Wool Wholesaling in Australia - Industry Market Research Report

Sheepish: Low wool production and growing demand for lamb meat has unravelled industry performance

Wool wholesalers faced difficult trading conditions in recent years. Declines in wool production, caused by adverse sheep farming conditions, have reduced the volume of wool for wholesale. Moreover, dampened global demand for wool due to the COVID-19 pandemic's economic effects has reduced wool prices. Consequently, average industry profit margins have decreased in recent years. Poor trading conditions have encouraged moves towards market consolidation, like the high-profile acquisition of Rural Holdings Limited by Nutrien Ltd. Industry-wide revenue has been falling at an average annualised 8.6% over the past five years and is expected to total $2.9 billion in 2022-23, when revenue declines by an estimated 2.5%.

Industry businesses primarily wholesale wool. This involves purchasing bulk volumes of wool from farmers to sell to downstream markets.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.