Pest Control - US - February 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• It' s all about where you live
• Competitive context
• EPA regulations to shift rodenticide revenue from retail products to professional services
• Consolidation to continue
• Environmental tide may have turned
• Segment performance--Pest control services
• Short-term problems; long-term growth assured
• Consistent growth among national and regional players
• Organic/environmentally-friendly products on the rise--will gain traction
• Termidor: too good to be true
• Segment performance--FDM pest control products
• Retail product forecast/predictions
• Retail product innovation sparks life into segment
• SC Johnson firmly ensconced as FDM sales leader--product portfolio strong supermarket match
• SC Johnson innovations offer product diversity, new revenue potential:
• Woodstream shows how to boost margins with premium products
• Retail channels
• Wal-Mart in the lead--to grow share based on one-stop shopping, lower-income skew
• Home improvement pest control sales to feel housing slowdown
• Convenient pest control pickup to stabilize future supermarket sales
• The Consumer
• Gardening Baby Boomers to the rescue
• Pest control services and product usage
• Usage by pest type
• Frequency of use
• How pest control service is chosen
• Why pest control service is chosen
• Market Size and Forecast
• Pest control services face near-term hurdles, long-term growth
• Pest control products to keep pace on heels of innovation
• Revenue summary
  • Figure 1: Total U.S. sales and forecast of pest control services and retail products, in current prices, 2002-12Figure 2: Total U.S. sales and forecast of pest control services and retail products, in constant prices, 2002-12
• Competitive Context
• EPA regulations to shift rodenticide revenue from retail products to professional services
• Consolidation to continue
• Efficacy over environment
• Segment Performance
• Key points
• Cost/benefit analysis: expense, safety, trust, and efficacy affect each segment differently
  • Figure 3: U.S. sales and forecast of pest control services and retail products, by segment, 2002-12
  • Figure 4: U.S. sales of pest control services and retail products, by segment, 2005 and 2007
• Segment Performance--Pest Control Services
• Key points
• Short-term problems; long-term growth assured
  • Figure 5: U.S. sales of pest control services, 2002-12
• Segment Performance--FDM Pest Control Products
• Key points
• Retail product innovation sparks life into segment
• Environmental sprays lag; devices lead
  • Figure 6: FDM sales of pest control retail products, by product type, 2003 and 2005
• Retail Channels
• Key points
• Channel product selection may influence pest control purchase decision
• Broader retail market reflects consistent need
  • Figure 7: U.S. sales of retail pest control products, by retail channel, 2005 and 2007
• Retail Channels--Other
• Key points
• Wal-Mart to grow share based on one-stop shopping, lower-income skew
• Home improvement pest control sales to feel housing slowdown
  • Figure 8: U.S. sales of retail pest control products at other channels, 2002-07
• Retail Channels--Supermarkets
• Key points
• Convenient pest control pickup to stabilize future sales
• Pest control products viewed as "least hazardous" have best sales opportunity
  • Figure 9: U.S. sales of retail pest control products at other channels, 2002-07
• Market Drivers
• Biology and weather a drain on termite revenue
• Steep drop in new housing sales saps pre-treatment revenue
  • Figure 10: New houses sold in the U.S., 2004-07
• It' s all about where you live
  • Figure 11: Usage of pest control services and products, by region, December 2007
  • Figure 12: Commercial and residential pest control services sales per capita, by state, 2002Figure 13: Interim projections: Percent change in population by region of the United States, 2000-30
• Gardening Baby Boomers to the rescue
  • Figure 14: Gardening activity by age, 2003, 2005, and 2007Figure 15: Use of pesticides, gardeners, 2007
  • Figure 16: U.S. population and projections and usage of antiperspirant and deodorant, by age, 2002-12
• West Nile Virus: no laughing matter--and a revenue driver
  • Figure 17: West Nile Virus human disease cases, by state, 2007
• Leading Pest Control Service Providers
• Consistent growth among national and regional players
  • Figure 18: Sales of leading residential pest control service providers, 2005 and 2007*
• Pest Control Service Provider Analysis: National Players
• Key points
• Pre-treatment declines to weigh on Terminix
• Orkin' s enhanced commercial focus give company momentum
  • Figure 19: Sales of Terminix and Orkin, 2005 and 2007
• Pest Control Service Provider Analysis: Regional Players
• Key points
• Strong growth buoyed by acquisitions; consolidation to boost future sales
• Southeast is regional hub--to benefit from population growth
  • Figure 20: Sales of "top eight" regional independent residential pest control service providers, 2005 and 2007
• Leading FDM Pest Control Product Companies
• Key points
• SC Johnson firmly ensconced as FDM sales leader--product portfolio strong supermarket match
• Spectrum
  • Figure 21: FDM sales of leading pest control product companies, 2006 and 2007
• FDM Pest Control Product Brand Share--Outdoor
• Key points
• Movement toward contactless products afoot?
