Un/ted Stares Environmental Protects Agency Pesticides And Toxic Substances (H-7503C) February 1990 xvEPA Pesticides Industry Sales And Usage 1988 Market Estimates ------- PESTICIDE INDUSTRY SALES AND USAGE: 1988 MARKET ESTIMATES ECONOMIC ANALYSIS BRANCH BIODDGICAL AND ECONOMIC ANALYSIS DIVISION OFFICE OF PESTICIDE PROGRAMS ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 DECEMBER 1989 ------- This report provides an overview of the pesticide industry for 1988. It contains a series of tables with estimates of U.S. and world pesticide markets for 1988. The following page presents a number of highlights of this year's report. Economists with the Economic Analysis Branch (EAB) have prepared similar studies in previous years. With the exception of Tables 10 and 11, the figures presented are only approximate values, since available data do not support precise projections. In addition to 1988 estimates, this report includes two new tables which review the pesticide market from 1979 to 1988. Drawn from previous EAB reports, Tables 12 and 13 offer a look at the U.S. pesticide market, in terms of total annual pesticide volume and user expenditures. Two accompanying graphs complement these new tables. OVEKV1KW Overall pesticide industry sales have been relatively stable during recent years. The agricultural share of pesticide usage (see Table 8) appears to have stabilized and may even decline in the coming years after increasing steadily throughout the 1960's and 1970's. A number of factors contribute to this trend: lower application rates due to the introduction of more potent pesticides, more efficient use of pesticides, and lower farm commodity prices. It is not unusual to see maxinum application rates for new agricultural pesticides equal to one to two ounces per acre, whereas application rates for older pesticides oft en reach several pounds per acre. This trend is particularly pronounced in the insecticide market and to a lesser degree in the market for herbicides. Also, the efficiency of pesticide use has improved as a result of more and better certification programs, more widespread use of integrated pest management programs, and the pesticide producers' provision of better information to farmers. Increased interest in Low Input Sustainable Agriculture (LISA) will probably tend to further reduce the quantity of pesticides used in future. Finally, low commodity prices over the past few years have lessened farmers' willingness to apply pesticides. If you have questions regarding this report or need further information, please contact this office. Feel free to contact Jeff Doidge, Economist, at (703) 557-0837 or Arnold Aspelin, Chief of the Economic Analysis Branch, at (703) 557-7600. ------- OF REPORT (table no. in parenthesis) - U.S. ^esticide sa,.'2s represent about one quarter of the world market (1). - Annual U.S. pesticide; user expenditures totalled approximately $7.4 billion in 1988 (2) . - Agriculture accounts :cor over two-thirds of pesticide user expenditures and roughly three-fourti . .