Fleeced: Industry revenue falls as the national sheep flock declines

Operators in the Wool Scouring industry have faced a challenging operating environment over the past five years. A decline in the national sheep flock has caused domestic wool production to fall. Additionally, a sharp decline in wool prices over 2016-17 encouraged many sheep farms and wool traders to hold greasy wool to await better pricing in the future, rather than incur the cost of wool scouring. This trend also contributed to declines in wool supplied for scouring, combing and carding. Tough trading conditions encouraged consolidation among the industry's larger players, with the merger of Cavalier Wool Holdings and New Zealand Wool Services International's wool scouring business...read more.

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

Industry Threats & Opportunities

  • Tough trading conditions have encouraged industry consolidation over the past five years
  • The size of the national sheep flock has declined significantly over the past five years
  • Weak demand for wool from China is expected to limit the industry’s growth prospects
  • Industry Report - Industry Investment Chapter

    The Wool Scouring industry is highly capital-intensive. For every dollar paid as wages across the industry, an estimated $0.77 is invested in capital. Wool scouring, carding and combing are highly mechanised processes. A typical wool scouring facility will require labour to transport bales of wool with forklifts and to unload wool onto a conveyor belt or entry point for the automated scourer. From there, a sequence of equipment will wash the wool with water and detergents, often called wash liquor, to remove grease and other compounds such as dirt, sand and dust. The wool then passes through fresh water to thoroughly rinse the wool, before moving through drying machines. Investment in the breadth of required equipment makes depreciation costs comparatively high for the industry. Add...purchase to read more.

    Additional Insights for the Wool Scouring Industry

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

  • Production of premium goods/services
  • Proximity to key markets
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Domestic price of wool and Wool production in the Wool Scouring industry impact industry performance..

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    What's in this report

    What is the Wool Scouring in New Zealand Industry?

    Industry operators primarily scour wool, which includes carbonising, carding and combing wool. Wool wax and grease production are also included in the industry.

    Industry Products
  • Strong wool
  • Fine crossbred wool
  • Medium wool
  • Fine wool and other wool-based products
  • Industry Activities
  • Carded wool
  • Combed wool
  • Scoured wool
  • Wool grease
  • Wool wax
  • Unspun wool tops
  • Table of Contents

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

  • Current Performance
  • Upstream suppliers
  • Scouring consolidation
  • Downstream markets
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Production and prices
  • Concentration and competition
  • Participation and profit
  • Table: Wool Scouring Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Wool Wholesaling in New Zealand

  • Key Selling Industries
  • Heavy Machinery Repair and Maintenance in New Zealand
  • Industrial Machinery and Gaming Manufacturing in New Zealand
  • Sheep Farming in New Zealand
  • Sheep-Beef Cattle Farming in New Zealand

  • Products & Services
  • Strong wool
  • Fine crossbred wool
  • Medium wool
  • Fine wool and other wool-based products
  • Chart: Wool Scouring Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other export markets
  • Exports to China
  • Domestic markets
  • Chart: Major Market Segmentation for the Wool Scouring Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Wool Scouring

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Cavalier Wool Holdings Limited, Chargeurs Wool (NZ) Limited,
  • Table: Cavalier Wool Holdings Limited - financial performance
  • Table: Chargeurs Wool (NZ) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wool Scouring 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 Scouring Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Greasy Wool
  • Wool shorn from a sheep that has yet to undergo processing, containing grease and other contaminants.
  • Lanolin
  • Wool wax or grease is a by-product of wool scouring that is used in skincare products.
  • Wool Tops
  • Long wool fibres resulting from the combing process, which are suitable for wool spinning.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wool Scouring in New Zealand 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
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    This report on Wool Scouring in New Zealand:
    • 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 Scouring in New Zealand 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 Scouring in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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