In this piece, we will take a look at the 12 biggest pest control companies in the world. For more pest control companies,  head on over to 5 Biggest Pest Control Companies in the World.

While the pest control industry might not be one of the more flashy or lucrative ones in the world, it still plays a crucial role in modern day life. The ability of humans to control their environment, grow food, and sanitize living spaces have improved living standards and reduced diseases significantly. However, despite these advances, pests continue to be a problem, particularly for the agriculture sector. According to the United Nations Food and Agriculture Organization (FAO), up to 40% of global crop yields are lost annually due to damage from pests and diseases, with plant diseases causing a whopping $220 billion in damages and pests responsible for a sizeable $20 billion in losses. And while one would expect that as technology advances, this damage will reduce, the reality might be the opposite. This is due to the fact that climate change is providing fertile grounds for pests and insects to proliferate even in the world’s colder regions, with insects such as the fall armyworm, fruit flies, and locusts expected to change their migratory patterns due to climate change.

The industry itself has evolved with time, with product efficiency increasing and research and development times lengthening, according to Deloitte. In a research report, the firm highlights that the average gram per hectare of herbicide use has dropped from 2.4 kilograms in the 1950s to 75 grams in 2010 – 2014, with the average lead time to develop a new product lengthening from 8.3 years in 1995 to 11.3 years in the mid 2010s. During the same time period, average research and development costs have also nearly doubled from an earlier $152 million to $286 million.

At the same time, regulatory pressure on firms to ensure that their products do not cause any harm to humans is also increasing. One of the strongest examples of this trend is the agrochemical behemoth Bayer Aktiengesellschaft (OTCMKTS:BAYRY), which has faced a variety of different lawsuits after it decided to acquire the U.S crop control firm Monsanto. The latter’s Roundup weedkiller has seen tens of thousands of lawsuits in the U.S., and one such suit is likely to have shocked Bayer’s management as an Oakland jury awarded a California couple a stunning $2.5 billion in damages after they allegedly developed cancer from the weedkiller. The award was significantly slashed to $87 million later on by an Alameda Court, only a couple of months after a San Francisco court awarded another Roundup victim $80 million. Immediately after the award, Bayer’s shares sank to a seven-year low.

Pest Control Industry Outlook

In terms of overall value, the global pest control market was estimated to be worth $22.7 billion in 2021 and should grow at a compounded annual growth rate (CAGR) of 5.1% between then and 2026 to sit at $29 billion by the end of 2026 according to research from Markets and Markets. The research firm believes that growth in vector borne diseases such as malaria will spur global health initiatives to counter them, which will end up increasing the demand for pest control products. It adds that a growing consumer wariness about chemical pest control products and their hazardous environmental effects are making companies shift to biological products which are more sustainable.

Looking at the on ground situation, the pest control industry is also facing inflationary pressures but continues to have the strong pricing power to offset these as well. According to Kenneth Krause, the chief financial officer of Rollins, Inc. (NYSE:ROL):

When we look at the business, there’s two or three broad buckets of costs. There’s people, there’s materials and then there’s fleet. And when we look at the business, we started to see gradual improvement in fleet as we move throughout the year. The pressures that we felt earlier in the year when oil was much higher than where it is currently, started to abate as we went throughout the year. The one point that was good to see for us as we finished the year was actually improvements in materials and supplies. And so the second category of costs that I spoke about materials and supplies was certainly €“ it was helpful to see some improvement as a percentage of sales to close the year out in that area.

And last but certainly not least, our people costs, we continue to manage that very closely. It’s a challenging market. Our focus is on hiring the best and the brightest, retaining and providing the tools that will continue to drive that high level of engagement across our workforce that in turn results in that high level of customer service that we’re known for. And so we’re continuing to manage the inflationary pressures. And that’s part of the reason why Jerry spoke about our intent and desire to pull forward the pricing. We’re trying to stay ahead of the inflationary cycle that we’re all feeling and trying to pass along that price and price our €“ the value of the services that we’re providing to our customers.

Today, we’ll look at some of the biggest pest control companies in the world, with the top picks being Rollins, Inc. (NYSE:ROL), Ecolab Inc. (NYSE:ECL), and Reckitt Benckiser Group plc (OTCMKTS:RBGLY).

