Industries with the Biggest Increase in Profit Margin in Australia in 2023

1. Superannuation Funds in Australia

Percentage Point Increase for 2023: 44.0pp

Significant global market volatility has affected invest incomes for superannuation funds in recent years. The initial COVID-19 outbreak and subsequent economic uncertainty, including inflationary pressures, saw revenue for funds fluctuate dramatically. Superannuation fund revenue is expected to increase at an annualised 0.7% over the five years through 2022-23, to total $230.1 billion, although the period has seen significant volatility. Superannuation fund's total assets are a more accurate indicator of the industry's size, with assets expected to grow at an annualised 3.4% over the same period, to $3.5 trillion. Continued incremental increases to the Superannuation Guarantee Scheme have boosted contributions to... Learn More

2. Coal Mining in Australia

Percentage Point Increase for 2023: 33.3pp

Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown coal used domestically for electricity generation in Victoria.

Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More

3. Liquefied Natural Gas Production in Australia

Percentage Point Increase for 2023: 24.0pp

Liquefied natural gas (LNG) production has rapidly expanded, as project development has increased the scale and production capacity of the industry. Australian liquefied natural gas (LNG) exports have increased from 20.0 million tonnes in 2010-11 to 80.9 million tonnes in 2022-23. LNG revenue is expected to rise at an annualised 20.7% over the five years through 2022-23, to $90.3 billion.

The wave of project development that occurred across the industry over the past decade has now concluded. Ten LNG facilities are now operational, including the Prelude and Ichthys projects, which shipped their first cargoes in 2018-19. Together, the industry's 10 LNG... Learn More

4. Water Passenger Transport in Australia

Percentage Point Increase for 2023: 21.1pp

The Water Passenger Transport industry struggled with the effects of the COVID-19 pandemic over the past few years. Passenger numbers collapsed during periods of heavy government restrictions on movements, including lockdowns and state border closures, which heavily restricted demand for transport services nationwide. Water passenger transport services often rely heavily on tourists for patronage, which left the industry especially vulnerable during this period of uncertainty. Australia's international border was closed from March 2020 to February 2022 and tourist activity collapsed. These developments contributed to a sharp decline in revenue and profitability in 2019-20 and 2020-21. Overall, industry revenue is expected... Learn More

5. Lithium and Other Non-Metallic Mineral Mining in Australia

Percentage Point Increase for 2023: 20.4pp

Spodumene concentrate (lithium ore) has become by far the dominant product in the Lithium and Other Non-Metallic Mineral Mining industry over the five years through 2023-24. Spodumene concentrate is still mainly exported to China for further processing, but major mining firms have started to use it domestically to refine lithium hydroxide. Spodumene concentrate output has increased over the past five years, particularly over the three years through 2023-24. While production is growing strongly, surging demand is behind the largely price-driven growth, as strong demand from the Chinese electric vehicle market and lithium stockpiling is prompting a spike in world prices.... Learn More

6. Inbound Tour Operators in Australia

Percentage Point Increase for 2023: 17.6pp

Inbound tour operators primarily arrange and assemble travel packages, combining domestic tourism products like accommodation, transport, scenic tours and meals for overseas travel wholesalers and retailers. Revenue mainly depends on the number of inbound tourists visiting Australia. As such, the COVID-19 pandemic and the Federal Government's inbound travel restrictions slashed tourist numbers from March 2020 to February 2022. Over the five years through 2022-23, industry revenue is expected to tumble at a compound annual rate of 10.9% to $321.1 million. However, this trend includes a significant 260.4% surge in revenue over 2022-23 as Australia's international border reopens and a flood... Learn More

7. Oil and Gas Extraction in Australia

Percentage Point Increase for 2023: 16.7pp

Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.

Australia's natural gas production, which makes up most of the industry has soared over the past decade as new gas fields have been developed to feed Australia's liquefied natural gas (LNG) facilities. Global trade in LNG has expanded with growing demand for LNG in Asian markets and weakness in the... Learn More

8. Aquaculture in Australia

Percentage Point Increase for 2023: 15.1pp

The Aquaculture industry has expanded in recent years despite operators facing numerous challenges. Strong import penetration across the overall domestic fish and seafood market has hindered demand and prices for domestically produced fish and seafood. Aquaculture producers in Asian countries generally have lower operating costs and can therefore offer produce at a much lower price compared with domestic operators. However, the industry's sustainability and rising production volumes have allowed it to outperform wild-catch fishers recently. Industry-wide revenue has been growing at an average annualised 5.9% over the past five years and is expected to total $2.7 billion in 2023-24, when... Learn More

9. Cinemas in Australia

Percentage Point Increase for 2023: 14.7pp

Cinema operators have faced significant challenges in recent years. Intensifying competition from other sources of entertainment, such as SVOD services, has negatively affected demand. Volatile economic conditions have also made it difficult for cinema operators to boost patronage and average spend. In response, cinemas have tried to differentiate the cinema experience from other forms of entertainment. Operators have upgraded projection systems to the latest technology and renovated their cinemas to include more premium offerings, such as recliner seats and gourmet food and beverage options. However, public health measures implemented in response to the pandemic forced cinemas to close temporarily or... Learn More

10. Cotton Growing in Australia

Percentage Point Increase for 2023: 13.5pp

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... Learn More