Why Merino wool is in demand now more than ever
The global wool industry is experiencing its strongest rally in decades_ with Merino wool once again at the centre of fashion and performance innovation. In Australia_ the world_s leading producer_ the Eastern Market Indicator (EMI)_ the sector_s key benchmark_ climbed 109 cents in recent weeks to reach 1_453 cents per kilogram_ marking the sharpest price rise in 30 years.
Analysts attribute the surge to more than supply constraints_ this is a demand-led recovery. Tight inventories_ genuine consumer appetite_ and renewed confidence across the value chain are combining to drive prices higher. According to Woolmark_ the current lift reflects real_ sustainable demand.
An Ipsos global consumer survey found wool among the top three most desirable fabrics for both fashion and sportswear. The fibre_s market value_ estimated at USD 34.9 billion in 2022_ is projected to reach USD 63.2 billion by 2033_ signalling structural growth rather than seasonal hype.
A return to timeless wardrobes
This resurgence reflects a broader consumer pivot toward durability_ traceability_ and natural materials. Once dominant_ in 1973_ three-quarters of global clothing was made from natural fibres_ wool and cotton were largely displaced by synthetics derived from fossil fuels. Today_ roughly 70 percent of apparel is made from synthetics (Changing Markets_ Fossil Fashion_ 2023).
The pendulum_ however_ is swinging back. Cotton Incorporated_s Global Sustainability Survey found 91 percent of consumers associate higher quality with natural fibres_ while PM Market Research reported that certified Merino wool now commands a 15–30 percent premium in luxury markets. Nielsen data further revealed wool garments are three times more likely to be donated or re-worn than those made of synthetic fibres_ an indicator of perceived longevity and value.
The result is a shift towards “fewer_ better things_” investment dressing built on authenticity. On recent runways_ Chanel_ Dior_ Thom Browne_ Givenchy_ Victoria Beckham and Celine have all used wool in Spring Summer collections_ signalling its evolution beyond cold-weather wear.
Performance_ sport and the wellness crossover
Wool_s revival extends far beyond luxury. Fitness and wellness communities are increasingly turning to Merino_s natural performance attributes_ breathability_ odour resistance_ thermoregulation_ to meet the expectations of an active lifestyle audience.
A 2024 Ipsos Global Consumer Survey found that the top purchasing drivers for sportswear remain functional_ breathability_ comfort_ durability_ and lightness_ all qualities inherent to Merino. North Carolina State University_s four-year study concluded that 100 percent Merino base layers perform up to 96 percent better than polyester in thermal and moisture buffering.
Sportswear and outdoor brands are capitalising on this advantage. On_ Salomon_ Tracksmith_ Ciele_ Patagonia_ Lululemon_ and The North Face have all launched Merino-rich collections_ positioning the fibre as a year-round performance material rather than a winter fabric. At the US Open_ Venus Williams even wore a Merino wool kit by LUAR_ underscoring wool_s credibility at elite performance levels.
The fibre for a new generation
For Gen Z and Millennial consumers_ Merino wool also aligns with deeper lifestyle values_ wellness_ sustainability_ and slow living. It is 100 percent natural_ renewable_ biodegradable_ and the world_s most recycled apparel fibre_ positioning it perfectly within the circular fashion movement.
At the Future Fabrics Expo 2025_ 43 percent of industry voters identified circular design as fashion_s biggest opportunity_ with wool cited as a core solution. In parallel_ the AWI Market Intelligence Report noted that online sales of premium wool products grew 34 percent year-on-year in 2023_ highlighting its accelerating commercial traction.
Meanwhile_ a Norwegian study published in Fibers (2025) found that 72 percent of consumers prefer wool to synthetic fibres_ and 63 percent favour cotton_ evidence that sentiment is shifting at scale across global markets.
Woolmark_s position in a changing industry
John Roberts_ Managing Director at Woolmark_ says the fibre_s success lies in its ability to meet evolving consumer expectations.
“As citizens demand more from what they wear_ comfort_ performance_ traceability and responsibility_ Merino wool is meeting the moment_” he said. “With leading influencers and brands alike embracing its story_ it_s no surprise demand is rising across luxury fashion_ sportswear and lifestyle. It_s the fibre that truly delivers_ naturally.”