Baled out: Increased prices are anticipated to support the industry over the next five years

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, caused industry revenue to decline steeply in 2014-15. Below average rainfall caused farmers to allocate less land to cotton, which is a water intensive crop. However, resurgent rainfall and increased price per bale paid to Australian farmers allowed the industry to recover over the three years through 2017-18. Rising global demand for cotton drove this price growth...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-5.8%
Forecast Growth 19-24
Profit
Employment
6,363
Businesses
739
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for Australian cotton from Asian textile manufacturers has supported industry revenue
  • Erratic weather conditions have caused revenue volatility over the past five years
  • New agricultural technologies are forecast to drive output improvements over the next five years
  • Industry Report - Industry Analysis Chapter

    A range of external factors such as water availability, technology improvements and global cotton supply have influenced the Cotton Growing industry over the past five years. Industry production has fluctuated throughout the period, with farmers allocating more or less land to cotton growing depending on farmland and trade conditions. Although cotton prices and yields have increased over the past five years, drought and limited water availability have caused the industry to contract over the period. Industry revenue is expected to decline at an annualised 5.8% over the five years through 2018-19, to $1.6 billion. This includes an expected 45.1% decline in 2018-19 as severe drought limits cotton production...purchase to read more.

    Additional Insights for the Cotton Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Cotton Growing 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. Downstream manufacturers use these fibres 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 and profit
  • Water availability and controversy
  • Enterprises and employment
  • Cotton exports
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue, profitability and participation
  • 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 cottonseed processors
  • Cotton ginners to other markets
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Cotton Growing

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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?

    IBISWorld’s Cotton Growing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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