Wool Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: May 2023
ANZSIC F3311Revenue
$2.9bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
597
Businesses
168
Wages
$XX.Xm
Wool Wholesaling in Australia industry analysis
Wool wholesalers faced difficult trading conditions in recent years. Declines in wool production, caused by adverse sheep farming conditions, have reduced the volume of wool for wholesale. Moreover, dampened global demand for wool due to the COVID-19 pandemic's economic effects has reduced wool prices. Consequently, average industry profit margins have decreased in recent years. Poor trading conditions have encouraged moves towards market consolidation, like the high-profile acquisition of Rural Holdings Limited by Nutrien Ltd. Industry-wide revenue has been falling at an average annualised 8.6% over the past five years and is expected to total $2.9 billion in 2022-23, when revenue declines by an estimated 2.5%. The growing global demand for lamb has contributed to constrained wool volumes for wholesalers as farmers have increased their turn-off rates (the number of sheep and lambs sold for slaughter to produce meat). The rates have increased in response to rising lamb prices and as a cost-saving measure during prolonged periods of drought over the two years through 2019-20. Subdued activity in China's textile manufacturing sector, one of the largest end markets for Australian wool, following the onset of the COVID-19 pandemic, has significantly constrained demand for wool wholesalers in recent years. Declining global demand has also contributed to a sharp decline in wool prices in 2019-20 and 2020-21, which rebounded partially in 2021-22.Wool prices are poised to climb over the next two years as global downstream demand, particularly from China, continues improving following the economy's recovery from the COVID-19 pandemic's effects and inflationary pressures begin to ease. Rising prices will provide an opportunity for wool wholesalers to expand their profit margins, although high price competition is set to limit industry-wide profitability growth. Wool production will remain relatively steady and below long-term averages over the coming years as sheep farmers maintain high turn-off rates in response to high lamb demand and prices. Due to the rebound in wool prices, industry revenue is forecast to grow at an annualised 3.3% over the five years through 2027-28 to total $3.5 billion. Nevertheless, improvements to alternative fibres are on track to limit the competitiveness of Australian wool in the global market, weighing on the industry's long-term performance.
Trends and Insights
- Falling wool production and plummeting prices caused steep revenue declines in 2019-2020 and 2020-21. Production and price conditions are improving, aiding a slight recovery in industry revenue.
- The Wool Wholesaling industry trades in a range of wool products, differentiated by fineness. Selective breeding and falling wool prices have boosted the production and demand for finer wool.
- Wool wholesalers are concentrated in New South Wales and Victoria, which comprise more than 60% of industry establishments. The majority of sheep farms are located in these states.
- The Wool Wholesaling industry is highly competitive. Smaller firms can compete with one another at varying stages of the supply chain, with few operators having clear advantages over one another.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 8.6 % over the past five years, to reach an estimated $2.9bn in 2023.
Trends and Insights
Plummeting wool prices have driven down wool wholesaling revenue
- Wool prices plunged over the two years through 2020-21, pushing down industry revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Global demand for wool is poised to rebound partially over the next two years
- Most Australian wool is exported, and the vast majority is consumed by China, where it is used as an input material in China's expansive textile sector.
Biggest companies in the Wool Wholesaling in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
Agrium SP | 574.8 | |
DP World Australia | 117.8 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Superfine wool, Fine wool and Medium wool. Superfine wool is the largest segment of the Wool Wholesaling in Australia.
Trends and Insights
Lower wool prices have driven up demand for higher quality superfine wool
- Superfine wool has the smallest diameter wool fibres and is considered very high quality.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Sheep Farming in Australia
- Shearing, Cropping and Agricultural Support Services in Australia
- Environmental Science Services in Australia
- Sheep-Beef Cattle Farming in Australia
International industries
- Wool Wholesaling in New Zealand
Table of Contents
About this industry
Industry definition
Industry businesses primarily wholesale wool. This involves purchasing bulk volumes of wool from farmers to sell to downstream markets.
What's included in this industry?
Fine woolSuperfine woolMedium woolCoarse woolCompanies
Agrium SPDP World AustraliaPurchase this report to view all 2 major companies in this industry.
Related Terms
ECOMMERCETURN-OFF RATEMICRONIndustry Code
ANZSIC 3311 - Wool Wholesaling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Falling wool production and plummeting prices caused steep revenue declines in 2019-2020 and 2020-21. Production and price conditions are improving, aiding a slight recovery ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The Wool Wholesaling industry trades in a range of wool products, differentiated by fineness. Selective breeding and falling wool prices have boosted the production and deman...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Wool wholesalers are concentrated in New South Wales and Victoria, which comprise more than 60% of industry establishments. The majority of sheep farms are located in these s...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
The Wool Wholesaling industry is highly competitive. Smaller firms can compete with one another at varying stages of the supply chain, with few operators having clear advanta...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Agrium SP Holdings Pty Limited, which operates in the industry through its Nutrien Ag Solutions brand, is the industry’s largest player. The company’s market share has expand...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Agrium SP's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of DP World Australia's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Agrium SP, and factors influencing its performance in the industry
- Description and key data for DP World Australia, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Most wool wholesalers are relatively free from regulatory interference. However, they must still collect the wool levy paid by wool producers and forward proceeds to the gove...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Like in all wholesaling industries, purchase costs dominate the Wool Wholesaling industry's cost structure. The industry has low profit margins and requires large sales volum...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Wool Wholesaling industry in Australia in 2024?
The market size of the Wool Wholesaling industry in Australia is $2.9bn in 2024.
How many businesses are there in the Wool Wholesaling in Australia industry in 2023?
There are 168 businesses in the Wool Wholesaling industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Wool Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Wool Wholesaling industry in Australia has been declining at a CAGR of 8.6 % between 2018 and 2023.
What is the forecast growth of the Wool Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Wool Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Wool Wholesaling market in Australia?
The biggest companies operating in the Wool Wholesaling market in Australia are Agrium SP and DP World Australia
What does the Wool Wholesaling in Australia include?
Fine wool and Superfine wool are part of the Wool Wholesaling industry.
Which companies have the highest market share in the Wool Wholesaling in Australia?
The company holding the most market share in Australia is Agrium SP.
How competitive is the Wool Wholesaling industry in Australia?
The level of competition is high and increasing in the Wool Wholesaling industry in Australia.
