Click go the shears: Growing domestic wool prices bulk up industry revenue

The Wool Wholesaling industry has displayed strong revenue growth over the past five years. While varying weather conditions have influenced domestic production volumes, strong price growth has supported the industry's expansion. Moreover, the depreciation of the Australian dollar over the period has improved the competitiveness of Australian wool in export markets, benefiting industry operators that act as agents of international trade. However, increased global competition from lower cost synthetic fibres has constrained overseas demand growth. In response, wholesalers have consolidated operations to reduce overhead costs and improve average profit margins...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
7.0%
Forecast Growth 19-24
Profit
Employment
650
Businesses
188
Market Share of Companies

Industry Threats & Opportunities

  • Increased market penetration of synthetic fibre alternatives has affected demand for wool
  • Developments in man-made fibres have affected export demand for wool over the period
  • Domestic wool production is projected to increase, supporting industry revenue growth
  • Industry Report - Industry Key Buyers Chapter

    The Wool Wholesaling industry displays low market share concentration. The industry's four largest players account for less than 40% of total industry revenue. The majority of industry participants are small, independent or family-owned businesses, rather than major corporations such as Agrium, the industry's largest player. Over half of industry participants do not employ any staff, relying instead on family members to carry out labour functions.The industry is highly fragmented due to the many different stages along the supply chain wholesalers can be required. Wool producers can sell wool directly to mills, pool produce between themselves, or if they do sell on to wholesalers, these wholesalers may be vertically integrated with international milling and textile companies. Thi...purchase to read more.

    Additional Insights for the Wool Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Wool Wholesaling are:

  • Output is sold under contract - incorporate long-term sales contracts
  • Having contacts within key markets
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Wool production and Domestic price of lamb in the Wool Wholesaling industry impact industry performance..

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    What's in this report

    What is the Wool Wholesaling Industry?

    Industry businesses primarily wholesale wool. This involves purchasing bulk volumes of wool from farmers to sell to downstream markets.

    Industry Products
  • Fine wool
  • Medium wool
  • Coarse wool
  • Industry Activities
  • Wool wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Wool production
  • Domestic price of lamb
  • Domestic price of wool
  • Trade-weighted index

  • Current Performance
  • Production and prices
  • Global wool demand
  • Changing structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Future prospects
  • Competition and prices
  • Industry structure
  • Table: Wool Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wool Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Synthetic and Natural Textile Manufacturing

  • Key Selling Industries
  • Grain-Sheep or Grain-Beef Cattle Farming
  • Sheep Farming
  • Sheep-Beef Cattle Farming
  • Wool Wholesaling

  • Products & Services
  • Fine wool
  • Medium wool
  • Coarse wool
  • Chart: Wool Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wool traders and buying houses
  • Other wholesalers
  • Wool processors
  • Chart: Major Market Segmentation for the Wool Wholesaling 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 Wool Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wool Wholesaling Industry

  • Industry Globalization
    Agrium SP Holdings Pty Ltd, Ruralco Holdings Limited,
  • Table: Agrium SP Holdings Pty Ltd - financial performance
  • Table: Ruralco Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wool Wholesaling 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 Wool Wholesaling 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
    Micron
  • A form of measurement used to express the diameter of a wool fibre. The lower the micron, the finer the wool.
  • Turn-Off Rate
  • The number of sheep or lambs the farmer sells to meat processors.
  • Wool Clip
  • The total quantity of wool shorn from a flock or flocks of sheep in a particular region or country in one year.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wool Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Wool Wholesaling:
    • 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 Wool Wholesaling 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 Wool Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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