Pest Control Services  

Eddie Olmedo

Joanna Mochocka

Category Lead: Pest / Waste

Global Sourcing Programs Manager

joanna.mochocka@cbre.com

eddie.olmedo@cbre.com

Category Overview

Category
Definition

Pest Control refers to the management and regulation of pests to minimize their harmful effects on human health, the environment, and property

Pest Control Services are classified under the category of soft services in facilities management and include the following methods and techniques to prevent, eliminate, and/or control pets:

• Chemical Pest Control
• Biological Pest Control
• Electronic Pest Control
• Physical Pest Control
• Hygiene Control

High Level
Strategy

• Develop Global and Regional best-in-class information, processes and templates, pricing tools  for Pest Control Services
• Utilizing the digital Playbook, continue to develop world class coverage and choice, with particular attention on educating the end user
• Expand Strategic and Preferred relationships delivering sustainable offerings across all regions and LOB

Scope

• Implementation of  Category Playbook to socialize processes,  procedures,  analysis, market intelligence
• Showcase opportunities for best practice in field of Pest Control
• Optimization of the supply chain whilst offering credible 4x4 regional coverage for a range of services and solutions for Pest Control and wildlife removal
• Implement more Diverse suppliers- where practical
• Align with Smart FM planning and strategy

Category Maturity

• This category is  localized based on local regulations
• Few Global suppliers (Rentokil, Anticimex, Ecolab, Orkin) exist
• Top 4 suppliers cover 46% spend globally
  
• 60% global spend from S&P Supplier
  

Category Spend

Total Spend
$53 M

•  Deliver World Class Pest Control Solutions that utilize CBRE Preferred and Contracted suppliers providing for sustainable outcomes and long -term supplier relationships in line with CBRE ESG policies

•  Ensure best-in-class financial operating models that leverage CBRE’s buying power 
•  Demonstrate value to our clients and stakeholders•  Align global KPI’s and SLA’s to take into consideration mandatory regulations and requirements

Objectives / Market Characteristics

Market Characteristics/
Cost Drivers

Potential
Saving Levers

•  Russia – Ukraine Crisis impacts Europe, Asia & US market – High Impact  

•  Pest Control Demand Increase impacts the market Globally – Medium Impact
•  High cost of Implementation & Expensive Products
•  Mobile Workforce 

•  Leverage CBRE Global / Leverage CBRE Global / Regional suppliers for clients whenever possible Regional suppliers for clients whenever possible

•  Technology enhancements and integration for innovation
•  Utilizing playbooks tools, ( ie category calculator ect) to optimize operating model / increase employee productivity

Objectives
and Targets

Risks and Constraints

•  The global pest control service market is estimated to be $33 billion in 2023, growing at a CAGR of close to 5–7 % between 2023 and 2028 • Pest control services penetration is gaining traction outside Europe and North America slowly
•  APAC and LATAM are witnessing increasing adoption, due to the efforts by large global buyers to consolidate supply bases
•  Industry has a high retention rate 
•  Economic Development
•  Growth of Commercial Sector and Climatic Change

AMER

APAC

EMEA

• Rentokil / Terminix
• Anticimex
• Ecolab
• Orkin
• Truly Nolen of America
  

• Rentokil Initial
• Anticimex
• Ecolab
• PCI Pest Control
• De Kriminators
• HVL Pest Services Pvt Ltd

• Rentokil Initial
• Anticimex
• Ecolab
• Principle Cleaning Services
• Kingdom Services

Top 5 Global Suppliers by Region

Key Suppliers

Current Status

Current Plans
to Build 4x4
Coverage

Risks and Constraints

Current
Suppliers

Non-Traditional
Suppliers

• Truly Nolen of America

Supply
Market
Trends

• Intensity of Rivalry 
• The global pest control market has been a consolidated one with five major players leading the market. These players are Rentokil, Rollins, Anticimex, Ecolab and Bayer. Rentokil holds most of the global market share among other suppliers
• These manufacturers are concentrating on mergers & acquisitions and geographical expansion of new technology to increase their market share in the overall industry
• The competition in the market is high
• Price Movement
• Since the demand for pest control services is high, pest control service companies are hiking prices, considering use of eco-friendly pest products
• Input Cost Movement
• Supply chain disruptions have led to upward pressure and increase of wages significantly increased the cost of pest control materials used in services
• Demand Movement         
•  Q1 2023 has seen heavy demand for pest control services,             due to health, safety concerns, climatic changes, increase               in population and migrations
• Market Competition           
• Market competition has been growing with both global                    and local players willing to provide services at                                  competitive  prices 
  

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