NAICS 325320 Quarterly Industry Report
Pesticide and Other Agricultural Chemical Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325320Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325320 delivers business owners, acquirers, and financial advisors data-driven valuation insights for the pesticide and agricultural chemical manufacturing sector, drawing on data from the U.S. Census Bureau[5] and EPA[8] pesticide registration and usage statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325320 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the pesticide and other agricultural chemical manufacturing industry.
Industry Definition & Overview
Pesticide and Other Agricultural Chemical Manufacturing (NAICS 325320) encompasses establishments primarily engaged in the formulation and preparation of agricultural and household pest control chemicals, including herbicides, insecticides, fungicides, rodenticides, plant growth regulators, and seed treatment products. According to the U.S. Census Bureau[5], approximately 207 companies operate within this classification, employing over 12,000 workers in formulation plants, packaging facilities, and research laboratories concentrated in agricultural regions and chemical manufacturing corridors across the Midwest, Southeast, and Mid-Atlantic states.
The industry formulates active ingredients manufactured by basic chemical producers into application-ready products including liquid concentrates, emulsifiable concentrates, wettable powders, granular formulations, and ready-to-use consumer products. Herbicides represent the largest product category by revenue, followed by insecticides, fungicides, and specialty crop protection products. The Bureau of Labor Statistics[6] identifies production roles including chemical blending operators, formulation chemists developing product specifications, packaging line operators, quality assurance analysts performing product stability and potency testing, and regulatory affairs specialists managing EPA registration compliance for each formulated product offered for commercial sale.
Per the SBA Office of Advocacy[7], the industry includes both large multinational crop science companies conducting active ingredient synthesis and global formulation operations, and smaller regional formulators purchasing active ingredients from primary manufacturers for custom blending into branded or contract-manufactured crop protection products. Generic pesticide manufacturers have grown market share as patent expirations on major active ingredients create opportunities for off-patent formulation businesses serving price-sensitive agricultural markets.
What's Included in This Industry
- Valuation multiples benchmarked to pesticide and agricultural chemical formulation operations
- Revenue and EBITDA trends for domestic crop protection chemical manufacturing
- SBA lending data and financing terms for NAICS 325320 businesses
- Comparable transaction data from recent agricultural chemical company acquisitions
- Industry risk factors including EPA registration costs, product liability, and generic competition
- Workforce composition and labor cost benchmarks for formulation operations
- Regional market analysis covering Midwest and Southeast crop protection markets
- Capital expenditure benchmarks for formulation plants and packaging equipment
- Growth projections tied to crop acreage trends and biological crop protection adoption
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing | 3253 |
| NAICS Industry | Pesticide and Other Agricultural Chemical Manufacturing | 32532 |
| National Industry | Pesticide and Other Agricultural Chemical Manufacturing | 325320 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers producing active ingredient intermediates and solvents consumed in pesticide formulation and agricultural chemical manufacturing processes |
| 325311 | Nitrogenous Fertilizer Manufacturing | Nitrogenous fertilizer manufacturers whose products are applied alongside pesticides as part of integrated crop management programs at agricultural production operations |
| 325314 | Fertilizer (Mixing Only) Manufacturing | Fertilizer mixing operations distributing crop protection products alongside blended fertilizers through shared retail agricultural dealer sales channels nationwide |
| 325998 | All Other Miscellaneous Chemical Product and Preparation Manufacturing | All other miscellaneous chemical product manufacturers producing surfactants, adjuvants, and spray tank additives used with pesticide formulations in field applications |
| 424910 | Farm Supplies Merchant Wholesalers | Farm supply merchant wholesalers distributing formulated pesticide products from manufacturers through retail dealer and cooperative distribution networks serving farmers |
| 111199 | All Other Grain Farming | All other grain farming operations representing a primary end market consuming herbicides, insecticides, and fungicides for crop protection during growing seasons |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.0% | 25 |
