Wool Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Wool Market Trends and Insights

Greening of Global Fashion Supply Chains

The apparel industry is adapting its sourcing strategies to meet science-based carbon targets, with wool emerging as a viable alternative to virgin synthetic materials in both premium and mass-market segments. The implementation of Europe's Extended Producer Responsibility framework in January 2025, which mandates recyclability by 2030, is driving retailers to secure sustainable fiber supplies. According to a Boston Consulting Group study, apparel brands with USD 1 billion in revenue can generate USD 100 million in net profit over five years by transitioning to natural fibers. The Woolmark Company introduced its Woolmark+ program in 2024, incorporating 13 environmental initiatives focused on carbon insetting and methane reduction to enhance wool's sustainability profile. The luxury segment reports that consumers continue to accept premium pricing for traceable merino wool products, maintaining strong demand despite economic pressures.

Rising Demand for Traceable and Certified Wool

Certified wool lots command price premiums, with South African sustainably certified merino selling at USD 9.79 (R177.77) per kg compared to USD 9.81 (R173.80) for conventional wool.^{[1]Cape Wools South Africa, “Wool Market Report 2024/25,” Cape Wools, capewools.co.za}Australian non-mulesed wool volumes increased 5% year-over-year as global retailers implemented animal welfare requirements. Certification programs such as ZQ and RWS provide growers with multi-year purchase agreements, protecting them from price fluctuations and enabling better planning. European retailers require wool provenance tracking at the bale level, while digital blockchain tracking is becoming common for premium brands. These factors drive increased adoption of certified wool programs, reduce available supply, and raise minimum prices for ethically produced wool.

Expansion of Thermal-Insulation Applications in Building Materials

Sheep wool insulation provides high thermal resistance (R-value), fire resistance, and moisture control without added chemicals, meeting European building energy regulations. Renovation programs focused on reducing lifetime carbon emissions increasingly use biodegradable insulation materials instead of mineral fiber and petrochemical-based products. The material's sound absorption properties drive its adoption in commercial buildings. Additionally, the agricultural sector uses waste wool as soil fertilizer, creating a circular economy and generating income from lower-quality wool. These construction and agricultural applications expand the market beyond clothing uses.

Regulatory Pressure Drives Shift from Synthetic Fleece to Biodegradable Wool

The ban on PFAS (Per- and Polyfluoroalkyl Substances) in textiles across North America and Europe eliminates a significant performance advantage of synthetic fleece, creating opportunities for wool-based outdoor garments. Laboratory research demonstrates that both treated and untreated wool biodegrades in marine environments, while polyester shows minimal degradation. This aligns with environmental groups' concerns about microplastic pollution. In response, outdoor apparel manufacturers are modifying their material requirements and collaborating with suppliers to develop water-resistant merino fabrics without membranes that meet performance standards. These regulatory changes provide sustained support for wool market growth.

Life Cycle Assessment Impact on Wool’s Market Position

Studies indicate that cleaned wool has a higher greenhouse gas intensity per kilogram compared to synthetic fibers, according to the Higg Materials Sustainability Index. Reports from civil society organizations estimate that wool production generated 35 million tonnes of CO₂ equivalent emissions in 2019, which challenges brands' environmental claims. The Center for Biological Diversity's report "Shear Destruction" highlights that wool production requires significant land and water resources and generates high greenhouse gas emissions, contradicting the industry's environmental sustainability claims.^{[2]Center for Biological Diversity, “Shear Destruction: Wool, Fashion and the Biodiversity Crisis,” biologicaldiversity.org}The ongoing debate regarding life cycle assessment methodologies presents reputational risks for retailers who market wool as environmentally friendly. While European regulators review life cycle assessment standards, some buyers are temporarily shifting toward cellulosic fiber alternatives. The wool industry has initiated carbon reduction programs at farms, though data standardization remains challenging.

Decline in Sheep Numbers in Traditional Wool-Producing Countries

Australia's wool production decreased to 279 million kg greasy in 2024, reaching its lowest level in a century, as farmers shifted to cattle farming and broad-acre crops for better profit margins. New Zealand's sheep population declined to under 26 million head, the lowest in 170 years, due to weather-related losses and conversion of farmland to horticultural use. The reduced supply has led to lower auction volumes, increased raw wool prices, and reduced processor margins. Processing facilities in China and Italy report periodic underutilization of their scouring lines, with some facilities implementing blended-fiber programs to maintain production levels.

Geography Analysis

Asia-Pacific maintains a 53% revenue share and demonstrates a 5.30% CAGR through 2030, establishing its position as the primary producer and consumer. China processed 356,193 metric tons of greasy wool in 2022, representing 20.2% of global output, while importing premium merino from Australia for worsted apparel production. Australia's wool production supports premium market segments, with its mutton exports to China reflecting integrated protein-fiber trade relationships. India's exports reached USD 1.74 billion in FY24, demonstrating its growing presence in carpet-grade wool production, supported by the Integrated Wool Development Programme.

Europe maintains its position as the primary importer of finished apparel and regulatory standard-setter. Germany, France, Spain, Italy, and the Netherlands constitute 73.3% of the European apparel market, which grew by 4.1% in 2023. European consumer behavior supports sustainable wool production, with 50% of consumers purchasing sustainable fashion in 2022. The region's circular-economy regulations require recyclability and recycled content, supporting wool market growth. Alpine cooperatives implement on-farm scouring and regional branding initiatives, while Turkey strengthens its global position through its Angora production and hosting of the IWTO Round Table 2024.

The United States' wool exports increased to 5,422 metric tons in 2024, reaching the highest level since 2018, despite domestic flock numbers remaining low due to labor shortages and land-use constraints. U.S. performance-outdoor brands are increasing PFAS-free initiatives, transitioning from polyester fleece to merino wool. South America serves as a market for medium-grade wool, with Uruguay and Argentina developing premium opportunities through animal-welfare and traceability programs for European luxury markets. South Africa maintains 97.3% clearance rates and achieves price premiums for certified merino, indicating a strong demand for ethical wool production in the Southern Hemisphere.