Author: Mintel Group Ltd.
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Pest Control and Repellents: Incl Impact of COVID-19 - US - August 2020
Overview
 
What you need to know 
The $12.2 billion pest control market has seen consistent growth in recent years – a trend that’s expected to continue through the COVID-19 outbreak, particularly as consumers deepen their investments in home maintenance and improvement. Pre-pandemic, sales significantly benefited from the gradual addition of natural pest control products; however, increased focus on the balance between ingredient safety and efficacy indicates that natural claims alone won’t be enough to sustain the category. 

The future of the market will see an increased focus on ecommerce capabilities for sales and customer engagement, as well as disruptive product innovations (eg new formats, cross-category launches); long-term growth will come from the continued evolution of holistic, effective products, supported by demonstrable scientific research. 

Key issues covered in this Report
●	The impact of COVID-19 on consumer behavior and the pest control market
●	Pest control’s recessionary resilience
●	eCommerce opportunities in the pest control category
●	Balancing safety and science in product formulations

Definition 
The following are included in the scope of this Report: 

●	At-home pest control products: outdoor pest control products, indoor pest control products, pest control devices, personal insect repellents, and multipurpose pest control products
●	Professional pest control services (limited to those provided to residences.) Services for businesses, commercial real estate, government, etc. are excluded.

COVID-19: Market context
This Report was written August-September 2020. 

The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic, and on March 13, President Trump declared a national emergency in the US. 

Across the US, state-level stay-at-home orders rolled out throughout the months of March and April remaining in place through May, and in some cases June. During this time (referred to as lockdown) non-essential businesses and school districts across the nation closed or shifted to remote operations. Neither the top at-home pest control retailers (eg home improvement stores, mass merchandisers), nor professional pest control providers were impacted by business closures. 

During re-emergence, all 50 states have relaxed stay-at-home orders and allowed businesses to operate with varying levels of social distancing measures in place. The continued spread of COVID-19 infections has driven some states to slow down or reverse course on reopening plans; international borders remain largely closed to US travellers, which may have a longer-term impact on pest control services in particular. Reduced air travel and hotel stays will slow the spread of highly transferrable pests (eg bed bugs, fleas), reducing the need for professional intervention. Mintel anticipates the US will remain in a state of flux through 2021, until a vaccine is available.

Economic and other assumptions
The essential nature of the pest management industry means that demand remains largely inelastic in the face of financial uncertainty. That said, cautious recessionary spending habits are being met with travel restrictions and public health concerns, which may impact consumers’ purchasing decisions. 

This Report considers the following economic factors and the expected patterns in the years ahead:

●	Unemployment is projected to peak at over 14% percent in the third quarter of 2020; as output increases in the second half of 2020 and throughout 2021, the unemployment rate is expected to fall
●	PCE will rest at an average of -4.8% in 2020, before returning to pre-pandemic patterns in 2021
●	As of August 2020, consumer confidence was 74.1 – up 2.3% from April 2020, yet down 4.0% from June 2020. – and it will continue to improve through the end of the year

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