Splitting at the seams: Volatile demand and rainfall constrain industry revenue

The Cotton Ginning industry is an important part of the agricultural support services sector and the national cotton sector. Raw cotton must be processed into lint and seeds by a cotton gin before either product can be used. The industry's performance is closely linked to the Cotton Growing industry. It is also indirectly affected by factors such as climatic conditions, water supply regulation, fluctuations in global cotton consumption, and cotton stockpiling. The variability of these factors has caused significant industry revenue volatility over the past five years. Overall, industry revenue is expected decline at an annualised 0.4% over the five years through 2018-19, to $2.9 billion. This includes forecast growth of 17.6% in 2018-19...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Variable cotton growing conditions have increased industry revenue volatility
  • Demand from China for imported cotton lint has diminished over the past five years
  • World cotton prices are forecast to rise as global demand continues to exceed supply
  • Industry Report - Industry Locations Chapter

    Ginning is concentrated around major cotton growing regions. Over 90% over Australian cotton is grown in the Murray-Darling Basin. Cotton is a water-intensive crop and therefore needs to be grown in areas with either sufficient rainfall, or sufficient ground or surface water. It also tends to thrive in warmer climates. Much of Victoria is too cold during parts of the year for cotton growing to be a viable endeavour. Consequently, almost all of Australia's cotton is grown in New South Wales and Queensland. Cotton gins are typically situated in close proximity to cotton farms, with multiple farms feeding into a single ginning operation. Therefore, gin locations reflect the distribution of the Cotton Growing industry...purchase to read more.

    Additional Insights for the Cotton Ginning Industry

    IBISWorld has determined the most important Key Success Factors for the Cotton Ginning are:

  • Superior financial management and debt management
  • Automation - reduces costs, particularly those associated with labour
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as World price of cotton and Demand from cotton growing in the Cotton Ginning industry impact industry performance..

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    What's in this report

    What is the Cotton Ginning Industry?

    Firms in the industry are mainly engaged in ginning and trading cotton. Ginning separates the cotton fibres (lint) from the cottonseed. Cleaned lint is pressed into bales and sold to cotton spinners and textile manufacturers.

    Industry Products
  • Cotton lint destined for China
  • Cotton lint destined for other export markets
  • Cottonseeds
  • Cotton lint destined for the domestic market
  • Industry Activities
  • Cotton ginning
  • Table of Contents

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

  • Current Performance
  • Industry dynamics
  • Production and revenue
  • Global cotton supply
  • Export trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Cotton production
  • Demand for Australian cotton
  • Participation and profit
  • Table: Cotton Ginning Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Cooking Oil and Margarine Manufacturing
  • Cut and Sewn Textile Product Manufacturing
  • Synthetic and Natural Textile Manufacturing
  • Beef Cattle Feedlots

  • Key Selling Industries
  • Cotton Growing

  • Products & Services
  • Cotton lint destined for other export markets
  • Cotton lint destined for China
  • Cottonseeds
  • Cotton lint destined for the domestic market
  • Chart: Cotton Ginning Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Garment textile manufacturers
  • Home-furnishings textile manufacturers
  • Cottonseed processors
  • Other markets
  • Chart: Major Market Segmentation for the Cotton Ginning 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 Cotton Ginning

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Namoi Cotton Limited, LDC Enterprises Australia Pty Limited, Olam Investments Australia Pty Ltd,
  • Table: Namoi Cotton Limited - financial performance
  • Table: LDC Enterprises Australia Pty Limited - financial performance
  • Table: Olam Investments Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cotton Ginning 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 Ginning Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The seed of cotton plants, and the source of cottonseed oil.
  • Gin
  • A machine that separates the cottonseeds from raw cotton fibres.
  • Lint
  • Fine ravellings of cotton or linen fibres.
  • Price-Per-Bale
  • Cotton is typically priced in per bale terms, where one bale is equivalent to 227 kilograms
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cotton Ginning market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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