Cotton Growing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC A0152Revenue
$2.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
12,514
Businesses
807
Wages
$XXX.Xm
Cotton Growing in Australia industry analysis
Cotton growing farms have endured extreme revenue volatility and fluctuating profit margins, with various external factors influencing industry performance. Substantially below-average rainfall reduced irrigation water availability over the two years through 2019-20, with some cotton growing regions reporting their lowest annual rainfall on record. Drought conditions, reported over most major cotton growing areas, caused industry revenue to plummet over those two years. However, significant increases in rainfall and water availability boosted revenue in the falling two years. Lower rain in 2023-24 has again weighed on industry revenue. Overall, industry revenue has skyrocketed by an annualised 12.1% over the past five years to total $2.8 billion in 2023-24, when revenue will plunge by an estimated 23.8%.External global factors like international cotton demand and regulatory changes in major cotton-producing countries determine the performance of Australian cotton growers. Although Australia is not a significant cotton producer on a global scale, the industry relies on exports through downstream markets. Cotton gins sell almost all Australian-grown cotton lint abroad because of the absence of domestic cotton spinning businesses, which is the next step in cotton fibre production after ginning. Overall, increased demand for Australian cotton from Asian textile industries has supported the industry.In the future, industry revenue is set to inch downward in line with lower output. Increasing competition for irrigation water and greater regulation of water extraction in the Murray-Darling Basin will threaten the industry. However, rising demand in export markets will aid cotton growers. Industry revenue is projected to fall at an annualised 0.5% over the five years through 2028-29 to total $2.7 billion.
Trends and Insights
- The industry depends heavily on water availability. Industry revenue soared over the two years through 2021-22 because of above-average rainfall and is set to sink in 2023-24 owing to lower rainfall.
- Cottonseeds account for the largest proportion of industry production in volume terms. However, cotton lint commands a much higher price, making it significantly more valuable than cottonseeds.
- New South Wales and Queensland are Australia's two most prominent cotton growing states. Together, the two states account for over 99% of industry businesses.
- Industry businesses compete significantly with producers of alternate fibres. These fibres include natural fibres like wool and hemp and synthetic fibres.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 12.1 % over the past five years, to reach an estimated $2.8bn in 2023.
Trends and Insights
Rainfall, water availability and participation have strongly influenced industry revenue
- When water is scarce, farmers reduce farmland dedicated to cotton growing instead planting other crops.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Industry revenue will remain volatile going forward
- Industry revenue will remain volatile because the industry relies on water irrigation from Murray-Darling Basin waterways.
Biggest companies in the Cotton Growing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Australian Food & Fibre | 111.2 | |
Cubbie Station | 111.2 |
To view the market share and analysis for all 2 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 and Cottonseed. Cotton lint is the largest segment of the Cotton Growing in Australia.
Trends and Insights
High cotton lint prices have diminished cottonseed's revenue contribution
- Cottonseed volumes account for the largest proportion of industry production. However, it accounts for much lesser in value terms.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Cotton Ginning in Australia
Complementors
- Grape Growing in Australia
- Sugar Cane Growing in Australia
- Hay and Other Crop Growing in Australia
International industries
- Cotton Farming in the US
- Hay and Other Crop Growing in New Zealand
- Cotton Growing in China
Table of Contents
About this industry
Industry definition
Farms in the industry grow cotton. Cotton is the white downy fibres grown on shrubby plants of the genus Gossypium. Downstream manufacturers use these fibres to make textiles and other products.
What's included in this industry?
CottonseedCotton lintCompanies
Australian Food & FibreCubbie StationPurchase this report to view all 2 major companies in this industry.
Related Terms
LINTCOTTONSEEDCOTTON PICKERGINNED COTTONIndustry Code
ANZSIC 0152 - Cotton Growing 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
The industry depends heavily on water availability. Industry revenue soared over the two years through 2021-22 because of above-average rainfall and is set to sink in 2023-24...
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
Cottonseeds account for the largest proportion of industry production in volume terms. However, cotton lint commands a much higher price, making it significantly more valuabl...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
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
New South Wales and Queensland are Australia's two most prominent cotton growing states. Together, the two states account for over 99% of industry businesses.
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
Industry businesses compete significantly with producers of alternate fibres. These fibres include natural fibres like wool and hemp and synthetic fibres.
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
The Cotton Growing industry has no Major Companies. Although several corporate cotton producers operate in the industry, most cotton farms are family-owned and independent.
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 Australian Food & Fibre's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Cubbie Station's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Australian Food & Fibre, and factors influencing its performance in the industry
- Description and key data for Cubbie Station, 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
The industry must comply with several regulations, particularly related to water usage. The Water Act 2007 governs water usage in the Murray-Darling Basin.
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 have surged in recent years. This trend can be attributed to improved output volumes in line with better rainfall conditions following the drought in 2019-20.
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 Cotton Growing industry in Australia in 2024?
The market size of the Cotton Growing industry in Australia is $2.8bn in 2024.
How many businesses are there in the Cotton Growing in Australia industry in 2023?
There are 807 businesses in the Cotton Growing industry in Australia, which has grown at a CAGR of 0.4 % between 2018 and 2023.
Has the Cotton Growing industry in Australia grown or declined over the past 5 years?
The market size of the Cotton Growing industry in Australia has been growing at a CAGR of 12.1 % between 2018 and 2023.
What is the forecast growth of the Cotton Growing industry in Australia over the next 5 years?
Over the next five years, the Cotton Growing industry in Australia is expected to decline.
What are the biggest companies in the Cotton Growing market in Australia?
The biggest companies operating in the Cotton Growing market in Australia are Australian Food & Fibre and Cubbie Station
What does the Cotton Growing in Australia include?
Cottonseed and Cotton lint are part of the Cotton Growing industry.
Which companies have the highest market share in the Cotton Growing in Australia?
The company holding the most market share in Australia is Australian Food & Fibre.
How competitive is the Cotton Growing industry in Australia?
The level of competition is moderate and steady in the Cotton Growing industry in Australia.
