5 industries tipped to soar in 2014

Wondering what diamond mining, organic farming and super funds could possibly have in common?

They – along with online shopping and online publishing and broadcasting – are among the industries business analysts from IbisWorld expect to rocket this year.

Diamond and gemstone mining tops the list of industries expected to soar in 2014. Analysts are tipping 24% growth, underpinned by the Argyle Diamond Mine in Western Australia.

IBISWorld General Manager (Australia) Karen Dobie says Australia’s diamond and gemstone production and exports are expected to increase significantly this year.

“This reflects fresh production capacity coming online and strong demand from South-East Asia due to rising median incomes,” she says.

But Australia’s superannuation funds are not far behind diamonds and gemstones when it comes to growth, with analysts expecting the industry to grow 23% this year.

Strong consumer demand is the key ingredient for organic food, with industry growth of 13.7% this year.

“A broader selection of organic foods in supermarkets, independent retailers and markets should assist in increasing sales and driving revenue for primary producers,” Dobie says.  “This will include more private-label organic products available at lower pricepoints.”

Source: IbisWorld

IbisWorld expects online shopping to grow 12.3% this year, to revenue of $13.2 billion, as more traditional retailers join the online world.

And the rollout of the NBN is expected to help online publishing and broadcasting grow about 11.4%.

“The ease of setting up operations makes it viable for current publishers to transition print models to online or combine the two, and for new publishers to start the journey in the online world,” Dobie says.

But IbisWorld analysts believe video and DVD hire, sugar cane growing and mineral exploration are among the industries that could face some challenges.

Newspaper publishing and Horse and dog racing are also tipped to fall in 2014.

IBISWorld forecasts the horse and dog racing industry will slump 3.7% to generate revenue of $1.6 billion in 2014.

“Tightening government regulations and restrictions have resulted in fewer quality horse imports into Australia, negatively affecting betting revenue and attendance figures,” Dobie says.

“Coupled with unfavourable red tape, interest in racing events by Australian consumers is also in decline, making the current and medium-term environment challenging for the sector.”