LITTLE FALLS, N.J. — Food processing plants and newly opened restaurants may offer the best chance for pest management companies and their chemical suppliers to increase market share, according to a study soon to be released by Kline & Co.

Data from the company’s “Pest Control in U.S. Food Handling Establishment 2005” indicates that about 25 percent of food processing plants still use their own employees to coordinate pest management, as opposed to an outside company. In contrast, more than 90 percent of restaurants, kitchens, and warehouses — which make up the bulk of the food-handling pest management market — use contractors.

The implication for the industry is that growth for pest management services in the kitchen categories will have to be based on increasing the number of restaurants and schools serviced, whereas there is an opportunity for increased market penetration in warehouses and processing plants.

"If you know that you're peaked out in restaurants, and that 90-plus percent of them already have a pest control operator, you have to grow by taking share from somebody else," said Dennis Fugate, industry manager of the Specialty Pesticides practice for Kline's market research division. "On the other hand, if you can get a plant to convert to pest control, a single plant is probably worth 10 or more restaurants in terms of volume." 

Kline's study pegs the U.S. market for professional pest management at $5 billion in 2004. Commercial food-handling activities are likely to represent about $1 billion in service revenue and nearly $100 million in chemical use.

The study also tracks an undercurrent of dissatisfaction in the market regarding methods for dealing with flies, specifically in food processing plants.

"There's a definite interest in new product forms and finding safer ways to handle fly problems with reduced exposure to pesticides," said Fugate. "Flies are tough, though. Open the door for 10 seconds and you might end up with a fly infestation, regardless of how clean the facility is." He notes that pest management companies are looking to address this issue by developing preventative methods that focus on exclusion — teaching clients to improve sanitation and keep doors closed, as opposed to using chemicals.