Overview

Spinning cotton: A huge spike in subsidies for cotton farms in 2015 will cause revenue to rise

IBISWorld’s Cotton Farming market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$6bn
Annual Growth
11-16
-6.3%
Annual Growth
16-21
Profit
Employment
18,757
Business
9,186

Industry Threats & Opportunities

  • Industry profit margins are expected to be less volatile, but profit will decrease
  • The industry is up against high external competition through its involvement in the international market
  • Domestic operators may have to compete in an increasingly competitive international market

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    Industry Analysis & Industry Trends

    The Cotton Farming industry has experienced extremely volatile operating conditions over the past five years. Due to large-scale fluctuations in demand and prices, industry profit margins have remained volatile. A fall in cotton prices after their artificial inflation in 2010 and 2011 reduced profit margins markedly. In the coming years, the industry is expected to consolidate. Barring any significant shocks, such as trade bans or floods, industry revenue is expected to slightly decline...

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    Industry Report - Industry Locations Chapter

    Cotton is produced in 17 southern states. Major concentrations of cotton plantings include areas of the Texas High and Rolling Plains; the Mississippi, Arkansas and Louisiana Delta; southern Georgia; and California's San Joaquin Valley. Typical cotton planting occurs between March and June, and typical harvesting takes place between August and December.

    Southeast and Southwest

    Cotton farms are densely concentrated in the Southwest and Southeast regions. Historically, these regions have been home to cotton growing and ginning. As a result, they have the most ginning capacity and other infrastructure, which makes processing, transportation and sale of the commodity easier. The..

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    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..

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    Industry Products

    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

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

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

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

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

  • Products & Markets
    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
  • Garment textile manufacturing industries
  • Home furnishings textile manufacturing industries
  • Exports to China
  • Cottonseed processors
  • Chart: Major Market Segmentation for the Cotton Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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 farmersExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cotton Farming Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Cotton Farming Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Subsidies for Cotton Farming (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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 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.

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