New Zealand ranks third with 133,100 tonnes, while Turkey, Morocco, Iran, Sudan, South Africa, Russia, and India complete the top ten list. These countries play crucial roles in regional textile industries and global wool supply chains, as reported by IWTO Market .

Global wool production has remained relatively stable in recent years, with gradual improvements in processing efficiency. Clean wool, the fibre after removing grease and impurities, continues to be in high demand, especially as sustainable textiles gain traction.

A recent IWTO report highlights that demand for natural fibres like wool is rebounding as fashion and home textile brands pivot toward eco-friendly materials.

According to Textile Trade Buddy , the global wool market could reach US $21.6 billion by 2032, driven by sustainability-focused consumers and brands. Yet synthetics still dominate the textile world due to cost efficiency and large-scale production, notes a CIRFS industry report .

Australia’s dominance is anchored in its Merino wool, prized globally for its softness, strength, and yield. The country’s well-developed farming systems and favourable climate help maintain its leading position. As IWTO notes, Australia sets global benchmarks in quality and auction pricing.

China, on the other hand, combines large-scale wool production with a powerful textile manufacturing infrastructure. It not only produces raw wool but also processes and exports high volumes of wool garments and fabrics worldwide.

Meanwhile, New Zealand’s strong export-driven farming industry keeps it a consistent third-place producer, known for crossbred wool varieties suited for carpets and upholstery.

The wool industry faces increasing scrutiny over environmental impact, particularly methane emissions from sheep farming. A Wall Street Journal report recently highlighted methane as a “blind spot” in the fashion industry’s climate strategy, placing added pressure on animal-based fibre sectors.

In response, wool producers are adopting more sustainable farming practices and certifications that ensure better animal welfare and lower emissions. IWTO reports that regenerative agriculture and non-mulesed wool certifications are on the rise globally.

However, the industry still battles challenges like droughts in key producing regions, rising feed and transport costs, and market fluctuations that affect pricing, issues regularly tracked by Fibre2Fashion .

Innovation remains a strong focus as researchers explore alternative fibres and production methods. In India, for example, scientists are developing milkweed-based fibres that could serve as lighter, warmer alternatives to traditional wool, according to The Times of India .

Despite these innovations, wool remains irreplaceable for many industries due to its natural durability, biodegradability, and ability to store carbon.