Wool Market

Wool Market Outlook (2024 to 2034)

The global wool market is estimated at US$ 35.25 billion in 2024. The market is projected to register a 3.1% CAGR and reach a valuation of US$ 47.83 billion by the end of 2034.

For generations, wool has remained an integral choice in clothing for people of all ages. Renowned for its exceptional insulation properties, wool has long been the preferred material for winter garments, driving sales of woolen blankets and jackets worldwide.

As the impact of climate change becomes evident, the demand for wool is expected to rise at a moderate pace. In countries with colder climates, such as the United States and Canada, wool finds application not only in clothing but also in curtains and carpets, presenting lucrative market opportunities.

The manufacturing process of wool involves transforming raw fibers into yarn via either woolen or worsted processing systems. In addition, woolen yarn is crafted from the shorter fibers of sheep fleece. These wool fibers come in various diameters and lengths. Major processes in production include blending, scouring, carbonizing, woolen carding, and dyeing. Through these meticulous processes, a superior woolen fabric is created, renowned for its durability in diverse environments, thus contributing to wool market growth.

Key Market Growth Drivers

• Wool's natural antimicrobial properties make it the perfect choice for individuals working in fast-paced environments where the skin is prone to microbial infections. Woolen threads act as a protective barrier, shielding the skin from harmful microorganisms.
• Wool textiles boast the highest natural fire resistance compared to untreated fabrics like cotton or polyester. This attribute has led to wool being a favored choice for clothing for firefighters, who often work in extremely hot conditions.
• Wool is known for its excellent thermal insulation. Woolen garments create a vacuum layer around the body, trapping body warmth inside, and keeping us warm throughout the winter. This leads to increased sales, particularly during the global winter season.
• Durability, longevity, and resistance to compression are additional characteristics that contribute to wool's popularity among customers. People value garments that are sturdy and can be used for a lengthy period, making woolen yarns particularly sought after.
• Market suppliers are focusing on improving manufacturing processes to reduce production costs, thus increasing profit margins and fostering global business growth.
• The wool market in South Korea is forecasted to expand at a CAGR of 5.3% from 2024 to 2034.

Report Attributes	Details
Wool Market Size (2024E)	US$ 35.25 Billion
Forecasted Market Value (2034F)	US$ 47.83 Billion
Global Market Growth Rate (2024 to 2034)	3.1% CAGR
Canada Market Growth Rate (2024 to 2034)	3.6% CAGR
China Market Value (2034F)	US$ 10.52 Billion
North America Market Share (2024E)	28.6%
East Asia Market Share (2034F)	38.4%
Key Companies Profiled	Laxtons Limited; Suedwolle Group Italia; Indorama Ventures Public Company Limited; Suripi Textiles Pvt. Ltd.; Sharman Woolen Mills Ltd; Jainson Hosiery Industries; Shanghai Kunlei Wool Textile Co.; Rockwool International; Johns Manville; Owens Corning; Saint-Gobain; Paroc Group Oy

Which Wool Market Trends are Enabling Suppliers to Increase Their Profits in the Market?

“Advancements in Wool Production Technology”

With advancements in wool production technology, spinning and weaving tools are undergoing significant development, leading to increased apparel sales globally. Over time, this growth trend is projected to primarily benefit millennial customers. Their purchasing preferences, characterized by a strong inclination towards quality, authenticity, and transparency, are contributing to the expansion of the wool market size.

• The International Wool Textile Organization (IWTO), a leading authority on wool quality and traceability, has implemented various measures that have resulted in higher wool prices, thereby encouraging production.

The biodegradable nature of wool is supporting businesses. As a natural decomposer, wool poses no harm to the environment. Its thermal insulation capabilities make it a desirable choice for customers.

“Implementation of Traceability Methods to Ensure Product Transparency and Quality”

The wool supply chain is complex, including several steps from farm to fashion. Institutions like the International Wool Textile Organization (IWTO) have implemented various traceability methods to ensure transparency and quality. These methods facilitate the flow of information about wool, providing purchasers with confidence in the characteristics of their purchases.

• According to the IWTO and the latest available data, approximately 1.2 billion sheep worldwide produced around 1,949 million kg of raw wool in 2021, marking an increase of 3.7 billion sheep since 2020.

One notable mechanism is the National Wool Declaration Integrity Program. Recognized globally for its transparency and traceability, the National Wool Declaration is initiated at the farm level. The program, including the NWD Integrity Program (NWD-IP), involves comprehensive desktop audits and on-farm inspections. These efforts aim to establish trust in Australian wool throughout the supply chain and among consumers. As a result of these regulatory activities, wool prices have increased, driven by increased sheep breeding for wool.

