Cotton Ginning in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: March 2024
ANZSIC A0521Revenue
$5.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
1,600
Businesses
36
Wages
$XXX.Xm
Cotton Ginning in Australia industry analysis
The Cotton Ginning industry is an important part of the agricultural support services and national cotton sectors, and is closely linked to the Cotton Growing industry. That’s why various agricultural and weather-related factors indirectly affect cotton ginners, like climatic conditions, water supply regulation, cotton stockpiling, and global cotton consumption and production fluctuations. Typically, cotton is harvested and ginned towards the end of the financial year, with any surplus production carried into the following year. Higher cotton production correlates with higher revenue, often with a one-year delay due to the timing of harvest season. The variability of these factors has caused significant revenue volatility in recent years.
Trends and Insights
- High rainfall and a surplus of cotton lint from farmers have caused a spike in cotton ginning activity. Sky-high output has been exported to countries experiencing a low supply of cotton, like Brazil and America.
- Export markets have boomed due to high yields in cotton production. Global users of cotton, like garment and home-furnishing manufacturers, are seeking out more Australian ginned cotton.
- Cotton ginners tend to operate close to cotton farms, which are situated close to rivers because cotton is a highly water-intensive crop. These conditions result in a high density of farms and ginners in New South Wales and Queensland.
- Synthetic textiles are easily substituted for cotton as they require less maintenance and can be manufactured year-round. Cotton relies on rainfall, while synthetic textiles do not, making them an easy substitute during low yielding seasons.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 11.5 % over the past five years, to reach an estimated $5.7bn in 2024.
Trends and Insights
Cotton ginners maintain a strong position over cotton farmers
- Farmers generally have two options for processing and selling cotton: they can sell it all to a gin, which then processes and markets the cotton, or they can sell it to a marketing intermediary that sources a gin to process the cotton into lint and cottonseeds.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Rainfall levels will continue to determine wider cotton ginning revenue
- Water availability and annual rainfall are set to remain the crucial factors determining domestic cotton production. According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), domestic cotton output strongly rebounded in 2023, with gin operators receiving high volumes from a surplus of supply in 2022.
Biggest companies in the Cotton Ginning in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Namoi Cotton | 1,499.7 | |
Louis Dreyfus Company | 1,128.6 | |
Moreton Pastoral | 541.2 |
To view the market share and analysis for all 5 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 Cotton lint destined for China, Cotton lint destined for other export markets and Cottonseeds. Cotton lint destined for China is the largest segment of the Cotton Ginning in Australia.
Trends and Insights
The amount of cotton lint destined for other export markets has skyrocketed
- This segment includes all cotton lint exported to countries other than China.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Grain Growing in Australia
- Hay and Other Crop Growing in Australia
Complementors
- Cotton Growing in Australia
- Synthetic and Natural Textile Manufacturing in Australia
International industries
- Crop Services in the US
Table of Contents
About this industry
Industry definition
Firms in the industry are mainly engaged in ginning and trading cotton. Ginning separates the cotton fibres (lint) from the cottonseed. Cleaned lint is pressed into bales and sold to cotton spinners and textile manufacturers.
What's included in this industry?
Cotton seedsCotton lintCompanies
Namoi CottonLouis Dreyfus CompanyMoreton PastoralPurchase this report to view all 5 major companies in this industry.
Related Terms
LINTCOTTONSEEDGINPRICE-PER-BALEIndustry Code
ANZSIC 0521 - Cotton Ginning 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
High rainfall and a surplus of cotton lint from farmers have caused a spike in cotton ginning activity. Sky-high output has been exported to countries experiencing a low supp...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Export markets have boomed due to high yields in cotton production. Global users of cotton, like garment and home-furnishing manufacturers, are seeking out more Australian gi...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- 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
Cotton ginners tend to operate close to cotton farms, which are situated close to rivers because cotton is a highly water-intensive crop. These conditions result in a high de...
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 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
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
Synthetic textiles are easily substituted for cotton as they require less maintenance and can be manufactured year-round. Cotton relies on rainfall, while synthetic textiles ...
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 2019-2024
- 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
Namoi and LDC have collaborated in a joint venture to streamline their operations, establishing the Namoi Cotton Alliance. Namoi looks after operations, while LDC looks after...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Namoi Cotton's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Louis Dreyfus Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Moreton Pastoral's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Namoi Cotton, and factors influencing its performance in the industry
- Description and key data for Louis Dreyfus Company, and factors influencing its performance in the industry
- Description and key data for Moreton Pastoral, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Changeable conditions associated with international trade and rainfall create revenue volatility. Both rainfall and foreign exchange rates have innate risks that cotton gins ...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Profitability is set to rise as exports shoot up due to prior reserves and high yields associated with strong rainfall. Australia is now in a strong position to take a greate...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 Cotton Ginning industry in Australia in 2024?
The market size of the Cotton Ginning industry in Australia is $5.7bn in 2024.
How many businesses are there in the Cotton Ginning in Australia industry in 2024?
There are 36 businesses in the Cotton Ginning industry in Australia, which has grown at a CAGR of 3.0 % between 2019 and 2024.
Has the Cotton Ginning industry in Australia grown or declined over the past 5 years?
The market size of the Cotton Ginning industry in Australia has been growing at a CAGR of 11.5 % between 2019 and 2024.
What is the forecast growth of the Cotton Ginning industry in Australia over the next 5 years?
Over the next five years, the Cotton Ginning industry in Australia is expected to decline.
What are the biggest companies in the Cotton Ginning market in Australia?
The biggest companies operating in the Cotton Ginning market in Australia are Namoi Cotton, Louis Dreyfus Company and Moreton Pastoral
What does the Cotton Ginning in Australia include?
Cotton seeds and Cotton lint are part of the Cotton Ginning industry.
Which companies have the highest market share in the Cotton Ginning in Australia?
The company holding the most market share in Australia is Namoi Cotton.
How competitive is the Cotton Ginning industry in Australia?
The level of competition is high and increasing in the Cotton Ginning industry in Australia.
