The global merino wool market size reached a production volume of about 304 KMT in 2024. The market is projected to grow at a compound annual growth rate (CAGR) of 0.4% between 2025 and 2034, reaching a volume of 311.68 KMT by 2034. Despite the modest growth rate, the market remains highly relevant in the global textile industry due to its unique qualities, such as softness, breathability, and sustainability. As consumer preferences shift towards eco-friendly products, the demand for merino wool continues to rise, particularly in high-end fashion, activewear, and luxury textiles. This blog post will explore the key trends, market segmentation, and dynamics shaping the global merino wool market from 2025 to 2034, along with insights into regional growth and competitive strategies.
Market Overview
What is Merino Wool?
Merino wool is a premium type of wool derived from Merino sheep, known for its exceptionally fine fibers. It is prized for its softness, warmth, moisture-wicking properties, and natural odor resistance. Unlike regular wool, which can feel coarse, merino wool is soft against the skin, making it ideal for clothing that requires comfort and performance. The wool is widely used in the apparel industry for products ranging from everyday clothing to technical and activewear. Additionally, merino wool is sought after for home textiles, such as blankets and bedding, due to its insulating and breathable qualities.
Market Size and Growth Projections (2025-2034)
In 2023, the global merino wool market produced about 304 KMT (thousand metric tons), and with a projected growth rate of 0.4% CAGR between 2024 and 2032, the production volume is expected to reach approximately 311.68 KMT by 2032. Although this growth rate is modest, it is important to note that the market’s steady demand stems from the continued popularity of merino wool in high-quality garments, sportswear, and sustainable home textiles.
Market Segmentation
By Type
Merino wool is categorized into two main types: worsted and woollen. Each type serves different purposes and markets, contributing to the diversity of the global merino wool industry.
Worsted
Worsted wool is created through a smooth, straightening process that produces long, fine fibers. This process ensures that the wool has a sleek, durable, and smooth texture. Worsted merino wool is commonly used for high-end apparel, such as suits, coats, and luxury knitwear, due to its refined quality and smooth appearance. The demand for worsted merino wool is expected to remain strong, especially in the fashion and luxury garment sectors, where consumers prioritize quality and comfort.
Woollen
Woollen merino wool, on the other hand, is made from shorter fibers that are carded and spun in a way that results in a thicker, bulkier fabric. Woollen wool is typically used in sweaters, scarves, blankets, and outerwear. This type of wool is also favored for its warmth and insulating properties, making it ideal for winter wear and cold-weather clothing. Woollen merino wool continues to be in demand in both fashion and home textiles, particularly in markets where functional, warm products are a priority.
By Weave
The weave of merino wool fabrics also affects their texture, appearance, and durability. Two common types of weave used for merino wool fabrics are plain weave and twill.
Plain Weave
Plain weave is the simplest and most common weave type, where each yarn is alternately woven over and under the other. This weave provides a balanced structure that is lightweight, breathable, and durable. Merino wool fabrics with a plain weave are commonly used in both fashion and home textiles, such as shirts, dresses, bedding, and throws. The versatility of plain weave fabrics makes them a staple in the global merino wool market, especially for garments that require comfort and easy maintenance.
Twill
Twill weave, which features a diagonal pattern of parallel ribs, is more durable and often more visually appealing than plain weave. The twill weave is typically used in higher-end merino wool fabrics, such as tailored jackets, trousers, and other fine apparel. The unique texture created by twill weave also contributes to its popularity in luxury textiles. With growing interest in durable, high-performance fabrics, twill-woven merino wool is expected to continue its upward trajectory in both fashion and home textiles.
By Application
Merino wool is used in a wide range of applications, from woven and knitted fabrics to luxurious apparel and home textiles. The versatility of merino wool makes it suitable for various end-uses across different segments.
Woven
Woven merino wool fabrics are known for their durability, strength, and refined texture. These fabrics are used in a variety of products, including tailored suits, formal shirts, and outerwear. The woven segment continues to be a significant part of the global merino wool market, driven by demand for formal and high-quality garments.
