by Shane Henson — March 1, 2013—A new report from business services consulting firm Apex Insight on the U.K. pest control market shows ongoing growth through the recession and strong performance by some of the commercial pest control operators, but significant scaling back of the services offered by local authorities.
Per the report, U.K. Pest Control: Market Insight Report, the total value of the U.K. market is now approaching £350 million, having grown despite the economic downturn. The study shows that growth has been driven by overall increases in the numbers of premises—such as food-processing sites, grocery stores, hotels, restaurants and residential blocks—which must be kept free of pests, as well as increased uptake of pest control contracts and trends towards higher service levels.
Growth is not uniform across these areas, the report explains. More hotels, residential blocks and local grocery stores are being built, but significant numbers of pubs are closing. Furthermore, while people are eating more processed food, the current horse-meat scandal illustrates the international nature of the food industry with an increasing level of work—and hence pest control activity—now being carried out at production sites located outside the U.K.
The report points out that demand for pest control is not directly proportional to the number of pests. In the business-to-business segment, which accounts for four-fifths of the market, there is a strong insurance element to the purchase to ensure not only that premises are kept pest-free, but that best practice processes have been followed. Consumer pest control tends to be more reactive to outbreaks but there is evidence that, in the recession, some consumers are resorting to a do-it-yourself approach to save money, the report explains. In part, this is because the traditional first calling points of consumers, local authority pest control services, are being scaled back significantly as councils try to cut costs to meet government spending objectives.
According to the report, another interesting supply trend is the bundling of pest control with other facilities services. The study finds that some customers are keen on this concept, while others are firmly in favor of single-service specialists, and that it may have implications for industry pricing and margins.
