Rock, Limestone and Clay Mining in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC B0919Revenue
$4.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
7,709
Businesses
1,011
Wages
$XXX.Xm
Rock, Limestone and Clay Mining in Australia industry analysis
Firms in the Rock, Limestone and Clay Mining industry have faced a mixed past couple of years, with a wide divergence in performance between the large players in the industry, and the small to medium size competitors. The entire industry is very reliant on construction activity in Australia, which was severely constrained by the COVID-19 outbreak and the subsequent global supply chain disruptions and cash rate rises. Overall, industry revenue is expected to fall at an annualised 1.0% over the past five years, including an expected 3.7% drop in 2023-24 to total an estimated $4.4 billion. Larger players in this industry were far better placed to manage the intersecting challenges thrown up by the COVID-19 outbreak. The three largest firms in this industry – Boral, Holcim and Hanson – are all vertically integrated construction material producers which operate in a range of industries. They operate industry-specific quarries strategically located on the urban fringes of major cities to service larger production systems, including concrete and asphalt production facilities. This dynamic places these firms in a far better market position to manage potentially volatile demand, price fluctuations and disruptions to supply chains. When most firms faced rising cost pressures in 2021-22 and 2022-23, vertically integrated firms like Boral were well placed to pass on these costs to customers through higher prices, while many smaller competitors struggled. Therefore, while Boral and Holcim posted an improvement in industry-specific earnings, on an industry-wide level, profit margins have trended downwards since 2018-19. The industry is projected to grow moderately over the next five years as it recovers from the economic effects of the COVID-19 pandemic, as capacity constraints ease over time and construction activity in Australia trends upwards. Industry revenue is forecast to increase at an annualised 1.0% over the five years through 2028-29, to $4.7 billion. Crushed rock volumes are forecast to grow, while cost pressures are projected to ease, fuelling an uptick in industry profitability. Yet, on the other hand, a recent surge in interest rates will shift the investment picture for governments, potentially weakening demand from large-scale infrastructure projects.
Trends and Insights
- Production volumes rely on the level of construction activity in Australia. Import competition is virtually non-existent, while export volumes are also negligible. A recent downturn in domestic construction has therefore weighed on industry-wide performance.
- Crushed rock and stone accounts for a dominant share of industry revenue. Despite faltering downstream demand from the construction division, crushed rock and stone is far and away the largest product segment in this industry.
- Given the industry’s reliance on construction, the bulk of industry revenue is generated in the eastern states. Melbourne and Sydney have large construction industries, which helps quarries in the industry save on transport costs.
- Internal competition is highly restricted because of the geographically concentrated nature of the industry. Given the low value nature of most of the industry’s products it is uneconomical to transport products long distances, which means that demand is sourced locally.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.0 % over the past five years, to reach an estimated $4.4bn in 2023.
Trends and Insights
As construction activity in Australia falters, mine and quarry output has suffered
- Construction related industries are the main users of crushed rock, stone, limestone and clay. Even the manufacturers that the industry supplies often supply construction projects.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
High prices and a gradual recovery in the Construction division will foster a moderate expansion
- A recent rise in prices is forecast to persist over the coming years, underwriting higher turnover as production volumes grow. Mines and quarries in the industry are on track to resolve their capacity constraints allowing improved output and enabling a moderate rise in revenue and higher profit margins.
Biggest companies in the Rock, Limestone and Clay Mining in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Holcim Participants (Australia) | 419.4 | |
Hanson Australia Holdings | 394.5 | |
Boral | 363.9 |
To view the market share and analysis for all 4 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 Crushed rock and stone, Dimension stone and Limestone. Crushed rock and stone is the largest segment of the Rock, Limestone and Clay Mining in Australia.
