Business information analysts at IBISWorld reveal the five industries expected to do well in 2013.
The IBISWorld industry report covers oil and gas production, organic farming, online education, online shopping and multi-unit apartment and townhouse construction.
Oil and Gas Production
Forecast to grow by 15.9% to reach $44.4 billion in 2013, the oil and gas production industry has been highlighted by IBISWorld as this year's top industry performer, with growth driven by higher output and substantially higher global prices.
According to IBISWorld General Manager (Australia), Ms Karen Dobie, Australia's liquefied natural gas production and exports are expected to increase significantly over the coming year, reflecting a switch in favour of gas for electricity generation, which will be driven by more volatile demand and carbon pricing on oil, and an expected increase of 8.4% in US dollar crude oil prices.
With abundant reserves in Queensland and New South Wales, LNG output is rapidly growing and is expected to reach 6.8 billion cubic metres in 2013. Strong growth in export demand for LNG is expected to increase world price by 15.7% over the next year.
Organic farming has grown at a compound annual rate of 10% since 2008, and is expected to continue to rise as consumers factor in the health benefits and environmental impact of their food choices. IBISWorld forecasts an increase of 12.5% across the industry over the coming year, boosting revenue to $617 million. Ms Dobie also identified income growth as a key factor driving demand for organic products with consumers moving away from conventionally farmed produce towards natural, chemical- and hormone-free alternatives.
IBISWorld anticipates revenue for Australia's online education industry to increase by 10.5% in 2013, to reach just under $5.6 billion. Growth has been supported by the continued uptake of high-speed internet services, growing acceptance of online education, government support for students and efforts to expand access beyond the typical school-leaver demographic.
The NSW Department of Education is also assisting industry growth, with technologies expanding at a rapid rate to deliver education to remote parts of Australia.
Forecast to grow by 9.1% to reach almost $11.8 billion in 2013, the online shopping industry has continued to flourish as consumers demand more of their goods and services via online channels.
Ms Dobie explains that Australians are increasingly expecting traditional retailers to have an active investment in the online sphere, and provide options for online browsing and shopping to complement their storefronts.
Over the coming year, IBISWorld expects online retailers to move into the bricks-and-mortar space, providing convenient pick up and return locations for consumers.
Multi-Unit Apartment and Townhouse Construction
Strong population growth in the late 2000s has fuelled underlying demand for housing, in particular for the multi-unit apartment and townhouse construction industry, which is forecast to grow 9% over the coming year to reach $16.6 billion. Urban trends show a shift towards medium to high density residential developments as occupants opt to remain close to the CBD, transport and commercial hubs.
Property investors – primarily funded from Asia – kick-started new apartment projects in 2010 and 2011. Coupled with several interest rate cuts since November 2011 and the flow through of government assistance to both homebuyers and investors, the new projects are expected to have a buoyant effect on the industry.