$2.8bn
$XXX.Xm
12,514
807
$XXX.Xm
Cotton growing farms have endured extreme revenue volatility and fluctuating profit margins, with various external factors influencing industry performance. Substantially below-average rainfall reduced irrigation water availability over the two years through 2019-20, with some cotton growing regions reporting their lowest annual rainfall on record. Drought conditions, reported over most major cotton growing areas, caused industry revenue to plummet over those two years. However, significant increases in rainfall and water availability boosted revenue in the falling two years. Lower rain in 2023-24 has again weighed on industry revenue. Overall, industry revenue has skyrocketed by an annualised 12.1% over the past five years to total $2.8 billion in 2023-24, when revenue will plunge by an estimated 23.8%.External global factors like international cotton demand and regulatory changes in major cotton-producing countries determine the performance of Australian cotton growers. Although Australia is not a significant cotton producer on a global scale, the industry relies on exports through downstream markets. Cotton gins sell almost all Australian-grown cotton lint abroad because of the absence of domestic cotton spinning businesses, which is the next step in cotton fibre production after ginning. Overall, increased demand for Australian cotton from Asian textile industries has supported the industry.In the future, industry revenue is set to inch downward in line with lower output. Increasing competition for irrigation water and greater regulation of water extraction in the Murray-Darling Basin will threaten the industry. However, rising demand in export markets will aid cotton growers. Industry revenue is projected to fall at an annualised 0.5% over the five years through 2028-29 to total $2.7 billion.
Industry revenue has grown at a CAGR of 12.1 % over the past five years, to reach an estimated $2.8bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Australian Food & Fibre | 111.2 | |
Cubbie Station | 111.2 |
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Industry revenue is measured across several distinct product and services lines, including Cotton lint and Cottonseed. Cotton lint is the largest segment of the Cotton Growing in Australia.
High cotton lint prices have diminished cottonseed's revenue contribution
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.
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ANZSIC 0152 - Cotton Growing in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The industry depends heavily on water availability. Industry revenue soared over the two years through 2021-22 because of above-average rainfall and is set to sink in 2023-24...
Learn about an industry's products and services, markets and trends in international trade.
Cottonseeds account for the largest proportion of industry production in volume terms. However, cotton lint commands a much higher price, making it significantly more valuabl...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
New South Wales and Queensland are Australia's two most prominent cotton growing states. Together, the two states account for over 99% of industry businesses.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Industry businesses compete significantly with producers of alternate fibres. These fibres include natural fibres like wool and hemp and synthetic fibres.
Learn about the performance of the top companies in the industry.
The Cotton Growing industry has no Major Companies. Although several corporate cotton producers operate in the industry, most cotton farms are family-owned and independent.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The industry must comply with several regulations, particularly related to water usage. The Water Act 2007 governs water usage in the Murray-Darling Basin.
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Profit margins have surged in recent years. This trend can be attributed to improved output volumes in line with better rainfall conditions following the drought in 2019-20.
Including values and annual change:
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Key data sources in Australia include:
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These sources include:
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The market size of the Cotton Growing industry in Australia is $2.8bn in 2024.
There are 807 businesses in the Cotton Growing industry in Australia, which has grown at a CAGR of 0.4 % between 2018 and 2023.
The market size of the Cotton Growing industry in Australia has been growing at a CAGR of 12.1 % between 2018 and 2023.
Over the next five years, the Cotton Growing industry in Australia is expected to decline.
The biggest companies operating in the Cotton Growing market in Australia are Australian Food & Fibre and Cubbie Station
Cottonseed and Cotton lint are part of the Cotton Growing industry.
The company holding the most market share in Australia is Australian Food & Fibre.
The level of competition is moderate and steady in the Cotton Growing industry in Australia.