| 2 | Georgia | 8.8% | 20 |
| 3 | Texas | 7.9% | 18 |
| 4 | Florida | 7.0% | 16 |
| 5 | Missouri | 5.7% | 13 |
| 6 | North Carolina | 4.8% | 11 |
| 7 | Iowa | 4.4% | 10 |
| 8 | Tennessee | 4.4% | 10 |
| 9 | Illinois | 4.0% | 9 |
| 10 | New York | 3.5% | 8 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
32
Total SBA Loans
$23.1M
Total Loan Volume
$722K
Average Loan Size
14 yrs
Average Loan Term
10.38%
Average Interest Rate
160
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Agricultural chemical manufacturers evaluating SBA financing must consider qualification under the SBA size standards[10] for NAICS 325320, which set the threshold at 1,150 employees for small business classification. The SBA 7(a) loan program[11] supports smaller generic formulators and specialty crop protection manufacturers acquiring operations or financing working capital for active ingredient procurement, while the CDC/504 loan program[12] provides long-term fixed-rate financing for formulation equipment, packaging lines, warehouse facilities, and EPA-required environmental control systems. Lenders evaluate EPA product registrations, active ingredient supply agreements, and product liability insurance coverage when structuring agricultural chemical manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | America First FCU | 8 | $19.6M | $2.4M |
| 2 | Readycap Lending, LLC | 8 | $1.6M | $200K |
| 3 | Magnifi Financial CU | 8 | $1.3M | $156K |
| 4 | Northeast Bank | 8 | $678K | $85K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an agricultural chemical manufacturer?
Agricultural chemical manufacturers typically trade at 5x to 9x EBITDA, with branded crop protection companies commanding higher multiples than generic formulators. Per U.S. Census Bureau[5] data, valuations reflect the value of EPA product registrations, proprietary formulation technology, and established distribution relationships with agricultural dealers.
What SBA loan options are available for agricultural chemical businesses?
The SBA[10] sets the small business threshold at 1,150 employees for NAICS 325320. SBA financing supports smaller generic formulators and specialty manufacturers, with 7(a) loans for acquisitions and working capital, and 504 loans for formulation equipment and facility investments.
What EPA requirements affect agricultural chemical manufacturers?
The EPA[8] requires federal registration of all pesticide products under FIFRA, including submission of toxicology, environmental fate, and efficacy data supporting each product registration. Registration maintenance, re-registration reviews, and label compliance inspections create ongoing regulatory costs for formulating manufacturers.
How does generic competition affect branded agricultural chemical companies?
Patent expirations on major herbicide and insecticide active ingredients create opportunities for generic formulators to enter markets with lower-cost alternatives. Per the EPA[8], generic manufacturers can reference original registrant data after data protection periods expire, reducing registration costs and enabling competitive pricing.
What are the main end markets for agricultural chemicals?
Row crop agriculture including corn, soybeans, wheat, and cotton represents the largest market, with the USDA Economic Research Service[13] reporting that herbicides account for the greatest share of crop protection spending. Specialty crops, turf and ornamental, and consumer household pest control products represent additional market segments.
How are biological crop protection products affecting the industry?
Biological pesticides including microbial products, plant extracts, and biochemical pest control agents are the fastest-growing segment of crop protection. According to the EPA[8], biopesticide registrations have increased significantly as growers seek reduced-risk alternatives to conventional chemical pesticides for integrated pest management programs.
What product liability risks affect agricultural chemical manufacturers?
Crop damage claims, environmental contamination allegations, and human health concerns create product liability exposure for pesticide formulators. Per the EPA[8], label compliance and proper use instructions are critical risk management tools, though manufacturers face potential liability for off-target spray drift and groundwater contamination.
What workforce challenges do agricultural chemical manufacturers face?
The Bureau of Labor Statistics[6] reports that formulation chemists, regulatory affairs specialists with EPA registration experience, and quality assurance analysts are in demand across the agricultural chemical manufacturing sector. Competition from pharmaceutical and specialty chemical employers for trained chemists creates ongoing recruitment challenges.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]EPA epa.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]USDA Economic Research Service ers.usda.gov
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