A global shift towards natural performance and circular design is propelling merino wool into the spotlight. The Australian market has recorded its sharpest price rise in three decades, confirming that demand—not scarcity—has driven value. From luxury labels to sports innovators, the fibre’s comfort, breathability and credibility are redefining apparel standards worldwide, the Woolmark Company announced on Tuesday as it outlined new collaborations to sustain this momentum.
- Australia’s Eastern Market Indicator has climbed, signalling renewed confidence and sustained appetite for premium natural fibres across the supply chain.
- IPSOS has ranked wool among the top fabrics for fashion and sportswear, with consumers associating it with quality, durability and environmental responsibility.
- Luxury houses including Thom Browne, Chanel, Dior, Balenciaga, Victoria Beckham, Givenchy and Celine have featured merino prominently on recent runways.
- Sports and outdoor brands including The North Face, Lululemon, Patagonia, On, Salomon, Tracksmith, Ciele, Under Armour, Mizuno and Huckberry have expanded merino-rich collections.
THE TRIGGER: Australia’s wool market has experienced its largest price surge in three decades, setting off a wave of renewed optimism across the global supply chain. The Eastern Market Indicator has climbed 109 cents to 1,453 cents per kilogram, the highest since mid-2022. Analysts attribute the surge to tight inventories, genuine consumer demand and stronger confidence that the rally reflects enduring, sustainable growth rather than temporary scarcity. merino wool, being 100 per cent natural, renewable, biodegradable and the world’s most recycled apparel fibre, embodies that momentum.
- The Australian wool sector has reported increased international buying activity from key apparel markets, reflecting renewed global confidence in natural fibres.
- Analysts have described the trend as demand-led, contrasting it with previous price spikes driven by drought or supply disruptions.
- The Woolmark Company has emphasised that the current lift is rooted in long-term consumer behaviour and brand investment.
- Traders have noted that the rebound marks a stabilising phase following several volatile seasons in global fibre markets.
WHAT THE DATA SHOWS: The wool industry’s rebound is supported by robust evidence across market indicators and consumer research. Woolmark data shows global demand is broad-based and authentic, underpinned by tight inventories and stable supply. An IPSOS survey has ranked wool among the top three most desirable fabrics, while forecasts suggest the fibre’s market value will almost double to US $63.2 billion by 2033.
- The sustained climb in Australia’s Eastern Market Indicator demonstrates genuine, not speculative, demand for wool across global markets.
- IPSOS research confirms strong preference for wool in both fashion and sportswear categories worldwide.
- A 2021 Global Sustainability Survey found that 91 per cent of consumers believe better-quality garments are made from all-natural fibres.
- PM Market Research has reported certified merino products command a 15–30 per cent price premium in luxury markets.
- Online sales of premium wool garments have grown by 34 per cent year on year, highlighting lasting digital demand.
THE BROADER VIEW: The resurgence of merino wool extends far beyond price movements, reflecting a broader lifestyle and fashion transition. In 1973, three-quarters of all clothing was made from natural fibres, whereas today nearly 70 per cent is synthetic, underscoring fashion’s renewed return to its roots. Designers and consumers are embracing the “fewer, better things” philosophy, choosing quality, natural materials over synthetics. Wool’s versatility and biodegradability have positioned it as both a luxury and performance choice, strengthening its role across wardrobes, sportswear, and wellness-driven markets globally.
- Fashion houses including Chanel, Dior, Balenciaga, Victoria Beckham, Givenchy and Celine have showcased merino on major runways.
- Consumers increasingly associate natural fibres with longevity, comfort and environmental responsibility, surveys have found.
- Influencers and sustainability advocates on digital platforms have championed wool as a responsible and enduring material.
- From thrift hauls to eco-influencers on TikTok, merino wool has been reintroduced to younger audiences as both stylish and sustainable.
- The Woolmark Company has partnered with fashion and wellness sectors to highlight merino’s natural performance and traceability.
SETTING THE RECORD STRAIGHT: Industry leaders insist that wool’s resurgence is driven by authentic, sustained demand rather than short-term speculation. The Woolmark Company has reaffirmed that this momentum stems from measurable sustainability and performance advantages, aligning with growing expectations for traceability and responsibility. As merino gains recognition across sectors, the fibre is redefining how natural materials compete in both fashion and technical apparel markets.
- Studies have shown merino base-layers perform up to 96 per cent better than polyester in thermal comfort and moisture buffering.
- High-profile athletes and influencers have adopted wool-rich apparel, reinforcing its status as a modern performance material.
- Studies have shown that wool garments are three times more likely to be donated than other fibres, reflecting their lasting quality and perceived value.
- With continued innovation and global collaboration, wool’s trajectory appears firmly rooted in long-term consumer trust and industry adaptation.
- At the Future Fabrics Expo 2025, 43 per cent of industry participants identified circular fashion as the biggest opportunity, with wool viewed as a core solution.
WHAT THEY SAID
As citizens demand more from what they wear—comfort, performance, traceability and responsibility—merino wool is meeting the moment. 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.
— John Roberts
Managing Director
The Woolmark Company
