Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in Australia in 2024
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View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2024: 7.6
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
Business Environment Risk for 2024: 7.6
The Basic Inorganic Chemical Manufacturing industry's performance has been highly volatile in recent years. With the industry focused on international markets, volatility in export markets has weighed on the industry's performance. Marked fluctuations in global chemical commodity prices have added to the industry's volatility.
The industry is expected to expand by an annualised 8.4% over the five years through 2022-23, to total $3.4 billion. Estimated growth of 37.9% in 2022-23, in view of record-high prices, has somewhat distorted this rate. This apparent strong performance also hides the effects of ongoing structural changes in Australia's wider industrial economy and the impact of... Learn More
Business Environment Risk for 2024: 7.2
The Fertiliser Manufacturing industry ensures that Australia's agricultural production systems are economically efficient in the short term and sustainable in the long term. Fertiliser manufacturers supply phosphorus, nitrogen, potassium and sulphur fertilisers, and mix of high-analysis blends and trace elements. Between six and seven million tonnes of fertiliser are sold each year. However, only half of this is manufactured locally with the remainder imported. This means that the industry is susceptible to global supply side shocks, with little control over fertiliser prices. Recently, the COVID-19 pandemic, the European natural gas crisis and the Russia-Ukraine conflict have played havoc with global... Learn More
Business Environment Risk for 2024: 7.0
Grain growing in Australia is export-oriented and produces wheat, barley, canola, other grains and oilseeds. Revenue has fluctuated over the past five years, due to volatile weather conditions, global grain prices and crop supplies. Revenue is expected to grow at an annual average rate of 17.3% over the five years through 2022-23, to reach an estimated $27.7 billion. As Russia is a major producer of fertiliser, a key industry input, its price has significantly risen in 2021-22 due to the Russia-Ukraine conflict. Industry profitability has therefore fallen over the period as purchase costs have increased. However, higher output volumes due... Learn More
Business Environment Risk for 2024: 7.0
Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.
Over the past decade, strong economic growth in China has... Learn More
Business Environment Risk for 2024: 6.9
Gold ore mining revenue has soared, as central bank purchases and investor demand for safe-haven assets have driven gold prices higher. A weaker Australian dollar also lifted returns for domestic producers, with gold priced in US dollars in global markets.
Gold mining is a well-established industry in Australia, and production volumes have grown over much of the past decade, contributing to an annualised 4.0% increase in gold ore mining revenue through the end of 2022-23, to $22.7 billion. Gold is considered a counter-cyclical commodity and safe-haven asset during national and global economic uncertainty, with rocky US-China trade negotiations, the COVID-19 pandemic... Learn More
Business Environment Risk for 2024: 6.9
Operators in the Grain Storage industry have benefited from strong growth in grain production volumes over the past five years. Industry revenue is expected to rise at an annualised 5.7% over the five years through 2022-23, to $3.1 billion. The industry is characterised by extreme revenue volatility, which creates difficult conditions for operators. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall have influenced industry demand and earnings. For example, a record national grain harvest during 2020-21 significantly increased demand for grain storage. However, dry and hot weather conditions hampered the industry early... Learn More
Business Environment Risk for 2024: 6.9
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
Business Environment Risk for 2024: 6.7
The Natural Rubber Product Manufacturing industry has faced considerable volatility in recent years, and has been contracting as many manufacturers exited thanks to stiff economic pressure. These manufacturers grappled with intense competition from low-cost overseas producers while battling the rise in substitute goods made from synthetic rubbers. Despite these challenges, the industry minimised profit losses by focusing on niche product offerings. Enhanced product quality from imported goods and intense price wars have only intensified the struggle for manufacturers. Revenue has declined at an annualised 0.6% over the five years through 2023-24 to $1.3 billion. This slowing includes a 6.8% drop... Learn More
Business Environment Risk for 2024: 6.7
Grain is one of Australia's most valuable agricultural products. Operators in the Cereal Grain Wholesaling industry play a major role in distributing grain from farmers to domestic and international end markets. Revenue is expected to increase at an annualised 6.8% over the five years through 2023-24 to an estimated $31.6 billion. This trend includes an expected decline of 27.9%% in 2023-24 as rainfall is likely to plummet. In response to volatile production volumes, profitability is expected to fluctuate over the five years through 2023-24. However, improved downstream demand and record-high prices have allowed many wholesaling services to grow their profit... Learn More
Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Fastest Declining Industries in Australia by Revenue Growth (%) in 2024
VIEW ARTICLEBased on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Least Risky Industries in Australia in 2024
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