Generics Infiltrating Turf and Ornamentals Market

Marketers of pesticides and fertilizers have always focused on vying against competing brands for share in the lucrative turf and ornamental plant markets, but the competitive landscape is now changing. The growing presence of generic products in this traditionally branded sector is beginning to represent a significant threat to some branded products, and a proposed market study by Kline & Company titled Professional Turf & Ornamental Markets for Pesticides & Fertilizers USA 2007, the 18th edition of this title, will examine the possible short-term and long-term effects of this trend.

“In recent years, established brands have been facing patent expirations, opening the market to generic competitors, usually second tier companies using price to pick up share,” says Dennis Fugate, manager of the Specialty Pesticides practice for Kline’s research division.

“To determine the impact of this development, we’re adding a separate section to our report looking at generic penetration into historically branded segments such as Roundup, Merit and Daconil. Our research will estimate the market shares of major brands of generic glyphosate, chlorothalonil, imidacloprid and others as patents expire in the future,” he adds.

A continuing construction boom has sustained a moderate level of growth in most sectors of the turf and ornamentals industry, and until 2002, U.S. golfers seemed to play more golf each year, helping to fuel the $1.3 billion manufacturers level T&O chemical market. However, housing construction is cooling and rounds of golf played have been declining in recent years and that combination may lead to a flattening of the chemical market. “In fact, if lower-priced generics continue to penetrate the market, pesticide values could actually decline in some sectors," says Mancer J. Cyr, senior associate for Kline’s Specialty Pesticides consulting practice. “It’s a competitive marketplace that will become more competitive as patents continue to expire.”

“Pesticide companies must consider reevaluating how they will maintain their competitive edge or risk losing market share,” he adds.

Professional Turf & Ornamental Markets for Pesticides & Fertilizers USA 2007 will examine the use and sale of fertilizers, herbicides, insecticides, fungicides, plant growth regulators, aquatic herbicides and nematicides to the golf courses; schools, parks, and cemeteries; nurseries and greenhouses; lawn care operators; landscape contractors and turf farms segments of the U.S. market.

For more information on this study, go to www.klinegroup.com/x45v.htm.

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