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Spray Feb 2015

organic products work better. One in five households is purchasing with the environment in mind. U.S. consumers are purchasing fewer household insecticides. Data from market research firm Kline shows that 55% of respondents purchased a household insecticide (HHI) in 2001; by 2011, that number had shrunk to just 40%. Aerosols happen to be the largest form in HHI, accounting for 38% of total dollars. So the macro consumer trend for fewer, more environmentally friendly chemicals is a huge challenge. Meteorological Environment Obviously, the weather plays a major role in how much insect pressure there is from year to year. Warm and moist is good for bugs. Unfortunately, for the household insect control industry, the last two springs started late across much of the U.S. Combine these late springs with drought in California and much of the southwest, and one can say that Mother Nature has not been kind to this industry. Future of Aerosol Insecticides The aerosol insecticide industry is certainly not without its challenges. So, what does the future hold and how will these challenges be met? The evolving consumer environment is perhaps the most important consideration as we look to future aerosol opportunities and industry health. Meeting unmet consumer needs is a must. There is an opportunity for manufacturers to target new aerosol products and formulations that appeal to the unique consumer segments and the problems they are trying to solve. MGK research indicates that some of the unmet needs include safety for pets and children. Going forward, our industry needs to better anticipate consumer questions and create more meaningful ways to communicate factual information to the end-users of our products to satisfy the consumer desire for more information. Another way to address the future is to make aerosols relevant in traditional non-aerosol segments. Kline data indicates that aerosols are a small form in Lawn & Garden (L&G) accounting for only 8% of total dollars. Addressing secondary consumer needs, such as incorporating visual cues in aerosols, can be a bigger part of growing the outdoor insecticide market. Utilizing bag-on-valve (BOV) technology in growing market segments such as baits is another way to increase aerosol usage. Bed bugs are not going away and will likely become more prevalent over time due to the ability of these insects to develop resistance to specific insecticides. Developing differentiated solutions to combat resistance will be vital going forward. According to Mintel, nearly one in four households already uses preventive pest control products. Responding to this preventive approach by applying it to pests like bed bugs and uses like outdoor deck and patio spatial repellency is another opportunity to grow the market by satisfying consumer needs. While the current business environment for insecticide aerosols is certainly challenging, industry experts are working on paths to generate growth for the future. By rallying together manufacturers, formulators, fillers, marketers, retailers and regulators, we can find a way to make life healthier by creating responsible products that protect people and their environments from the impact of insects. Spray Sources: • Kline Consumer Markets for Pesticides and Fertilizers 2012: U.S. Market Analysis and Opportunities • MGK Consumer Survey November 2013 • Mintel 1,518 Internet users age 18+ who bought pest control products in last year • National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA) 2013-2014 Honey Report • National Oceanic and Atmospheric Administration (NOAA) U.S. Department of Commerce February 2015 Spray 33


Spray Feb 2015
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