Economy From ridesharing to dairy: The industries set to fly and fall in 2019
Matthew Elmas / Monday, January 14, 2019
It’s 2019, and as Australians struggle to keep to their New Year’s resolutions to hit the gym more and eat healthier, there is money to be made.
That’s according to industry analysis firm IBISWorld, which has released a list of the industries predicted to rise and fall over the next 12 months.
Demand for convenient and cost-efficient transport will drive an 81.7% increase in ridesharing services sales in 2018-19, IBISWorld predicts.
That will bring in $286.3 million for the industry in Australia, as more players begin to enter the market to challenge Uber’s stronghold.
“To compete with Uber, these companies have offered heavily discounted rates for consumers and attractive commission rates for drivers,” IBISWorld senior industry analyst Kim Do said.
Regulation over ridesharing in Australia’s largest cities has also been decreasing in recent years, helping to fuel growth.
Flying: Organic farming
Last year wasn’t easy for many of Australia’s farmers struggling with severe drought conditions across the country.
But IBISWorld believes many organic farmers will have an opportunity to cash in over the next 12 months, thanks again to growing health consciousness.
“Many consumers view organic food as being healthier than conventionally produced food, as it is free from chemical residues or preservatives, antibiotics, animal growth hormones and irradiation,” IBISWorld senior industry analyst Bao Vuong said.
The organic farming industry is tipped to grow by 18.2% in the 2018-19 financial year.
Falling: Toy and game retailing
It’s been a tough few years for the retail sector, with specialist categories emerging as some of the hardest hit business types.
Toy and game retailers have not escaped the malaise, and according to IBISWorld, will suffer a 15.9% decline in revenue in 2018-19, down to $740.9 million.
Last year Toys ‘R’ Us Australia shut down, which is driving the decline.
“Prior to its demise, Toys ‘R’ Us was the largest retailer in the industry, with a market share of over 20%. However, the company’s decline has accelerated the rate at which department stores and online-only retailers have captured market share, as consumers have shifted their spending away from industry retailers,” Do said.
Falling: Dairy manufacturing
The production of butter, some milks, yoghurt and other dairy products is going to take a hit in 2018-19, according to IBISWorld.
Revenue is slated to decline by 7.7% to $6.73 billion as the industry faces a curious case of both declining production volumes and prices.
“The amount of butter manufactured has decreased significantly over the past two years as demand for other dairy-based products, such as milk powder and full-cream milk, have reduced the availability of milk fat for the industry,” Do said.
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Matthew is the news editor at SmartCompany.