 years. collect, verify and convert data to a common sold and in what volume.
 December 2007  •  www.agrow.com
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