Spinning cotton: Industry revenue declined in light of falling cotton prices and appreciation of the US dollar

The Cotton Farming industry has experienced extremely volatile operating conditions over the past five years, and has experienced declines in revenue during the period. Due to large-scale fluctuations in demand and prices, industry profit margins have remained volatile, largely as the result of falling cotton prices. Furthermore, industry exports declined, partly due to the appreciation of the US dollar, as well as normalizing conditions in the global cotton market. Over the next five years, however, the industry is expected to return to modest growth, as the world price of cotton begins to stabilize after years of volatility. Barring any significant shocks, such as trade bans or floods, industry revenue is expected to slightly rise...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Exports have declined, partly due to the appreciation of the dollar, as well as normalizing conditions in the global cotton market
  • International competition often leads to very low profit, and even losses
  • The industry is expected to stabilize and experience limited growth
  • Industry Report - Industry Products Chapter

    Harvested cotton derives its value from the fiber, or lint, as well as from the seed. The two parts are separated from the husk during the ginning process. Cotton is grown as an annual plant in the United States, whereas it is grown perennially in more tropical climates. Cotton is typically planted between March and June and harvested in the final four months of the year. There are two varieties of cotton grown within the United States: upland and American Pima (also known as extra-long staple or ELS). The share of revenue generated by the two types of cotton is fairly stable, but fluctuates incrementally due to adjustments in market values and total planted acreage.Upland cottonThe predominant type of cotton grown in the United States is American upland. The...purchase to read more.

    Additional Insights for the Cotton Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cotton Farming Industry are

  • Appropriate physical growing conditions
  • Management of exchange rates for product sales: hedging
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Subsidies for cotton farming in the Cotton Farming industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Cotton Farming Industry?

    Farms in this industry primarily grow cotton, which is typically used in textile manufacturing, while the plant’s cottonseed is exploited for its oil and used in some livestock feeds. Moreover, at least half of all cotton produced domestically is exported to overseas textile producers.

    Industry Products
  • Upland cotton lint
  • American Pima
  • Cottonseed
  • Industry Activities
  • Cotton farming
  • Cottonseed production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Subsidies for cotton farming
  • World price of cotton
  • Price of synthetic fiber

  • Current Performance
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasingly competitive international market
  • Profitability and industry landscape
  • Potential opportunities
  • Table: Cotton Farming Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Crop Services
  • Animal Food Production
  • Margarine & Cooking Oil Processing
  • Corn, Wheat & Soybean Wholesaling

  • Key Selling Industries
  • Biotechnology
  • Corn, Wheat & Soybean Wholesaling
  • Crop Services
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fertilizer Manufacturing
  • Pesticide Manufacturing
  • Tractors & Agricultural Machinery Manufacturing
  • Water Supply & Irrigation Systems

  • Products & Services
  • Upland cotton lint
  • Cottonseed
  • American Pima
  • Chart: Cotton Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other exports
  • Exports to China
  • Exports to Vietnam
  • Garment textile manufacturing industries
  • Home furnishings textile manufacturing industries
  • Cottonseed processors
  • Chart: Major Market Segmentation for the Cotton Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Cotton Farming

  • Basis of Competition
  • Competition among cotton farmers
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Cotton Farming 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 Farming Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Subsidies for Cotton Farming (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    American Pima
  • A higher-value variety of cotton with fiber lengths of 1.5 inches or longer. Also known as extra-long staple (ELS), this variety is typically used to make sewing thread and premium linens.
  • American Upland
  • The dominant variety of cotton grown in the United States, often simply referred to as upland. It typically has fiber lengths between 1.0 and 1.25 inches.
  • Cooperative
  • A jointly owned, vertically integrated organization, also referred to as a co-op, that produces and distributes goods for the benefit of the owners.
  • Genetically Modified (Gm)
  • Organisms that have had their DNA altered through genetic engineering. A large proportion of plantings in the United States, and increasingly throughout the world, are of GM variety.
  • Ginning
  • A process carried out by a machine to separate the fibers from the seeds of picked cotton.
  • Herbicide
  • A substance used to destroy unwanted plants and weeds, while leaving a desired crop relatively unharmed.
  • Staple
  • The length of the cotton fiber.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Cotton Farming is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

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

    Contact Us

    Want to speak to a representative? Call us.