-$ of the quantity used annually (2 & 3) . - Herbicides are the leading type of pesticides, in terms of both user expenditures and volumes used (2 & 3) . - About 1.1 billion pen ris active ingredient of conventional pesticides are used in the U.S. (4) - Total U.S. pesticide visage in 1988 approached 2.7 billion pounds of active ingredient. (This figure includes wood preservatives, disinfectants, and sulfu?.. ) (4) - Fanners' expenditures on pesticides represent slightly less than 4% of total farm production e> oenditures (5) . - Total pesticide R & D expenditures represent in the neighborhood of 10% of pesticide expenditure -.3 by user community (6) . - The two most widely v ied pesticides by volvuna axe alachlor ard. atrazine 0). - There were-. il new active ingredients registered under FIFRA in calender 1988 (10). - There are about 1.2 irillion certified pesticide applicators in the U.S. (11). ------- TABLE 1: U.S. and World Market Conventional Pesticide Sales at Basic Producer Level, 1988 Estimates. Herbicides Insecticides Fungicides Other Total U.S. Market ($ Million) 2,770 1,200 580 420 4,970 World Market (%) 56% 24% 12% 8% 100% ($ Million) 7,700 6,100 3,500 1,200 18,500 (%) 42% 33% 19% 6% 100% U.S. % of World Mkt 36% 20% 17% 35% 27% Note: U.S. market is sales for domestic use only, net of imports and exports. Source: EPA estimates based on NACA annual surveys and other sources. ------- TABLE 2: User Expenditures for Conventional Pesticides in the U.S. by Class and Sector. 1988 Estimates Herbicides ( 1 ) Agriculture Ind/Coni/Govt Home & Garden Total (mil $) 3,080 500 350 3,930 (%) 78% 13% 9% 100% Insecticides (2) (mil $) (%) 1,110 440 560 2,110 53% 21% 26% 100% Fungicides (3) (mil $) (%) 550 200 110 860 64% 23% 13% 100% OtherU) (mil $) 370 50 60 480 (%) 77% 10% 13% 100% Total (mil $) 5,110 1,190 1,080 7,380 (%) 69% 16% 15% 100% Source: EPA staff estimates based on NACA annual surveys and other sources. (1) Includes plant growth regulators. (2) Includes miticides and contact nematicides. (3) Does not include wood preservatives. (4) Includes rodenticides, fumigants, and molluscicides, but does not include wood preservatives, disinfectants, and sulfur. ------- TABLE 3: Volume of Conventional Pesticide Active Ingredient Used in U.S. by Class and Sector, 1988 Estimates. Herbicides(l) Agriculture Ind/Com/Govt Home & Garden Total (mil Ibs) 510 120 30 660 Insecticides (2) (%) (mil Its) 77% 18% 5% 100% 185 45 38 268 Funqicides(3) (%) (mil Ibs) 64% 17% 14% 10C"0 80 40 12 132 OtherU) (%) (mil Ibs) (%) 61% 30% 9% 100% 70 0 0 70 100% 0% 0% 100% Total (mil Ubs) 845 205 80 1,130 (%) 75% 18% 7% 100% Source: EPA staff estimates based on NACA annual surveys ana other sources. Ul (1) Includes plant growth regulators. (2) Includes miticides and contact nematicides. (3) Does not include wood preservatives. (4) Includes rodenticides, fumigants, and molluscicides, but does not include wood preservatives, disinfectants, and sulfur. ------- Volume of Pesticide Active Ingredient Used in U.S., by Class and Sector, 1988. Million Lbs. A.I. 800 700 - 600 - 500 - 400 - 300 - 200 100 - Agriculture Ind/Com/Govt 30 38 Home 4 Garden 660 Total Herbicides HJI Insecticides [ I Fungicides lUi Other ------- TABLE 4: Extended U.S. Annual Pesticide Consumption, 1988 Estimates. Type Billion Pounds A.I. Conventional Pesticides 1.1 Wood Preservatives 1.0 Disinfectants 0.4 Sulfur 0.2 Total 2.7 Source: EPA staff estimates. ------- TABLE 5: Importance of Conventional Pesticide Expenditures to U.S. Fanners, 1988 Estimates. ($ bil) (%) Farm Pesticide Expenditures(1) 5.1 3.9 Total Farm Production Expenditures(2) 132.0 100.0 (1) Excludes wood preservatives, disinfectants, and sulfur. (2) USDA, 1989. Source: USDA and EPA staff estimates. ------- TABLE 6: Comparison of the Cost of EPA Data Requirements Relative to Conventional Pesticide User Expenditures in U.S. 1987 Estimates(1) Pesticide User Expenditures Total Pesticide R&J Expenditures EPA Registration-Related R&D Expenditures $ Million 6,850 682 173 Percent 100.0 10.0 2.5 Source: EPA staff estimates, based on Agricultural Statistics, 1986 (USDA), the NACA survey (1987), and other sources. (1) Re-estimated for 1987 based on data from NACA member firms only. R&D figures for 1988 are not available. ------- TABLE 7: U.S. Pesticide Production and User Sectors—Key Profile Parameters, 1988.