Cotton buds: Demand for cotton in overseas markets is set to return the industry to growth

Operators in the Cotton Growing industry have endured extreme revenue volatility and fluctuating profit margins over the past five years, with a range of external factors influencing industry performance. Unfavourable growing conditions, such as prolonged dry weather and reduced irrigation water stocks, over the three years through 2014-15 forced farmers to allocate less land to cotton, which is a water-intensive crop. Consequently, production dropped significantly, leading to revenue declines for most of that three-year period. However, resurgent rainfall and a global undersupply of cotton have allowed the industry to moderately recover over the three years through 2017-18. Industry revenue is expected to grow by 9.2% over 2017-18, to reach $1.6 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • External global factors determine the fortunes of Australian cotton growers
  • Poor rainfall conditions have negatively affected the industry and caused volatility
  • Global undersupply is expected to support demand for Australian cotton
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration in the industry is low. As most agricultural operators are family-run farms, market shares are often highly fragmented across the sector. The Cotton Growing industry is similar, although some major players run sizeable operations. The four largest companies are estimated to account for significantly less than 20% of industry revenue in 2017-18.Structurally, the industry is highly fragmented. The market price of cotton and cotton seed is set in contracts between growers and ginners, and is influenced by increasing price competition between large players. As the industry becomes more vertically integrated, achieving a high price from ginners will become increasingly difficult. The...purchase to read more.

    Additional Insights for the Cotton Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cotton Growing Industry are

  • Appropriate climatic conditions
  • Availability of irrigation water
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Demand from cotton ginning in the Cotton Growing industry impact industry performance..

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    What's in this report

    What is the Cotton Growing Industry?

    Farms in the industry grow cotton. Cotton is the white downy fibres grown on shrubby plants of the genus gossypium. These fibres are used to make textiles and other products.

    Industry Products
  • Cotton lint
  • Cottonseed
  • Industry Activities
  • Land cultivation
  • Cotton growing
  • Cotton baling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Demand from cotton ginning
  • World price of cotton
  • Trade-weighted index

  • Current Performance
  • Revenue trends
  • Australian cotton exports
  • Profitability, enterprises, and employment
  • Water availability
  • Industry regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue, profitability and participation
  • Major cotton producers
  • Production limitations
  • Table: Cotton Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cotton Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cotton Ginning

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Fertiliser Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Pesticide Manufacturing
  • Road Freight Transport
  • Water Supply

  • Products & Services
  • Cottonseed
  • Cotton lint
  • Chart: Cotton Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Cotton ginners to textile manufacturers
  • Cotton ginners to home-furnishing manufacturers
  • Cotton ginners to other markets
  • Cotton ginners to food and animal feed manufacturers
  • Chart: Major Market Segmentation for the Cotton Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cotton Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cotton Growing Industry

  • Industry Globalization
    CS Agriculture Pty Ltd,
  • Table: CS Agriculture Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cotton Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cotton Growing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cotton Picker
  • A tractor-like machine (vehicle) that automates cotton harvesting to reduce the harvest time.
  • Cottonseed
  • Seed of cotton plants; source of cottonseed oil.
  • Ginned Cotton
  • Picked cotton that is processed to separate the cotton from the seed.
  • Lint
  • Fine ravellings of cotton or linen fibres.
  • What Our Customers Say

    Why buy this report?

    The Cotton Growing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cotton Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cotton Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cotton Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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