Industries with the Biggest Increase in Profit Margin in Australia in 2023

1. Coal Mining in Australia

Percentage Point Increase for 2023: 33.3pp

Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown coal used domestically for electricity generation in Victoria.

Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More

2. Superannuation Funds in Australia

Percentage Point Increase for 2023: 26.1pp

Significant global market volatility has affected invest incomes for superannuation funds in recent years. The initial COVID-19 outbreak and subsequent economic uncertainty, including inflationary pressures, saw revenue for funds fluctuate dramatically. Superannuation fund revenue is expected to increase at an annualised 0.7% over the five years through 2022-23, to total $230.1 billion, although there was significant volatility over the period. Superannuation fund's total assets are a more accurate indicator of the industry's size, with assets expected to grow at an annualised 3.4% over the same period, to $3.5 trillion. Continued incremental increases to the Superannuation Guarantee Scheme have boosted contributions... Learn More

3. Liquefied Natural Gas Production in Australia

Percentage Point Increase for 2023: 24.0pp

Liquefied natural gas (LNG) production has rapidly expanded, as project development has increased the scale and production capacity of the industry. Australian liquefied natural gas (LNG) exports have increased from 20.0 million tonnes in 2010-11 to 80.9 million tonnes in 2022-23. LNG revenue is expected to rise at an annualised 20.7% over the five years through 2022-23, to $90.3 billion.

The wave of project development that occurred across the industry over the past decade has now concluded. Ten LNG facilities are now operational, including the Prelude and Ichthys projects, which shipped their first cargoes in 2018-19. Together, the industry's 10 LNG... Learn More

4. Inbound Tour Operators in Australia

Percentage Point Increase for 2023: 17.6pp

Inbound tour operators primarily arrange and assemble travel packages, combining various domestic tourism products such as accommodation, transport, scenic tours and meals. These packages are onsold to overseas travel wholesalers and retailers, and international travellers subsequently purchase them. Industry revenue is largely tied to the number of inbound tourists visiting Australia. As a result, the COVID-19 pandemic and the Federal Government's subsequent inbound travel restrictions decreased demand for industry services from March 2020 to February 2022. Therefore, industry revenue is expected to decrease at an annualised 10.9% over the five years through 2022-23, to total $321.1 million. However, this trend... Learn More

5. Oil and Gas Extraction in Australia

Percentage Point Increase for 2023: 16.7pp

Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.

Australia's natural gas production, which makes up most of the industry has soared over the past decade as new gas fields have been developed to feed Australia's liquefied natural gas (LNG) facilities. Global trade in LNG has expanded with growing demand for LNG in Asian markets and weakness in the... Learn More

6. Cinemas in Australia

Percentage Point Increase for 2023: 14.7pp

Cinema operators have faced significant challenges in recent years. Intensifying competition from other sources of entertainment, such as SVOD services, has negatively affected demand. Volatile economic conditions have also made it difficult for cinema operators to boost patronage and average spend. In response, cinemas have tried to differentiate the cinema experience from other forms of entertainment. Operators have upgraded projection systems to the latest technology and renovated their cinemas to include more premium offerings, such as recliner seats and gourmet food and beverage options. However, public health measures implemented in response to the pandemic forced cinemas to close temporarily or... Learn More

7. International Airlines in Australia

Percentage Point Increase for 2023: 12.4pp

The pandemic decimated the International Airlines industry, but the industry is now on the rebound. Notwithstanding airfreight transport, the industry's services were essentially non-existent while international borders were shut. For an extended period, international air travel was limited to flights for repatriation and migration purposes. The industry's airfreight services segment has offered some reprieve to international airlines over the period, supported by soaring airfreight prices. The industry has begun its ascent since many international borders reopened in early 2020, which is why industry revenue is set to climb by 71.8% in 2022-23. Overall, industry revenue has declined at an annualised... Learn More

8. Solar Electricity Generation in Australia

Percentage Point Increase for 2023: 11.7pp

As Australia looks to a cleaner future, solar power offers a bright alternative to emissions-intensive fossil fuels. Advances in solar photovoltaic (PV) technologies have made solar commercially viable, with China manufacturing most of the world's solar panels. In contrast to small-scale solar – which is covering more Australian homes than ever before – the utility-scale market remains relatively untapped. Buoyed by public sector support, private capital is now flooding into new solar projects and propelling capacity growth. Larger farms are being constructed to generate economies of scale and service industrial firms. Amid vocal consumer and shareholder support for clean energy,... Learn More

9. Battery Material Mining in Australia

Percentage Point Increase for 2023: 11.2pp

Battery material mining revenue has soared, as battery manufacturers have sought to lock in supply to meet surging demand. Rising demand for electric vehicles has led global automakers to offer a growing range of electric vehicles, particularly in China. The supply of battery materials has become increasingly tight, driving demand for Australian battery material exports. Overall, industry revenue has grown at an annualised 55.9% over the past five years, to $16.9 billion. This includes a rise of 198.6% in 2022-23, as lithium export prices skyrocket.

Several new enterprises have entered the industry by developing lithium mines in Western Australia. These firms... Learn More

10. Sports and Recreation Facilities Operation in Australia

Percentage Point Increase for 2023: 11.1pp

The Sports and Recreation Facilities Operation industry's revenue has fallen over the past five years. For most of the period, government grants and contributions have helped support growth in industry revenue. These grants generally go towards constructing or redeveloping stadiums. For example, the Victorian Government has helped fund the redevelopment of the Melbourne Park precinct, and the NSW Government has undertaken a major redevelopment of the Sydney Football Stadium. Several new facilities were also constructed for the Gold Coast 2018 Commonwealth Games, including the Anna Meares Velodrome and the Queensland State Netball Centre. New stadiums in Perth, Western Sydney and... Learn More