The five Aussie industries set to boom in 2016

Some Australian industries can expect a far more optimistic outlook than others, with the lucky ones set to have a bumper year ahead in 2016.

The cotton industry is experiencing rapid growth while organic farming and internet publishing are also expected to boom further in coming months, according to a recent IBISWorld report.

Five industries to explode in 2015

 

Source: IBISWorld

Cotton growing

IBISWorld projects that the cotton growing industry will fly in 2015-16, growing by 19.2 per cent to reach $879.0 million.

A marginal increase in global cotton prices coupled with increased cotton production is expected to contribute to this substantial revenue growth in 2015-16.

Also read: The five Aussie industries expected to sink in 2016

Additionally, the area of available land for cotton harvesting is anticipated to increase by 52.3 per cent, and lint production is expected to increase by almost 11 per cent.

According to IBISWorld senior industry analyst Spencer Little, “the cotton growing industry is highly volatile, with revenue movements ranging between 136.1% growth and 62.7% decline over the past five years.”

Internet publishing and broadcasting

Over the past five years, consumers have continued to migrate towards the internet for services previously provided in newspapers, such as real estate, car and job advertising.

This growing consumer demand is projected to drive revenue growth of 9.4 per cent in 2015-16, to reach $1.7 billion.

Also read: Netflix becomes 'global TV network' in 190 countries

The main source of industry growth in the current year is expected to be the entrance of popular video streaming websites, such as Netflix, Stan and Presto.

The global brand recognition of Netflix has enabled it to enter the Australian industry with an in-built advantage over competitors – Netflix has built its local business using a completely digital marketing campaign, as there was no need for TV, radio or print advertising.

Organic farming

The organic farming industry is forecast to rocket in 2015-16 – with revenue expected to grow by 5.6 per cent to reach $733.8 million – owing to rising demand for organic products in Australia and overseas as consumers become increasingly aware of perceived benefits on their health and the environment.

Rising health consciousness has contributed to the strong performance of organic farming.

Also read: Consumers buying more organic products

“The industry is expected to continue to grow strongly as organic consumption becomes more mainstream,” Little said.

Houseware retailing

Over the past five years, demand for houseware products has grown due to a rise in residential building construction, an increase in new dwelling commencements and alterations to existing dwellings.

“Industry revenue growth has been further supported by rising household discretionary income, which has boosted consumers’ ability to spend on housewares,” Little explained.

Also read: Woolies loses Masters case battle, faces $11m plus in damages

Housewares revenue is projected to grow by 5.1 per cent in 2015-16, but by only 1.9 per cent in 2016-17.

The slower growth in 2016-17 can be attributed to a projected fall in consumer spending and a decline in residential building construction activity, amid fears of an oversupply in multi-unit apartments.

University and higher education

Revenue in the university and other higher education industry is expected to grow at a compound annual rate of 4.6 per cent over the five years through 2015-16, to reach $29.6 billion, driven by higher student enrolments from both both domestic and international students.

International student enrolments grew by 8.1 per cent in 2014, driven by a loosening in student visa arrangements and a depreciation of the Australian dollar.

Also read: Australia’s five most valuable degrees

As more funding is required for the rapidly expanding higher education system, international students present universities with an opportunity to boost revenue – therefore international student enrolments are anticipated to rise over the next five years.