More than $926 million worth of fibre is produced at farm gate in New Zealand each year. The sector produces approximately 172,000 tonnes annually, with the majority exported after early-stage processing. Domestic manufacturing of apparel, carpet and textiles generates $1.85 billion in sector revenue, while structural barriers including fragmentation, limited processing capability and weak pathways from innovation to market limit how much of that value is captured locally.
- Wool is the dominant fibre by volume and value, at 114,600 tonnes worth $540 million, with skins and hides contributing 54,050 tonnes valued at $372 million.
- New Zealand imports approximately 116,000 tonnes of yarn, fabric, apparel, carpet and textiles each year, including locally produced fibre that has been processed overseas.
- Domestic textile and apparel manufacturing employs 7,410 people across 1,317 enterprises, generating estimated sector revenue of $1.85 billion in 2025.
- The findings have been published in Emerging Insights, Future of Fibre Aotearoa, Fashion and Textiles New Zealand, last week. The full report is scheduled for release in August.
THE INITIATIVE:Future of Fibre Aotearoa has been established as an industry-led initiative to increase the value of New Zealand's fibre sector, from raw material production to finished product. Led by Fashion and Textiles New Zealand and supported by AGMARDT's The Common Ground, the programme aims to reposition fibre as a leading part of New Zealand's high-value economy through sector research, foundational insights and locally embedded pilot projects.
- The Year 1 programme comprises three workstreams: ecosystem mapping to define fibre positioning and opportunities, the Threads of Tomorrow Summit for industry engagement and roadmap planning, and a Foundational Fibre Report providing comprehensive analysis of current state and potential.
- Year 2 activation, subject to confirmation, includes a Fibre Action Plan co-created with industry, a Digital Fibre Platform and a series of Pilot Projects.
- As a cross-sector enabler, the initiative supports the fibre sector to realise its potential as a central part of New Zealand's bioeconomy and cultural narrative.
THE NUMBERS: New Zealand's fibre supply spans three categories: established fibres, where commercial industries and market applications already exist; emerging fibres, where industries are still developing or being re-established; and experimental fibres, which are at research, prototype or early development stage. Established fibres account for the overwhelming majority of sector output, while emerging fibres such as hemp, harakeke, mohair, alpaca and cashmere remain at comparatively small commercial scale.
- Wool produces 114,600 tonnes valued at $540 million at farm gate, with skins and hides contributing 54,050 tonnes at $372 million, together accounting for the overwhelming majority of total sector value.
- Emerging fibres include mohair at 31 tonnes worth $0.4 million, cashmere at one tonne worth $0.1 million, alpaca at 33 tonnes worth $0.5 million, hemp at 540 tonnes worth $1 million, and harakeke at 175 tonnes worth $1.5 million.
- New Zealand imports 116,000 tonnes of yarn, fabric, apparel, carpet and textiles annually, including locally produced fibre processed overseas, while approximately 11,000 tonnes of domestically manufactured goods are exported each year.
- Domestic apparel, carpet and textiles consumption stands at 187,000 tonnes, generating approximately 179,000 tonnes of textile waste.
- The textiles subsector comprises 804 enterprises employing 5,111 people with estimated revenue of $1,420 million (range $1,400–1,500 million), while apparel and footwear comprises 513 enterprises employing 2,295 people with estimated revenue of $430 million (range $400–450 million).
- New Zealand fibre feeds four end-use markets: apparel and footwear, driven by design capability and demand for fine natural fibres; interiors, covering carpets, rugs and upholstery; built environment applications including acoustics and insulation composites; and technical and advanced materials.
STRENGTHS AND GAPS: New Zealand produces globally recognised natural fibres, yet structural barriers limit the sector's ability to capture value locally. The sector's strengths include world-class natural fibre production underpinned by provenance and transparency, relationship-based value chains connecting growers, makers and brands, and values-led and IP-driven business models including tikanga and mātauranga-informed pathways. Systemic gaps across the value chain continue to hold the sector back.
- Fragmentation across fibres, regions and value chain stages limits coordination and collective strategy, reducing the sector's ability to move at scale.
- Limited mid-scale processing and manufacturing infrastructure makes it difficult to take products from development to commercial scale.
- Pathways from innovation to commercialisation remain weak, with producers lacking access to prototyping facilities, validation support and capital.
- Specialised textile and manufacturing skills are being lost faster than they are being replaced, with formal training pathways still limited.
- Funding is hard to access, in part because investors and policymakers have limited visibility of the sector's scale and economic contribution.
- Ecosystem mapping has found that the future of New Zealand's fibre sector will be defined not only by what it produces but by how fibre is transformed into high-value products, materials and systems that meet real market needs.
- Emerging global shifts toward natural fibres and biomaterials, alongside regulatory and consumer demand favouring natural alternatives to synthetics, present growth opportunities the sector is currently under-resourced to capture.
