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.”