Knits
Knitted merino wool fabrics are renowned for their elasticity, comfort, and moisture-wicking properties. These fabrics are commonly used in activewear, casual wear, and performance clothing. With the growing trend towards athleisure and eco-conscious fashion, the demand for knitted merino wool is increasing. Merino wool’s natural properties, such as its ability to regulate body temperature and wick away moisture, make it ideal for use in outdoor and sportswear.
By End Use
Merino wool is used in various end products, including apparel, home textiles, socks, and accessories. Each of these categories plays a role in the ongoing demand for merino wool.
Apparel
The apparel sector remains the largest consumer of merino wool, particularly in premium and luxury clothing. Merino wool’s softness, breathability, and versatility make it a favorite material for both men’s and women’s fashion, including sweaters, scarves, suits, and dresses. As consumers increasingly prioritize sustainability and quality in their clothing choices, the demand for merino wool in the fashion industry is expected to remain strong.
Innerwear
Merino wool is increasingly used in innerwear, such as base layers and thermal wear. The fabric’s ability to regulate body temperature and provide comfort against the skin makes it an ideal choice for underwear, long underwear, and thermal shirts. As consumers seek out performance fabrics that offer warmth without bulk, merino wool is gaining popularity in the innerwear category.
Socks
Merino wool socks are highly sought after for their moisture-wicking properties, comfort, and warmth. They are particularly popular in outdoor activities, such as hiking, skiing, and mountaineering, as well as in luxury markets. The growing demand for sustainable and high-performance products in the footwear sector contributes to the ongoing growth of merino wool sock sales.
Home Textiles
Merino wool is also used in various home textile products, including blankets, bedspreads, and upholstery fabrics. Known for its natural insulating properties, merino wool is favored in home textiles for its warmth and breathability. As sustainability trends continue to influence consumer behavior, merino wool’s role in home textiles is expected to expand, with consumers seeking luxurious, eco-friendly alternatives to synthetic fabrics.
Other Accessories
Merino wool is used in a range of other accessories, including scarves, hats, gloves, and shawls. The softness and warmth of merino wool make these products highly desirable, particularly in colder climates. The demand for high-quality, sustainable accessories is expected to drive continued growth in this category.
Regional Analysis
North America
In North America, the demand for merino wool is driven by the fashion and activewear markets. The U.S. and Canada are key markets for premium apparel, where merino wool is favored for its quality and comfort. As consumers become more environmentally conscious, the demand for sustainable products, including merino wool, is increasing.
Europe
Europe remains a strong market for merino wool, particularly in countries like Italy, Spain, and the UK, where fashion plays a key role in the economy. Merino wool’s association with high-end fashion and luxury textiles contributes to its popularity in the region. Sustainability is also a major driver, with European consumers showing a strong preference for eco-friendly fabrics.
Asia-Pacific
In the Asia-Pacific region, countries like Australia and New Zealand, which are key producers of merino wool, drive both the domestic and international demand for the fabric. Additionally, growing markets like China and Japan are seeing increased interest in merino wool products, particularly in the luxury apparel and performance wear sectors.
Latin America
In Latin America, there is a growing demand for merino wool, particularly in countries like Brazil and Argentina, where there is a burgeoning middle class and increased consumer interest in quality, sustainable products.
Middle East & Africa
The Middle East and Africa show potential for niche demand in luxury fashion, with merino wool being used for high-end garments and accessories. As the region’s consumers increasingly seek premium products, merino wool is gaining traction.
Market Dynamics
SWOT Analysis
Strengths
- High-quality, sustainable, and versatile material.
- Strong demand from premium apparel, activewear, and home textiles.
Weaknesses
- Limited supply and high production costs.
- Dependence on seasonal sheep shearing and global production conditions.
Opportunities
- Growing consumer preference for sustainable and eco-friendly products.
- Expansion in emerging markets and increased focus on performance wear.
Threats
- Competition from synthetic fibers and other natural alternatives.
- Volatility in wool prices and production levels.
Competitive Landscape
Key players in the global merino wool market include companies like The Merino Company, Icebreaker, Smartwool, and Woolmark. These brands focus on sustainability, innovation in product development, and strategic collaborations to maintain market leadership.