“Increasing Demand for Environment-Friendly Alternatives to Synthetic Fibers”

Consumers are increasingly seeking sustainable and environmentally friendly alternatives to synthetic fibers, and wool perfectly aligns with these preferences. Its biodegradability, renewable sourcing, and natural insulating properties make it an attractive choice for eco-conscious individuals. Moreover, the fashion industry's growing focus on natural and premium fibers has led to a surge in demand for high-quality wool. Wool's versatility, enabling it to be spun into various yarns and textiles, enhances its appeal to designers and producers.

Which Market Conditions are Becoming a Threat for Wool Suppliers?

“Fluctuations in Wool Pricing and Scarcity of Skilled Labor”

Fluctuating pricing, a shortage of skilled labor for sheep breeding, and competition from synthetic fibers are among the issues affecting the business. In addition, wool production contributes significantly to greenhouse gas emissions, with sheep rearing generating large amounts of methane, a potent greenhouse gas, and contributing to deforestation, which emits carbon.

These challenges have influenced market conditions and have led to a negative perception of wool products among clients. As a result, key players in the industry have faced significant losses, prompting them to diversify their product lines to maintain profitability and competitiveness. They are continuously updating and improving their offerings to adapt to changing market dynamics.

Country-wise Insights

The market in Japan is projected to expand at a CAGR of 2.8% from 2024 to 2034.

Why Should Wool Suppliers Establish Their Business in the United States?

“Shift in Consumer Buying Patterns toward Online Shopping”

Attribute	United States
Market Value (2024E)	US$ 7.23 Billion
Growth Rate (2024 to 2034)	3.5% CAGR
Projected Value (2034F)	US$ 10.23 Billion

Increasing reliance on online shopping in the apparel industry in the United States is a significant driver for market growth in the country. This trend is fueled by the increasing use of smartphones and the expansion of e-commerce companies such as Amazon, eBay, Otto, Walmart, Priceline, and Alibaba.

Digital innovation, globalization, and changes in consumer purchasing behavior are projected to propel the fashion sector forward. Online commerce offers a wider range of product options and prices compared to physical retail stores. Moreover, the convenience of payment methods and the availability of home delivery options further contribute to industry growth. An accessible online platform in the country allows manufacturers and suppliers to procure goods more efficiently.

Why is China a Successful Wool Fabric Market?

“Favorable Economic Policies and Growing Emphasis on Sustainability”

Attribute	China
Market Value (2024E)	US$ 7.32 Billion
Growth Rate (2024 to 2034)	3.7% CAGR
Projected Value (2034F)	US$ 10.52 Billion

The growth of the wool fabric market is being fueled by economic expansion in key nations such as China. Factors such as increased urbanization, a growing middle-class population, and increased emphasis on sustainability are driving market expansion. With greater economic prosperity and enhanced purchasing power, consumers are now able to afford expensive items, leading to increased demand for consumer goods like clothing and accessories.

Category-wise Evaluation

Based on application, interior textiles are expected to occupy a significant wool market share of 31.5% in 2024.

What is the Reason Behind the Dominance of Woolen Apparel in the Market?

“Effectiveness of Woolen Apparel in Shielding Body from Cold Weather Conditions”

Attribute	Apparel
Segment Value (2024E)	US$ 13.15 Billion
Growth Rate (2024 to 2034)	3.5% CAGR
Projected Value (2034F)	US$ 18.56 Billion

Apparel, including jackets and other winter clothing, relies heavily on wool for its superior warmth retention properties. As winter approaches, a large number of people buy woolen garments to shield themselves from the cold winds, thereby boosting demand for wool apparel worldwide.

Business Competition

The global market for wool is highly fragmented, with several country-level firms meeting local customer demand. Despite a long history, wool market participants are facing a decline in wool production and a quick entrance of less expensive and more adaptive synthetics and other natural materials into end-use sectors.

As quick wool shearing continues to be an influential component in increasing wool output, market participants are shifting their attention to robotic shearing and other technologies to remain competitive. Key players in the wool market are evolving themselves to changing market trends such as insulation mineral wool and other knitted fabrics.

Key Segments of Wool Market Research

• By Source:

  • Merino Wool
  • Peruvian Highland Wool
  • Teeswater Wool
  • Shetland Wool
  • Cashmere Wool
  • Others

• By Type:

  • Fine Wool
  • Medium Wool
  • Coarse Wool

• By Application:

  • Apparel
  • Interior Textiles

• By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa