The global wool industry is experiencing its strongest recovery in decades. Merino wool is once again at the center of fashion and performance innovations. In Australia, the world’s leading producer, the Eastern Market Indicator (EMI) has risen 109 cents in recent weeks. The industry’s most important benchmark reached 1,453 cents per kilogram. This is the strongest price increase in 30 years.
Analysts attribute this to more than just supply constraints; it is a demand-driven recovery. Tight inventories, real consumer demand and renewed trust in the entire value chain are all driving prices up. Woolmark says the current recovery reflects real, sustained demand.
A global consumer survey by Ipsos found wool to be among the top three most sought-after fabrics for fashion and sportswear. The fiber’s market value was estimated at $34.9 billion (€32.11 billion) in 2022 and is expected to rise to $63.2 billion (€58.14 billion) by 2033. This suggests structural growth rather than seasonal hype.
Return to the timeless wardrobe
This upswing reflects a broader shift in consumer mindset towards durability, traceability and natural materials. These were once dominant: in 1973, three quarters of the world’s clothing was made from natural fibers. However, wool and cotton have largely been replaced by synthetic fibers made from fossil fuels. Today around 70 percent of clothing is made from synthetic fibers (Changing Markets, Fossil Fashion, 2023).
However, the pendulum is swinging back. Cotton Incorporated’s Global Sustainability Survey found that 91 percent of consumers associate higher quality with natural fibers. At the same time, PM Market Research reports that certified Merino wool now commands a price premium of 15 to 30 percent in luxury markets. Nielsen data also showed that garments made from wool are three times more likely to be donated or reworn than those made from synthetic fibers. This is an indicator of perceived longevity and value.
The result is a shift toward “fewer but better things.” It is “investment dressing” based on authenticity. In recent runway shows, Chanel, Dior, Thom Browne, Givenchy, Victoria Beckham and Celine have used wool in their spring/summer collections. This signals the development of the material beyond pure winter clothing.
Performance, sport and wellness crossover
The revival of wool goes far beyond the luxury sector. Fitness and wellness communities are increasingly relying on the natural performance properties of Merino. These include breathability, odor resistance and thermoregulation to meet the expectations of an active audience.
A 2024 global consumer survey by Ipsos found that the most important selling point for sportswear continues to be its functionality. These include breathability, comfort, durability and lightness – all properties that merino wool naturally possesses. A four-year study from North Carolina State University concluded that base layers made from 100 percent merino wool perform up to 96 percent better at regulating heat and moisture than polyester.
Sportswear and outdoor brands are taking advantage of this. On, Salomon, Tracksmith, Ciele, Patagonia, Lululemon and The North Face have all launched merino-rich collections. They position the fiber as a year-round functional material and not just as a winter material. At the US Open, Venus Williams even wore an outfit made from merino wool from Luar. This underlines the credibility of wool at the highest level of performance.
Fiber for a new generation
For Gen Z and Millennial consumers, Merino wool also fits deeper lifestyle values. These include wellness, sustainability and slow living. It is 100 percent natural, renewable, biodegradable and the most recycled clothing fiber in the world. This makes it perfectly positioned in the circular economy of fashion.
At the Future Fabrics Expo 2025, 43 percent of industry voters named circular design as fashion’s biggest opportunity. Wool was mentioned as a core solution. At the same time, the AWI Market Intelligence Report noted that online sales of premium wool products grew by 34 percent in 2023 compared to the previous year. This underlines the increasing commercial importance.
Meanwhile, a Norwegian study published in the journal Fibers (2025) found that 72 percent of consumers prefer wool to synthetic fibers; 63 percent favor cotton. This is evidence that the mood in global markets is changing on a large scale.
Woolmark’s position in a changing industry
According to John Roberts, Managing Director at Woolmark, the fiber’s success lies in its ability to meet consumers’ evolving expectations: “Citizens demand more from what they wear: comfort, performance, traceability and responsibility. Merino wool meets this moment,” he explains.
“With leading influencers and brands alike embracing her story, it’s no surprise that demand is increasing in luxury fashion, sportswear and lifestyle. It’s the fiber that really wins in a natural way,” summarizes Roberts.
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