Alumina Production in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C2131Revenue
$6.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
6,853
Businesses
3
Wages
$XXX.Xm
Alumina Production in Australia industry analysis
Australia is the world's largest producer of bauxite and exporter of alumina. Alumina is made by applying the Bayer process to bauxite. Alumina can then be further refined into aluminium. Despite the importance of Australia to the global aluminium supply chain, the industry has struggled over the past few years as prices have fluctuated significantly and rising cost pressures weighed on performance. Revenue for the Alumina Production industry is expected to decline at an annualised 8.5% through the end of 2023-24, to $6.7 billion. This includes an anticipated fall of 2.4% in 2023-24 due to falling demand from the downstream Aluminium Smelting industry in Australia.The Alumina Production industry is highly concentrated and has only three major players: Alcoa, Rio Tinto and South32. Each firm is vertically integrated, with upstream bauxite mining and downstream aluminium smelting operations. Although domestic smelters account for a significant portion of demand, most of the alumina produced in Australia is exported. This leaves the industry reliant on global markets to drive performance. Significant fluctuations in the global price of alumina over the past decade have affected profitability. In 2017, the Chinese government implemented environmental policies that closed several Chinese bauxite refineries. These closures reduced the global supply of alumina, significantly inflating revenue in 2017-18. Weakened global demand due to the COVID-19 pandemic, as well as a higher world supply, reversed this trend and prices plummeted. Profit margins at Australian refineries fell sharply, requiring alumina refiners to strategically manage costs to offset falling revenue. Prices rebounded again in 2021-22 when global supply chain difficulties and the Russia-Ukraine conflict disrupted the global aluminium supply chain. As supply chains rebuilt their capacity in 2022-23, prices eased once again.Global demand for aluminium is projected to rise over the coming years due to the importance of aluminium in decarbonising the global economy. However, global supply is also forecast to grow over the same period, which will weigh on prices and subdue revenue growth. Refiners are likely to increase production capacity over the next few years, especially if efforts to develop low-carbon alumina production processes are successful. Industry revenue is forecast to increase at an annualised 0.2% through 2028-29, to $6.8 billion.
Trends and Insights
- Steep fluctuations in the price of alumina have weighed on the Alumina Production industry. Although production volumes are less reliant on short-term fluctuations, the price of alumina has bounced around significantly, especially after the COVID-19 outbreak.
- A dominant share of manufacturers’ output is allocated to metallurgical-grade alumina. More complex grades of alumina, like chemical-grade alumina, are manufactured overseas where there is better access to scaled-up economies.
- Queensland and Western Australia are the only states with alumina refineries. This dynamic largely stems from the location of large bauxite reserves, which is the largest input in alumina production.
- Only three firms operate in this industry, Rio Tinto, Alcoa and South32, concentrating the market share. Barriers to entry are very high and most producers have established and consistent access to bauxite ore.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 8.5 % over the past five years, to reach an estimated $6.7bn in 2023.
Trends and Insights
Disruptions to the global aluminium supply chain have induced alumina price volatility
- The vast majority of alumina produced in Australia is exported to overseas aluminium smelters. Given the product is highly undifferentiated, suppliers rely on movements in prices, and production process cost savings, for profitability.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A strong outlook for aluminium demand will ensure high production volumes over the medium term
- Production volumes of Australian alumina are reliant on the long-term strategy of vertically integrated aluminium producers, premised on forecasted global demand for aluminium. This trend is likely to keep refining volumes high, as aluminium is increasingly crucial in facilitating the transition to net zero emissions.
Biggest companies in the Alumina Production in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Alcoa of Australia | 3,100.0 | |
Rio Tinto | 2,120.0 | |
South32 | 1,510.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Metallurgical-grade alumina and Chemical-grade alumina. Metallurgical-grade alumina is the largest segment of the Alumina Production in Australia.
Trends and Insights
Australian refineries mostly produce metallurgical-grade alumina
- Alumina refineries in Australia predominantly produce metallurgical-grade alumina, a key input for aluminium manufacturing. This grade of alumina is produced through the refining of bauxite at a temperature of up to 1,000 degrees Celsius.
- More insights available in the full report
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Competitors
- There are no industries to display.
Complementors
- Bauxite Mining in Australia
- Aluminium Smelting in Australia
- Aluminium Rolling, Drawing and Extruding in Australia
- Aluminium Door and Window Manufacturing in Australia
International industries
- Aluminum Manufacturing in the US
- Aluminum Manufacturing in Canada
- Aluminium Production in the UK
- Aluminum Smelting in China
Table of Contents
About this industry
Industry definition
Industry firms refine bauxite into alumina (or aluminium oxide), a process that is also referred to as bauxite refining. Alumina is used to produce aluminium.
What's included in this industry?
Metallurgical-grade alumina manufacturingChemical-grade alumina manufacturingCompanies
Alcoa of AustraliaRio TintoSouth32Purchase this report to view all 3 major companies in this industry.
Related Terms
ALUMINAALUMINIUMBAUXITECHEMICAL-GRADE ALUMINABAYER PROCESSIndustry Code
ANZSIC 2131 - Alumina Production in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Steep fluctuations in the price of alumina have weighed on the Alumina Production industry. Although production volumes are less reliant on short-term fluctuations, the price...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
A dominant share of manufacturers’ output is allocated to metallurgical-grade alumina. More complex grades of alumina, like chemical-grade alumina, are manufactured overseas ...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Queensland and Western Australia are the only states with alumina refineries. This dynamic largely stems from the location of large bauxite reserves, which is the largest inp...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Only three firms operate in this industry, Rio Tinto, Alcoa and South32, concentrating the market share. Barriers to entry are very high and most producers have established a...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Locking in long-term supply contracts is key to driving profit gains. Alcoa benefits from gas supply agreements, while South32 extracts gains from a contract that guarantees ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Alcoa of Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Rio Tinto's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of South32's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Alcoa of Australia, and factors influencing its performance in the industry
- Description and key data for Rio Tinto, and factors influencing its performance in the industry
- Description and key data for South32, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A fall in demand from domestic aluminium smelters is on track to weigh on industry-wide turnover. Domestic smelters are a key downstream market and rely heavily on alumina re...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins rely on movements in prices, especially for key inputs like electricity. In the wake of the Russia-Ukraine conflict, electricity prices spiked, eroding industr...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Alumina Production industry in Australia in 2024?
The market size of the Alumina Production industry in Australia is $6.7bn in 2024.
How many businesses are there in the Alumina Production in Australia industry in 2023?
There are 3 businesses in the Alumina Production industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Alumina Production industry in Australia grown or declined over the past 5 years?
The market size of the Alumina Production industry in Australia has been declining at a CAGR of 8.5 % between 2018 and 2023.
What is the forecast growth of the Alumina Production industry in Australia over the next 5 years?
Over the next five years, the Alumina Production industry in Australia is expected to grow.
What are the biggest companies in the Alumina Production market in Australia?
The biggest companies operating in the Alumina Production market in Australia are Alcoa of Australia, Rio Tinto and South32
What does the Alumina Production in Australia include?
Metallurgical-grade alumina manufacturing and Chemical-grade alumina manufacturing are part of the Alumina Production industry.
Which companies have the highest market share in the Alumina Production in Australia?
The company holding the most market share in Australia is Alcoa of Australia.
How competitive is the Alumina Production industry in Australia?
The level of competition is high and steady in the Alumina Production industry in Australia.
