1998-1999 Pesticide Market Estimates: Sales

2.1  World and U.S. Pesticide Expenditures

World pesticide expenditures totaled more than $33.5 billion in 1998 and 1999 (see Table 2.1). Expenditures on herbicides accounted for the largest proportion of total expenditures (more than 40%), followed by expenditures on insecticides, fungicides, and other pesticides, respectively. Total expenditures were up slightly in 1999 due to increased spending on insecticides, fungicides, and other pesticides.

U.S. pesticide expenditures totaled more than $11 billion in 1998 and 1999, in proportions similar to that for world expenditures, with a relatively larger proportion of total U.S. expenditures on herbicides (see Figure 2.1). U.S. expenditures accounted for approximately 33% of total world expenditures on pesticides, more than 40% of world expenditures on herbicides, 33% of world expenditures on insecticides, and more than 10% and 25% of world expenditures on fungicides and other pesticides, respectively.² The Agency based its estimates of world and U.S. pesticide expenditures on the estimated pesticide expenditures and estimated changes in pesticide expenditures by type derived from public and proprietary EPA databases. See Section 2.3 for a more detailed look at U.S. expenditures on pesticides in 1998 and 1999.

2.2  Value of U.S. Pesticides: Producers

Table 2.2 summarizes the 1998 and 1999 average U.S. value of pesticides at the producer level, including production, import, export, and supply (total and net). Pesticide sales related to U.S. production and consumption of pesticides comprised $9.6 billion of domestic production, $1.0 billion of imports, $1.8 billion of exports, and $8.8 billion of net supply at the producer level.

2.3  U.S. Pesticide Expenditures: Users

U.S. expenditures at the user level on conventional and other pesticides totaled more than $11 billion in both 1998 and 1999 (see Table 2.3). The conventional and other pesticides comprising the expenditure estimates include herbicides, insecticides, fungicides, nematicides, fumigants, sulfur, petroleum oil, and others. The estimates exclude expenditures on specialty biocides, wood preservatives, and chlorine/hypochlorites.

Reductions in spending in the agricultural sector on all pesticides, except other, more than offset increases in spending in the non-agricultural sectors in 1999, resulting in a decline in total 1999 expenditures. Expenditures in the agriculture sector accounted for more than two-thirds of total expenditures in both years. Herbicide expenditures dominated in all sectors except the home and garden sector, where insecticides comprise nearly 60% of all expenditures (see Figure 2.2). The estimated expenditures rely on the estimated changes in pesticide expenditures by sector and type provided in public and proprietary EPA databases.

2.4  U.S. Pesticide and Farm Expenditures

Pesticides form an important component of total farm expenditures and are integral to farm budgeting and management. U.S. pesticide expenditures in 1998 and 1999 totaled 4.4% and 4.0% of total farm expenditures, respectively (see Table 2.4). Total farm expenditures increased slightly in 1999 while pesticide expenditures declined. Total farm expenditures are based on USDA estimates and pesticide expenditures from Table 2.3.