Home > IBISWorld reveals the industries set to fly and fall in 2015-16

IBISWorld reveals the industries set to fly and fall in 2015-16

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The cotton growing industry is in for a wild 2016, as expected rapid growth reaches 19.2 per cent, according to analysts at IBISWorld.

Other industries set to boom in 2016 include internet publishing and broadcasting, organic farming, houseware retailing, and university and other higher education. 

However, some industries are in for a less than exciting year, as falls in global oil prices rush down revenue for petroleum refining and petroleum fuel manufacturing. Revenue is also set to fall for diamond and gemstone mining, printing and nightclubs.

IBISWorld projects that the cotton growing industry will fly in 2015-16, growing by 19.2 per cent to reach $879 million. The industry is expected to recover strongly from a poor performance in 2014-15, when revenue fell by 62.7 per cent.

A marginal increase in global cotton prices coupled with increased cotton production is expected to contribute to this substantial revenue growth in 2015-16. Additionally, the area of available land for cotton harvesting is anticipated to increase by 52.3 per cent, and lint production is expected to increase by almost 11 per cent.

According to IBISWorld senior industry analyst Spencer Little, "the cotton growing industry is highly volatile, with revenue movements ranging between 136.1 per cent growth and 62.7 per cent decline over the past five years."

The industry is affected by factors such as global cotton pricing and weather, which dictate farmers' decisions to grow cotton or a different crop.

This exposure to weather patterns contributes to substantial changes in the amount of cotton grown nationally." Growing conditions are expected to be far more favorable in 2015-16, as the industry recovers from a woeful performance in 2014-15," Little said.

Organic farming in Australia

The organic farming industry is forecast to fly in 2015-16, with revenue expected to grow by 5.6 per cent to reach $733.8 million. Demand for organic products in Australia and overseas has risen as consumers have become increasingly aware of the perceived health benefits and environmental effects of their food choices.

Rising health consciousness has contributed to the strong performance of organic farming. Other reasons consumers are turning to organic produce include a desire to avoid pesticides, environmental concerns and increasing accessibility. 

"The industry is expected to continue to grow strongly as organic consumption becomes more mainstream," Little said. The nation's two major supermarkets, Woolworths and Coles, now stock greater amounts and wider ranges of organic produce, making the purchase of organic products more convenient.

Australia has the largest area of organic farmland in the world, covering more than 22 million hectares. This is largely due to the vast amounts of land required for organic meat production, particularly beef, as animals need certified land to graze on and certification rules are strict.

According to Little, "Beef has been a major growth product over the past five years for the industry." Farmgate revenue for organic beef cattle increased by almost 127 per cent over the four years through 2013-14, according to the latest available data. 

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