Trends and Insights
Demand for crushed rock and stone has slowed because of faltering construction activity
- The largest industry product segment is crushed rock and stone, which are used extensively by a range of construction and building companies for drainage, ballast, landscape use, erosion control, as a binder for concrete and asphalt and other applications.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Iron Ore Mining in Australia
- Gravel and Sand Quarrying in Australia
- Mining Support Services in Australia
- Lithium and Other Non-Metallic Mineral Mining in Australia
International industries
- Stone Mining in the US
- Sand & Gravel Mining in the US
- Stone Mining in Canada
- Sand & Gravel Mining in Canada
- Gravel and Sand Quarrying in New Zealand
Table of Contents
About this industry
Industry definition
Industry firms quarry a range of construction materials, including rock, dimension stone (such as marble, granite and slate), clay, limestone and dolomite. Firms may also crush or screen broken rock.
What's included in this industry?
Aggregate quarryingBentonite quarryingBuilding stone, slate and sandstone quarryingClay, cement clay and tile clay quarryingConstruction materials crushing or screeningDimension stone quarryingEarth, soil or filling quarryingGranite, limestone and marble quarryingRoad fill quarryingKaolin, chalk, dolomite and other quarryingCompanies
Holcim Participants (Australia)Hanson Australia HoldingsBoralPurchase this report to view all 4 major companies in this industry.
Related Terms
CRUSHED ROCKDIMENSION STONELIMESTONEHARD TO ABATEKAOLINIndustry Code
ANZSIC 0919 - Rock, Limestone and Clay Mining 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
Production volumes rely on the level of construction activity in Australia. Import competition is virtually non-existent, while export volumes are also negligible. A recent d...
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
Crushed rock and stone accounts for a dominant share of industry revenue. Despite faltering downstream demand from the construction division, crushed rock and stone is far an...
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
Given the industry’s reliance on construction, the bulk of industry revenue is generated in the eastern states. Melbourne and Sydney have large construction industries, which...
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
Internal competition is highly restricted because of the geographically concentrated nature of the industry. Given the low value nature of most of the industry’s products it ...
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 largest players in this industry are all vertically integrated construction material suppliers. The quarries that fall under this industry operate as crucial links in a l...
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 Holcim Participants (Australia)'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Hanson Australia Holdings's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Boral's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Holcim Participants (Australia), and factors influencing its performance in the industry
- Description and key data for Hanson Australia Holdings, and factors influencing its performance in the industry
- Description and key data for Boral, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The price of concrete is forecast to fall in 2023-24, which is likely to flow through to the industry through lower prices. Nevertheless, this drop is only marginal, which wi...
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
Rising cost pressures have weighed on profit margins over the past few years. A tight labour market and global supply chain disruptions led to a rise in cost pressures, which...
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 Rock, Limestone and Clay Mining industry in Australia in 2024?
The market size of the Rock, Limestone and Clay Mining industry in Australia is $4.4bn in 2024.
How many businesses are there in the Rock, Limestone and Clay Mining in Australia industry in 2023?
There are 1,011 businesses in the Rock, Limestone and Clay Mining industry in Australia, which has grown at a CAGR of 1.8 % between 2018 and 2023.
Has the Rock, Limestone and Clay Mining industry in Australia grown or declined over the past 5 years?
The market size of the Rock, Limestone and Clay Mining industry in Australia has been declining at a CAGR of 1.0 % between 2018 and 2023.
What is the forecast growth of the Rock, Limestone and Clay Mining industry in Australia over the next 5 years?
Over the next five years, the Rock, Limestone and Clay Mining industry in Australia is expected to grow.
What are the biggest companies in the Rock, Limestone and Clay Mining market in Australia?
The biggest companies operating in the Rock, Limestone and Clay Mining market in Australia are Holcim Participants (Australia), Hanson Australia Holdings and Boral
What does the Rock, Limestone and Clay Mining in Australia include?
Aggregate quarrying and Bentonite quarrying are part of the Rock, Limestone and Clay Mining industry.
Which companies have the highest market share in the Rock, Limestone and Clay Mining in Australia?
The company holding the most market share in Australia is Holcim Participants (Australia).
How competitive is the Rock, Limestone and Clay Mining industry in Australia?
The level of competition is moderate and steady in the Rock, Limestone and Clay Mining industry in Australia.
