February 1, 2021
Research shows there has never been a better time to start a pest control business. Today's post reviews pest control industry growth estimates, trends, and revenue forecasts between 2020 and 2025.
Pest Control Industry Growth Estimates For 2020-2025
Last year, the National Pest Management Association's 2019 Fact Sheet provided the following snapshot of the pest control industry:
- 19,295 different pest control companies
- 142,320 service technicians working across the country
- More than $9.3 billion in annual billing revenue, representing a 4.3% increased from the 8.971-billion measured in 2018
According to a new report by Specialty Consultants, the U.S. structural pest control market is on track to reach $10 billion by year's end, consistent with the Compound Annual Growth Rate (CAGR) predictions of 4.4% made in early 2019. Despite the economic pressures of the pandemic, industry earnings were boosted by mild summer and winter weather, increased insect pest and rodent populations, and expanded service offerings for public health pests like mosquitoes.
The future of the industry is bright, too. According to a new report by Fortune Business Insights, the global pest control industry will reach $31.94-billion in revenue by 2027. This is consistent with Market Watch findings, which predict the value of the global pest control market at $27.5-billion USD by 2025.
Pest Control Industry Trends For 2020-2021
In addition to rapidly multiplying pest populations, the following trends support pest control business profitability in 2020 and beyond:
Demand For House Pests And Vector Health Controls Increasing During Pandemic
As the general public becomes more health-conscious, the demand for vector health controls, which involve the elimination of pests that transmit disease pathogens, increases. At the same time, shelter-in-place orders have placed house pest problems at the forefront of people's minds, as Americans are forced to share space with unwelcome guests they might not have seen otherwise.
Pest Control Businesses Enjoy Recurring Revenue From Repeat Customers
One of the most exciting trends for pest control business owners has been the surge of recurring revenue from repeat customers. According to a Specialty Consultants report titled "A Strategic Analysis of the U.S. Structural Pest Control Industry," repeat customers accounted for a whopping 81.6% of all residential pest control service revenue last year.
This is exciting for several reasons. First, it means our customers are satisfied, which only reinforces the value of our service model. But recurring revenue from repeat customers is worth even more than its number on the page, since it is generated without any marketing expense being incurred. Recurring revenue also frequently signifies that long-term customer relationships are being built—i.e. if a customer comes back once, they'll likely come back again in the future. Finally, since recurring revenue from clients is usually a sign of a happy customer, it often signifies an increase in referrals.
