SPC Releases 2012 Pest Control Market Research Report

MENDHAM, N.J. — The U.S. structural pest control industry generated an estimated $6.815 billion in total service revenue in 2012, a 4.5 increase from the $6.524 billion measured in 2011. The top three U.S. service providers, Orkin, Terminix, and Ecolab, represented 40.4% of the total industry revenue for the termite and general pest market segments this past year.

Service revenue derived from controlling bed bugs declined two percent from the prior year, bringing the total revenue earned to $401 million. Single family homes and apartments were the primary leading types of accounts pest control operators treated for bed bugs. Nearly one-third of those servicing accounts for bed bugs report employing a monitoring device as part of their service. Nationwide, PCOs reported an average charge for a bed bug treatment of $587.00, down 2.2 percent from the prior year. The average charge was highest in the Northeast and lowest in the West region. The median charge nationwide was $500.00 for a bed bug treatment.

Nationwide, pest control operators reported good growth in both residential (+6.8%) and commercial (+2.9%) service revenue over the prior year. Total service revenue generated from termite work, including renewal fees, was up 1.5 percent from that measured in the 2011 market study. Nearly 38% of the pest control operators surveyed reported using social media to advertise and promote their pest control business. Facebook, LinkedIn, Twitter, and YouTube were the leading social media platforms respondents used. Total manufacturer level revenue increased 5.9 percent this past year to nearly $500 million. This is the third year of manufacturer level sales growth, following the 2007-2009 recession. Manufacturers experienced an extraordinary increase in sales of insecticides which was attributed to the mild winter weather in 2012. Sales of termiticides were down as a result of generic price pressure on the fipronil products. More than 800 owners or managers of pest control companies were interviewed for this study. The market report forecasts pest control service revenue through 2014 and corresponding pesticide product category sales through 2017. The impact of the commercial and residential real estate market, mosquito and wildlife management services, changes in distribution, and pest control operators’ expectations for 2013 are just a few of the topics analyzed in this year’s report. For more information visit http://www.spcresearch.com/.