Industries with the Biggest Increase in Profit Margin in Australia in 2024

1. Buy Now Pay Later in Australia

Percentage Point Increase for 2024: 50.4pp

Technology is up-ending the way consumers manage their finances and pay for goods. In this shifting landscape, buy now pay later (BNPL) services have emerged to challenge traditional credit cards and short-term loans. Convenient BNPL services have been well integrated into the buying cycle, as consumers, particularly younger demographics, embrace payment instalments at the point-of-sale. Booming online shopping, amid extended COVID-19 lockdowns, has further fuelled merchant and consumer uptake of BNPL platforms. Revenue has surged by an anticipated 29.3% over the past five years, with a 4.5% rise in 2022-23, to reach $1.1 billion.

Consumers can flip between BNPL platforms, which... Learn More

2. Domestic Airlines in Australia

Percentage Point Increase for 2024: 29.8pp

Trading conditions have been mixed for the Domestic Airlines industry over the past five years. The COVID-19 pandemic has significantly restricted air travel volumes over the three years through 2021-22. Most state governments closed their borders in early 2020, all but halting interstate travel. Industry revenue further declined in 2020-21 as COVID-19 restrictions continued to limit air travel. However, monthly passenger numbers rose steadily during the same year, offering some relief to airlines. Industry demand returned to growth in 2021-22. The outbreaks of the Delta and Omicron COVID-19 variants severely limited passenger numbers over the six months through December 2021,... Learn More

3. Battery Material Mining in Australia

Percentage Point Increase for 2024: 17.1pp

Battery material mining revenue has soared, as battery manufacturers have sought to lock in supply to meet surging demand. Rising demand for electric vehicles has led global automakers to offer a growing range of electric vehicles, particularly in China. The supply of battery materials has become increasingly tight, driving demand for Australian battery material exports. Overall, industry revenue has grown at an annualised 55.9% over the past five years, to $16.9 billion. This includes a rise of 198.6% in 2022-23, as lithium export prices skyrocket.

Several new enterprises have entered the industry by developing lithium mines in Western Australia. These firms... Learn More

4. Airport Operations in Australia

Percentage Point Increase for 2024: 16.8pp

The Airport Operations industry features several dominant players, with most aircraft movements going through Australia's major airports in Sydney, Melbourne and Brisbane. Airport operators generate revenue by charging landing and terminal fees to domestic and international airlines. Airports also receive rental income from airlines and retail stores for space leased on their premises. Airservices Australia, the industry authority that controls Australian airspace, earns revenue on a per-aircraft basis. That's why the volume of aircraft movements and passengers carried strongly correlates with industry growth.

Leading into the COVID-19 pandemic, rising inbound tourist numbers and strong growth in outbound international travel helped fuel... Learn More

5. Casinos in Australia

Percentage Point Increase for 2024: 15.1pp

The Casinos industry in Australia has faced a period of unprecedented crises, with a spate of government inquiries endangering the casino licenses of the largest operators in the industry. These issues compounded a period of highly restricted patronage following the COVID-19 outbreak, as border closures and lockdowns sharply reduced turnover at all casinos in Australia. Overall, these disruptions have contributed to an annualised revenue decline of 2.5% over the five years through 2022-23, to an anticipated $5.8 billion. Yet, this includes an expected surge in 2022-23 of 45.7%, as all pandemic restrictions are lifted and casinos return to full operational... Learn More

6. Online Travel Bookings in Australia

Percentage Point Increase for 2024: 12.6pp

The Online Travel Bookings industry is on the road to recovery, following the pandemic downturn. In 2019-20 and 2020-21, demand collapsed as federal and state governments imposed heavy travel restrictions. From March 2020 to February 2022 Australia's international border was closed and the number of international visitors to Australia plummeted. To generate revenue, online travel booking providers were forced to rely on the domestic tourist market, but state border closures and intermittent lockdowns heavily disrupted revenue from domestic travellers. Industry-wide revenue and profitability fell sharply. As restrictions were lifted in 2021-22, these trends reversed. Overall, revenue is anticipated to fall... Learn More

7. Lithium and Other Non-Metallic Mineral Mining in Australia

Percentage Point Increase for 2024: 9.8pp

Spodumene concentrate (lithium ore) has become by far the dominant product in the Lithium and Other Non-Metallic Mineral Mining industry over the five years through 2023-24. Spodumene concentrate is still mainly exported to China for further processing, but major mining firms have started to use it domestically to refine lithium hydroxide. Spodumene concentrate output has increased over the past five years, particularly over the three years through 2023-24. While production is growing strongly, surging demand is behind the largely price-driven growth, as strong demand from the Chinese electric vehicle market and lithium stockpiling is prompting a spike in world prices.... Learn More

8. Brothel Keeping and Sex Worker Services in Australia

Percentage Point Increase for 2024: 9.7pp

While sexual services have historically proven resistant to economic slowdowns, the Brothel Keeping and Sex Worker Services industry has been negatively affected by the COVID-19 pandemic, a mixed economic environment, and greater external competition over the past five years. Many sex workers have loyal clients that are likely to forgo other discretionary spending before reducing their spending on sexual services. However, industry revenue has declined as average real household discretionary income has fallen, and as external competition from online substitutes, such as online pornography and some dating apps, has risen. As a result, industry revenue is expected to fall at... Learn More

9. Inbound Tour Operators in Australia

Percentage Point Increase for 2024: 8.7pp

Inbound tour operators primarily arrange and assemble travel packages, combining domestic tourism products like accommodation, transport, scenic tours and meals for overseas travel wholesalers and retailers. Revenue mainly depends on the number of inbound tourists visiting Australia. As such, the COVID-19 pandemic and the Federal Government's inbound travel restrictions slashed tourist numbers from March 2020 to February 2022. Over the five years through 2022-23, industry revenue is expected to tumble at a compound annual rate of 10.9% to $321.1 million. However, this trend includes a significant 260.4% surge in revenue over 2022-23 as Australia's international border reopens and a flood... Learn More

10. Home and Contents Insurance in Australia

Percentage Point Increase for 2024: 8.6pp

The Home and Contents Insurance industry's revenue has continued to climb in the face of hefty claims expenses and consumer budget pressures. The high number of expensive claims arising from floods, cyclones and bushfires has slimmed industry profitability. Natural disasters' high frequency and magnitude have also stoked demand for home and contents risk coverage. Insurers have raised premiums to tap into this demand, cope with higher claims risks and save their profit margins. A higher-than-average number of claims and higher claim values have led insurers to raise premiums to maintain profitability. Home and Contents Insurance revenue jumped at an annualised... Learn More