(1) (Approximate Values) Basic Production Level Marketing Level User Level 30 Major Basic Producers 3,300 Formula-tors 0.8-1.0 M. Farms 100 Other Producers 29,000 Distributors 90,000,000 Households & Establishments 40,000 Commercial Pest Control Firms 1,200 Active Ingredients 37,000 Formulated Products (Several Other Industry/ Registered Registered at Fed- million) Government Users eral Level 850 Active Ingredients in Production 200 Leading Active Ingredients in Proc uction 11 New Active Ingre- dients/Calender Year 11,000 Employment 200 Firms Registering Pesticides per Year U.S. Production U.S. Exports U.S. Imports U.S. Supply Market (bil Ibs) 1.43 Domestic Usage 0.45 0.15 1.13 (bil Ibs) 1.13 Value of U.S. Purchases (bil $) 7.38 Value of Sales Agricultural Share (bil $) Ind/Com/Gcvt Share 4.97 Home/Garden Share 75% Agricultural Share 18% Ind/Com/Govt Share 7% Home/Garden Share 69% 16% 15% Source: EPA staff estimates. (1) Estimates for registered active ingredients and products varied little from 1987 to 1988. However, due to FIFRA '88, some of the above figures will change significantly in 1989. 10 ------- TABLE 8: United States Conventional Pesticide Usage, Total and Estiinated Agricultural Sector Share for 1964-1988 Year 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 Total U.S. Ml 1 1 i r-in T Ht^ " i"i I ' ' 1 "I" JLOS. 540 610 680 735 835 775 740 835 875 910 950 990 1,030 1,075 1,110 1,150 1,175 1,205 1,100 953 1,080 1,112 1,096 1,085 1,130 Agricultural Sector M-- 320 335 350 380 470 430 430 495 525 560 590 625 660 720 780 840 846 860 880 733 850 861 820 815 845 Agricultural Sector Share •ptoTTV»T> tercen 59 55 51 52 56 55 58 59 60 62 62 63 64 67 70 73 72 71 80 77 79 77 75 75 75 Note: Excludes wood preservatives, disinfectants, and sulfur. Source: EPA staff estimates. 11 ------- r-o U.S. Pesticide Usage, Total and Agricultural Share, 1964-1988. Millions Lbs. A.I. 1400 1200 1000 800 600 400 200 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Year Total U.S. HH Agricultural ------- TABLE 9: Annual Usage Estimates of the Largest Agricultural Pesticides in U.S. 1 (approximate values, 1987) Pesticide Usage in Million Pounds Active Ingredient Alachlor 75 - 100 Atrazine 75 - 100 2,4-D 52 - 67 Butylate 44 - 58 Metolachlor 45 - 55 Trifluralin 30 - 35 Cyanazine 20 - 25 Carbaryl 12 - 25 Malathion 15 - 20 Metribuzin 13 - 17 Maneb/Mancozeb (4-6/8-12) 12-18 Glyphosate 10 - 15 Captan 9-11 Chlorpyrifos 7-11 Methyl Parathion 2 5-10 Source: EPA staff estimates based on a variety of sources. 1 The estimates represent all usage of the active ingredient including noncrop usage. 2 Hie estimate does not include the estimated 4 -7 mil. pounds of ethal parathion usage. 