Horse Farming in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: September 2023
ANZSIC A0191Revenue
$1.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,866
Businesses
3,409
Wages
$XXX.Xm
Horse Farming in Australia industry analysis
The Horse Farming industry has grown in recent years, driven by climbing demand for thoroughbred horses, boosting sales and the average price paid per horse and service. However, the onset of the COVID-19 pandemic limited export demand and constrained racehorse trading and servicing operations. In addition, declining harness racing activity has reduced demand for standardbred horses over the past several years. Weaker demand for standardbred and other horses has recently hampered the industry’s performance. Overall, industry-wide revenue has been growing at an annualised 1.3% over the past five years and is expected to total $1.6 billion in 2023-24, when revenue will rise by an estimated 1.0%.
Trends and Insights
- The Horse Farming industry is flourishing due to increased interest and investment in horse racing. Despite initial setbacks from the COVID-19 pandemic, online auctions and rising discretionary incomes have led to a surge in horse investment and sales.
- Thoroughbreds comprise a small portion of the total Australian horse population. However, thoroughbred operations can be extremely valuable, with the thoroughbred product segments generating the most industry revenue.
- About 85% of horse farming establishments are located in New South Wales, Queensland and Victoria. These states have abundant flat areas with good natural rainfall or access to irrigation water, which is crucial for horse farming.
- Quality is the main competitive factor in the industry, particularly for operators that farm thoroughbreds. Bloodlines of studs and broodmares that involve previous race winners attract premium prices.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated $1.6bn in 2023.
Trends and Insights
A surge in demand for thoroughbred horses has propelled the industry’s growth
- High-quality thoroughbred horse farming dominates industry revenue in Australia, benefiting recently growing interest and investment in horse racing.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising horse racing activity will industry drive revenue growth
- The Horse and Dog Racing industry, the industry's key downstream market, is set to grow over the coming years as rising per capita gambling expenditure boosts consumer demand for horse racing. The industry will be aided by growing horse racing activity and prize money, which is set to drive revenue increases for thoroughbred horse farmers.
Biggest companies in the Horse Farming in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Coolmore Stud | 60.7 | |
Godolphin Australia | 57.2 | |
Arrowfield Stud | 47.0 |
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 Thoroughbred services, Thoroughbred sales and Standardbred breeding and services. Thoroughbred services is the largest segment of the Horse Farming in Australia.
Trends and Insights
Rising investment by racehorse owners has recently led to a boom in thoroughbred sales
- Racehorse owners and other horse farmers are the primary purchasers of thoroughbred horses. Key annual sales events include the Magic Millions auctions, the Inglis Classic Yearling Sale and the Inglis Australian Easter Yearling Sale.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Beef Cattle Farming in Australia
- Pig Farming in Australia
- Horse and Dog Racing in Australia
- Horse and Sports Betting in Australia
International industries
- Horse & Other Equine Production in the US
- Sheep and Cattle Farming in China
Table of Contents
About this industry
Industry definition
The industry engages in horse farming, which includes breeding thoroughbreds, standardbreds and other horse breeds. Thoroughbred and standardbred horses are mainly sold to trainers for the purpose of horse and harness racing, while other breeds are generally sold to the public for recreational purposes. Industry operators also offer agistment services.
What's included in this industry?
Thoroughbred servicesThoroughbred salesStandardbred breeding and servicesLeisure, work and sport horse breeding and servicesCompanies
Coolmore StudGodolphin AustraliaArrowfield StudPurchase this report to view all 3 major companies in this industry.
Related Terms
SHUTTLE STALLIONSEQUINE INFLUENZATHOROUGHBREDSTANDARDBREDYEARLINGAGISTMENTBROODMARELAMINITISPPEIndustry Code
ANZSIC 0191 - Horse Farming 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 Horse Farming industry is flourishing due to increased interest and investment in horse racing. Despite initial setbacks from the COVID-19 pandemic, online auctions and r...
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
Thoroughbreds comprise a small portion of the total Australian horse population. However, thoroughbred operations can be extremely valuable, with the thoroughbred product seg...
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
About 85% of horse farming establishments are located in New South Wales, Queensland and Victoria. These states have abundant flat areas with good natural rainfall or access ...
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
Quality is the main competitive factor in the industry, particularly for operators that farm thoroughbreds. Bloodlines of studs and broodmares that involve previous race winn...
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
No company in the Horse Farming industry accounts for over 5.0% of industry revenue. The industry is highly fragmented and comprises many sole proprietors. However, some larg...
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 Coolmore Stud's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Godolphin Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Arrowfield Stud's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Coolmore Stud, and factors influencing its performance in the industry
- Description and key data for Godolphin Australia, and factors influencing its performance in the industry
- Description and key data for Arrowfield Stud, 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
Horse farmers face strong regulatory pressures. Strict regulations govern breeding thoroughbreds and recording bloodlines, as this determines the value of foals.
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
Cost structures widely vary among operators in the Horse Farming industry. Larger operators, like Godolphin, tend to have higher labour costs, as they operate larger farms an...
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 Horse Farming industry in Australia in 2024?
The market size of the Horse Farming industry in Australia is $1.6bn in 2024.
How many businesses are there in the Horse Farming in Australia industry in 2023?
There are 3,409 businesses in the Horse Farming industry in Australia, which has grown at a CAGR of 0.5 % between 2018 and 2023.
Has the Horse Farming industry in Australia grown or declined over the past 5 years?
The market size of the Horse Farming industry in Australia has been growing at a CAGR of 1.3 % between 2018 and 2023.
What is the forecast growth of the Horse Farming industry in Australia over the next 5 years?
Over the next five years, the Horse Farming industry in Australia is expected to grow.
What are the biggest companies in the Horse Farming market in Australia?
The biggest companies operating in the Horse Farming market in Australia are Coolmore Stud, Godolphin Australia and Arrowfield Stud
What does the Horse Farming in Australia include?
Thoroughbred services and Thoroughbred sales are part of the Horse Farming industry.
Which companies have the highest market share in the Horse Farming in Australia?
The company holding the most market share in Australia is Coolmore Stud.
How competitive is the Horse Farming industry in Australia?
The level of competition is high and increasing in the Horse Farming industry in Australia.
