About this report
This report reviews the UK pest control market. It quantifies the market size and historical growth rates, probes key factors behind these figures and explores segmentation of the market and drivers of profitability.
It also carries out an in-depth analysis of the relevant drivers of industry growth – in particular the macroeconomic environment and factors which determine volume and price for pest control work – setting out historical trends and forecasts.
Key trends in recent years have included changes in regulation, working practices and supply structure. In particular, there have been significant changes in local authority pest control provision.
We believe that, in order for those involved in the market to make the best decisions in this complex and changing environment, they need to have access to the best information and understanding of the trends and drivers. The aim of this report is to provide this.
– Quantification of market size and historical growth rate
– Summary of market trends
– Analysis of the performance of leading pest control service providers
– Market and driver forecasts
It is intended for pest control companies themselves, as well as investors, banks, analysts, consultants and other parties with interests in the sector.
What are the sources and methodology?
This report is based on
– Publicly available data including company annual reports, websites, press releases and government statistics
– Interviews with service providers, customers and pest control market experts
– In-depth analysis of the macroeconomic environment and relevant market drivers
– Our own experience of advising companies and investors involved in the pest control and facilities management industries, both in the UK and elsewhere in Europe
Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
Pest control market growth and drivers
The total value of the UK pest control market is now over £400m.
The market has grown from both increases in volume – driven by increase in the number of relevant premises, greater uptake of pest control contracts and trends towards higher service levels – and price
The chart shows how pest call-outs by local authorities segment by type of pest. It confirms that the main types of pest encountered in the UK are rodents (eg rats and mice), flying insects (wasps, moths, mosquitoes), crawling insects, (fleas, cockroaches, ants, bedbugs) and birds (pigeons).
Key industry issues
Key value drivers include sales capability, customer retention, success in selling on higher service levels, increasing technician productivity and optimising business mix. The leading companies have launched initiatives across these areas.
Entry barriers to local pest control are relatively low with a history of new operators being set up by workers who have learned their trade while either working for a local authority or one of the large companies.
Market and segment entry barriers include accreditation – where a national register of pest control technicians has been created – and having the necessary scale to service national accounts
There is some evidence of both bundling of contracts with other FM services and in-sourcing of pest control by large companies.
Pest control is a relatively labour intensive business with technician salaries in the region of £14-25,000.
Rentokil remains the market leader, and is the best known brand amongst consumers, with a handful of other operators having the scale to provide a national service and many smaller providers, some of whom operate as part of franchise networks.
Other leading operators include Ecolab and MITIE.
Local councils have historically been significant providers of pest control services
– Many are reviewing their provision to meet government spending reduction targets with some having already taken the decision to either contract out provision of their services or withdraw them entirely.
– Numbers of local authority pest control officers are significantly lower than a decade ago.
Forecast growth in the numbers of restaurants and hotels is likely to increase demand for pest control, as is the change in mix towards chains – who are more likely to have full-service contracts than independents. However, other trends such as closure of pubs and the shift of shopping from the high street to the internet are less favourable for the industry.
A key area for uncertainty is Brexit, given the role that EU legislation plays in regulating the industry, and the potential knock-on impact of lower economic growth.