Rice Growing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC A0146Revenue
$268.7m
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,625
Businesses
180
Wages
$XX.Xm
Rice Growing in Australia industry analysis
The amount of water farmers in the Rice Growing industry can access influences production, as rice is a water-intensive crop. Therefore, the level of annual rainfall and water availability are key determinants of industry performance. Rice growers' reliance on rainfall is reflected in the industry's performance in 2018-19 and 2019-20. Industry output and revenue were negligible over this period, as severe drought in the Murray-Darling Basin (the Basin), which hosts most industry establishments, forced many farmers to grow other crops. This decline has reversed since 2019-20, when consecutive years of above-average rainfall allowed farmers to produce a bountiful crop. These conditions drove high production volumes, while strong demand kept prices relatively high. Rice growers have capitalised on this dynamic, registering a surge in industry-wide profit margins. However, industry revenue is expected to grow at an annualised 45.9% over the five years through 2023-24, to $268.7 million. Much of this growth stems from the fact that the five year period begins on a low base year. Yet, in 2023-24, revenue is set to grow 18.3%, water availability remains healthy which will drive higher production volumes over the year.
Trends and Insights
- Rice farmers have grappled with volatile conditions, as a surge in rainfall since 2019-20 fosters soaring production volumes. The performance of the industry relies on high water availability, which has fuelled substantial revenue growth.
- Volatile weather conditions have played havoc with product volumes in recent years. Revenue from long-grain rice shrunk because of droughts, with medium-grain rice taking a marginally larger share of revenue to compensate.
- The majority of rice production occurs in the Murray and Murrumbidgee valleys of New South Wales due to the ideal growing conditions. This means the industry’s spread of establishments is very concentrated.
- Ricegrowers Limited controls product segmentation, creating competition among farmers for more profitable rice varieties. This is intensified during times of drought and reduced water allocations, as declining water availability has escalated internal competition over recent years.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 45.9 % over the past five years, to reach an estimated $268.7m in 2024.
Trends and Insights
The industry's performance is tied to water availability
- The industry's performance is largely dependent on favourable farming conditions.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Production volumes are set to remain steady over the coming years
- Rice production is forecast to remain steady for the next few years due to improved farming methods and strong downstream demand. Rice growers in Australia have demonstrated a propensity to grow and sell rice at healthy profit margins.
Biggest companies in the Rice Growing in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Rice Growing in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Short-grain rice, Medium-grain rice and Long-grain rice. Short-grain rice is the largest segment of the Rice Growing in Australia.
Trends and Insights
Australia is well-suited to growing medium-grain rice
- Medium-grain rice, specifically of the Japonica variety, is dominant in Australia due to its suitability for the country's growing conditions.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Grain Growing in Australia
Complementors
- Flour and Grain Mill Product Manufacturing in Australia
- Tea, Coffee and Other Food Manufacturing in Australia
- Cereal Grain Wholesaling in Australia
- Soft Drink and Pre-Packaged Food Wholesaling in Australia
- Grain Storage in Australia
International industries
- Flour Milling in the US
Table of Contents
About this industry
Industry definition
Operators in the industry grow rice, which is sold to millers for processing. The product is generally then onsold to retailers, wholesalers, food processors and food-service establishments to reach the final consumer.
What's included in this industry?
Rice growingCompanies
Purchase this report to view all major companies in this industry.
Related Terms
YIELDPRECISION FARMINGSUSTAINABLE DIVERSION LIMITS (SDLS)Industry Code
ANZSIC 0146 - Rice 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
Rice farmers have grappled with volatile conditions, as a surge in rainfall since 2019-20 fosters soaring production volumes. The performance of the industry relies on high w...
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
Volatile weather conditions have played havoc with product volumes in recent years. Revenue from long-grain rice shrunk because of droughts, with medium-grain rice taking a m...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
The majority of rice production occurs in the Murray and Murrumbidgee valleys of New South Wales due to the ideal growing conditions. This means the industry’s spread of esta...
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
Ricegrowers Limited controls product segmentation, creating competition among farmers for more profitable rice varieties. This is intensified during times of drought and redu...
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
The Rice Growing industry is highly fragmented. Most players are owner-operators and, in 2019-20, no rice farm reported having more than 20 full-time staff.
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
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is heavily reliant on access to water as rice is a water-intensive crop. Volatile rainfall in recent years has affected the industry's production volumes.
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
The industry’s profitability is primarily influenced by water availability and the cost of inputs like fertilisers. Over the past few years, higher domestic rice prices due t...
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 Rice Growing industry in Australia in 2024?
The market size of the Rice Growing industry in Australia is $268.7m in 2024.
How many businesses are there in the Rice Growing in Australia industry in 2024?
There are 180 businesses in the Rice Growing industry in Australia, which has declined at a CAGR of 2.7 % between 2019 and 2024.
Has the Rice Growing industry in Australia grown or declined over the past 5 years?
The market size of the Rice Growing industry in Australia has been growing at a CAGR of 45.9 % between 2019 and 2024.
What is the forecast growth of the Rice Growing industry in Australia over the next 5 years?
Over the next five years, the Rice Growing industry in Australia is expected to grow.
What does the Rice Growing in Australia include?
Rice growing and are part of the Rice Growing industry.
How competitive is the Rice Growing industry in Australia?
The level of competition is low and increasing in the Rice Growing industry in Australia.