• SC Johnson innovations offer product diversity, new revenue potential
  • Figure 22: FDM brand sales of outdoor pest control products in the U.S., 2006 and 2007
• FDM Pest Control Product Brand Share--Devices
• Key points
• Rodenticide playing field to get regulatory shake-up
• Woodstream shows how to boost margins with premium products
  • Figure 23: FDM brand sales of pest control devices in the U.S., 2006 and 2007
• FDM Pest Control Product Brand Share--Multipurpose
• Key points
• Raid' s multi-purpose pest killer/germ fighter a product to watch
• Raid Earth Options suggests that plant-based products have a way to go
  • Figure 24: FDM brand sales of multipurpose pest control products in the U.S., 2006 and 2007
• FDM Pest Control Product Brand Share--Indoor
• Product odor control important
  • Figure 25: FDM brand sales of indoor pest control products in the U.S., 2006 and 2007
• Brand Qualities
• Truly Nolen brand differentiates itself by melding visual imagery with family-friendly message
  • Figure 26: Truly Nolen "mouse car," 2007
• Innovation and Innovators
• Retail pest control products
• Retail product forecast/predictions
• Convenience is no longer king
• Botanical/herbal becomes top claim
• Environmentally-friendly claims increase--but bets are hedged on efficacy
• Fragrance-free and fresh scents
• Refills still strong and a new format is introduced
• Woodstream premium electronic traps and sonic repellents increase margins
• SC Johnson melds convenience and environment with candle introductions
• Pest control services
• Organic/environmentally-friendly products on the rise--will gain traction
• Termidor: too good to be true
• Advertising and Promotion
• Overview
• d-Con
  • Figure 27: d-Con baits, 2007
• Off!
  • Figure 28: Off! Smooth & Dry, 2007
• Orkin
  • Figure 29: Orkin termite proposal, 2007
• Pest Control Services and Product Usage
  • Figure 30: Usage of pest control services and products, December 2007
  • Figure 31: Usage of pest control services and products, by HH income, December 2007Figure 32: Usage of pest control services and products, by homeowners and renters, December 2007
• Frequency of Use
  • Figure 33: Volume use of pest control products, by age, December 2007
  • Figure 34: Volume use of pest control products, by age, December 2007
• Retail Brand Penetration
  • Figure 35: Use of insecticide brands, 2003, 2005, and 2007
• Purchase Preferences
  • Figure 36: Pest control Product retail channel preferences, by region, December 2007
  • Figure 37: Pest control Product retail channel preferences, by income, December 2007
• Pest Control Product and Service Use by Pest Type
  • Figure 38: Pest control product and service use, by pest type, December 2007
• Pest control product use by pest type
  • Figure 39: Pest control product use by pest type, by HH income, December 2007
• Pest control service use by pest type
  • Figure 40: Pest control service use by pest type, by HH iincome, December 2007
• How and Why Pest Control Service Chosen
• How pest control service is chosen
  • Figure 41: How last pest control professional was chosen, December 2007
  • Figure 42: How last pest control professional was chosen, by age, December 2007
• Why pest control service is chosen
  • Figure 43: Why last pest control professional was chosen, December 2007
  • Figure 44: Why last pest control professional was chosen, by age, December 2007
  • Figure 45: Why last pest control professional was chosen, by HH income, December 2007Figure 46: Why last pest control professional was chosen, parent w/child in home, December 2007
  • Figure 47: Why last pest control professional was chosen, rent versus own, December 2007
• Demographic Focus: Region
  • Figure 48: Usage of pest control services and products, by region, December 2007
• Pest control products
  • Figure 49: Pest control product use by pest type, by region, December 2007
• How last pest control professional was chosen
  • Figure 50: How last pest control professional was chosen, by region, December 2007
• Why last pest control professional was chosen
  • Figure 51: Why last pest control professional was chosen, by region, December 2007
• Custom Consumer Groups: Asthma, Health and Killing Pests Dead
  • Figure 52: Asthma, health, and killing pests dead, December 2007
• Unique services and education for asthma sufferers
  • Figure 53: Usage of pest control services and electronic devices, by asthma sufferers, December 2007
  • Figure 54: How and why pest control professional used, by asthma sufferers, December 2007
• Pest control business is better if you think pests are unhealthy
  • Figure 55: Usage of pest control services and products, by pest health perception, December 2007
  • Figure 56: How and why pest control professional used, by pest health perception, December 2007
• Industry backbone: those who want to kill ' em dead
  • Figure 57: Usage of pest control services and products, by gender, December 2007
• Appendix: Other Useful Consumer Tables
• Usage
  • Figure 58: Usage of pest control services and products, by gender, December 2007
  • Figure 59: Usage of pest control services and products, by age, December 2007
• Frequency of use
  • Figure 60: Volume use of pest control products, by HH income, December 2007
• Brand preferences
  • Figure 61: Use of insecticide brands, by region, May 2006-June 2007
• Purchase preferences
  • Figure 62: Pest control product retail channel preferences, by gender, December 2007
  • Figure 63: Pest control product retail channel preferences, by age, December 2007
  • Figure 64: Pest control product retail channel preferences, by age, December 2007
• Pest control product use by pest type
  • Figure 65: Pest control product use by pest type, by age, December 2007
• Pest control service use by pest type
  • Figure 66: Pest control service use by pest type, by age, December 2007
  • Figure 67: Pest control service use by pest type, by region, December 2007
• How pest control service is chosen
  • Figure 68: How last pest control professional was chosen, by HH income, December 2007
• Why pest control service is chosen
  • Figure 69: Why last pest control professional was chosen, by gender, December 2007
• Appendix: Trade Associations