Our Methodology

We used different sources to pick out which pest control companies make the most money. Then, their market value was calculated. For the publicly traded firms, this was easy, but for the private firms, a comparable company’s Enterprise Value/Revenue ratio was used to extrapolate their worth. Enterprise value is the closest approximation to market value since it covers the firm’s worth except for its liquid assets such as cash. The top twelve picks are listed below, and they are a blend of companies that provide pest control services and pest control products.

Biggest Pest Control Companies in the World

12. Aptive Environmental

Latest Value Estimate: $2.2 billion

Aptive Environmental is an American company headquartered in Provo, Utah. The firm provides residential pest control services across the U.S., in thousands of cities across more than half a million homes. Its services include an initial ‘flushing treatment’ that draws out the pests and then Aptive Environmental takes care of them in follow up treatments that can take place as soon as 20 days later.

Along with Ecolab Inc. (NYSE:ECL), Rollins, Inc. (NYSE:ROL), and Reckitt Benckiser Group plc (OTCMKTS:RBGLY), Aptive Environmental is one of the biggest pest control companies in the world.

11. Arrow Exterminators

Latest Value Estimate: $2.3 billion

Arrow Exterminators is one of the older pest control companies in the U.S. which was set up in 1964. The firm claims to be the second largest family owned pest control company in the U.S. It has about 200 hundred service centers. Arrow Exterminators provides a variety of services such as mosquito, termite, pest, and fire ant control.

10. Spectrum Brands Holdings, Inc. (NYSE:SPB)

Latest Value Estimate: $2.61 billion

Spectrum Brands Holdings, Inc. (NYSE:SPB) is an American firm based in Middleton, Wisconsin. It provides insect and weed control products for gardens alongside household pest control solutions.

Spectrum Brands Holdings, Inc. (NYSE:SPB)’s first quarter of the fiscal year 2023 saw the firm report a 5.8% revenue drop alongside a $40 million operating loss. 30 of the 943 hedge funds part of Insider Monkey’s Q4 2022 survey had held a stake in the company.

Spectrum Brands Holdings, Inc. (NYSE:SPB)’s largest investor in our database is Amy Minella’s Cardinal Capital which owns 1.2 million shares that are worth $78 million.

9. Virbac SA (OTCMKTS:VRBCF)

Latest Value Estimate: $3.37 billion

Virbac SA (OTCMKTS:VRBCF) is a French company headquartered in Carros, France. It primarily makes and sells products for both pets and food producing animals. These include pest control products, parasiticides, and others such as anti tick and parasitic dermatitis prevention shampoos.

8. Elis SA (OTCMKTS:ELSSF)

Latest Value Estimate: $3.56 billion

Elis SA (OTCMKTS:ELSSF) is a French hygiene and well being services provider. Its portfolio also includes pest control, insect control, and disinfection services. The firm has operations in 28 countries, across 440 production and service centers. It is based in Saint-Cloud, France.

7. Anticimex

Latest Value Estimate: $7.9 billion

Anticimex is a Swedish privately held firm headquartered in Stockholm. The firm traces its roots back to 1910, and it is one of the largest pest control companies in Europe. It has a presence in more than a dozen countries and is known as Flick in Australia and New Zealand.

6. Sodexo S.A. (OTCMKTS:SDXAY)

Latest Value Estimate: $13.68 billion

Sodexo S.A. (OTCMKTS:SDXAY) is a French on-site services provider. It has a vast facility management portfolio, which includes deep cleaning and pest control services. Sodexo S.A. (OTCMKTS:SDXAY) is also one of Europe’s largest companies in terms of its size, with hundreds of thousands of employees and operations in more than fifty countries. The firm is headquartered in Issy-les-Moulineaux, France.

Rollins, Inc. (NYSE:ROL), Sodexo S.A. (OTCMKTS:SDXAY), Ecolab Inc. (NYSE:ECL), and Reckitt Benckiser Group plc (OTCMKTS:RBGLY) are some of the biggest pest control companies in the world.

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Disclosure: None. 12 Biggest Pest Control Companies in the World is originally published on Insider Monkey.