13 ------- TABLE 10: Number of Chemicals Registered for First Time as Pesticides Under FIFRA, by Type, Calender Years 1967-1988 Year Insecticide 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 4 6 7 1 0 4 5 6 8 2 1 2 8 4 4 5 5 6 8 2 3 2 Herbicide Fungicide 2 2 4 2 1 5 3 8 11 3 1 2 2 3 3 5 5 1 1 7 5 5 2 5 0 2 1 6 4 6 5 2 0 0 4 1 2 1 3 2 1 0 0 1 Type Bactericide/ Slimicide 5 4 2 3 1 5 2 0 11 4 1 0 0 0 1 1 1 2 1 0 1 0 Nematicide Rodenticide 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 2 0 0 0 1 o 0 1 0 0 0 0 1 2 0 2 0 1 0 0 0 0 Total Uses Total Chemicals Other Registered Registered 1 1 1 2 1 1 0 0 1 1 0 1 2 1 6 3 0 2 2 2 2 2 16 18 14 10 5 21 15 22 36 12 3 5 17 11 16 17 14 14 13 12 12 11 16 18 14 10 4 17 13 22 35 12 3 5 17 11 16 17 14 13 10 11 11 11 Source: EPA registration files. ------- Number of Chemicals Registered Annually, 1967-1988. Number 40 35 30 25 20 15 10 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 11 ------- TABLE 11: Number of Certified Applicators in the United States, 1988 Estimates(1). EPA Region I II III IV V VI VII VIII IX X U. S.(4) Private (2) 7,797 19,377 52,344 248,582 147,784 227,187 144,707 63,367 31,483 50,292 992,920 Commercial (3) 7,529 31,995 18,268 40,724 41,739 28,895 23,053 14,073 21,011 26^787 254,074 Source: EPA staff estimates. (1)-The following page presents a map of EPA regions. (2) Private refers primarily to individual farmers. (3) Commercial refers to professional pesticide applicators. (4) These estimates reflect some double counting, as some applicators are certified in ..more than one state. 16 ------- EPA Regional Offices Regions 4 —Alabama 10 —Alaska 0 —Arizona 6 —Arkansas 9—California 8 —Colorado 1 — Connecticut 3 —Delaware 3—O.C. 4—Florida 4 —Georgia 9—Hawaii 10—Idaho 5—Illinois 5—Indiana 7 — Iowa 7 —Kansas 4— Kentucky 6 —Louisiana Regions 1 —Maine 3—Maryland 1 —Massachusetts 5 —Michigan 5 —Minnesota 4—Mississippi 7—Missouri 8 — Montana 7—Nebraska 9—Nevada 1 —New Hampshire 2 —New Jersey 8 —New Mexico 2 — New York 4 — North Carolina 8 —North Dakota 5—Ohio 8 —Oklahoma 10 —Oregon Regions 3 —Pennsylvania 1 —Rhode Island 4 —South Carolina 8 —South Dakota 4 —Tennessee 8 —Texas 8—Utah 1 —Vermont 3—Virginia 10 —Washington 3 — Weal Virginia 5 —Wisconsin 8 —Wyoming 9 —American Samoa 9 — Guam 2 —Puerto Rico 2 —Virgin Islands 17 ------- oo TABLE 12: U.S. Annual Volume of Pesticide Usage, by Type, 1979-1988. Pesticide Type Herbicides Insecticides Fungicides Other Total 1979 560 378 106 106 1,150 1980 555 395 120 105 1,175 1981 570 405 123 107 1,205 1982 1 I'LL i lions 544 391 119 106 1,160 983 /-\-f OI 575 255 68 55 953 1984 T >-,£? TV T LiDS. A. 1 . 675 270 80 55 1,080 1985 670 300 82 60 1,112 1986 655 295 86 60 1,096 1987 645 260 122 60 1,087 1988 660 268 132 70 1,130 Source: EPA reports for years indicated. ------- U.S. Annual Volume Usage, by Pesticide Type, 1979-1988. Millions Lbs. A.I. 1400 1200 1000 sod 600 400 200 -e- -£] 1979 1980 1981 1982 1983 1984 1985 1988 1987 1988 Year Herbicides ~4~ Insecticides -rff- Fungicides -Q- Other Total ------- TABLE 13: U.S. Annual User Expenditures on Pesticides, by Type, 1979-1988. Pesticide Type Herbicides Insecticides Fungicides Other Total 1979 2,830 1,370 425 425 5,050 1980 3,100 1,600 520 580 5,800 1981 3,500 1,700 620 650 6,470 1982 3,500 1,700 620 650 6,470 1983 f.f-i 1 1 T f rill 11C 3,600 1,800 450 200 6,050 1984 )ns of $ — 4,260 1,880 428 215 6,783 1985 3,700 1,975 515 370 6,560 1986 3,625 1,980 515 370 6,490 1987 3,745 1,990 730 385 6,850 1988 3,930 2,110 860 480 7,380 Source: EPA reports for years indicated. ------- Millions of $ 8,000 7,000 6,000 5,000 4,000 3.000 2,000 1,000 - U.S. Annual User Expenditures, by Pesticide Type, 1979-1988. 1979 1980 1981 1982 1963 1984 1986 1987 1988 Herbicides Insecticides -£- Fungicides -B~ Other -X- Total ------- |