Global alpaca fiber market was valued at $846.5 million in 2021 and is expected to generate $1.2 billion by 2031, with a CAGR of 3.5% during the 2022 to 2031, as per a report from Allied Market Research.
The increasing demand for sustainable and eco-friendly textile goods, consumer awareness of the product benefits, and the expanding alpaca fibre fashion outlets are the major drivers of the market growth.
However, the high cost of production of alpaca fibres acts as a restraint to the global market growth. The report also highlights that the versatility of alpaca fibres and the increase in R&D to improve the quality and consistency of alpaca fibres will present new growth opportunities for the global alpaca fibre market.
The COVID-19 pandemic has had a negative impact on the alpaca fibre market, as lockdowns and restrictions imposed by governments led to a decline in consumer spending on luxury items, including alpaca fibre products. This resulted in reduced demand for alpaca fibres and a decline in revenue for businesses operating in the alpaca fibre industry.
Based on application, the textile segment contributed to the largest share of more than half of the global alpaca fibre market in 2021 and is expected to dominate the market during the forecast period. The Huapaya fibre segment grabbed the highest share of more than 90% of the overall alpaca fibre market in 2021 and is projected to maintain its dominance in 2031. Moreover, the superfine segment grabbed the highest share of nearly one-third of the overall alpaca fibre market in 2021 and is projected to maintain its dominance in 2031.
The LAMEA (Latin America, Middle East, and Africa) region was the largest market for alpaca fibre in 2021, accounting for more than two-thirds of the global market and is likely to dominate in terms of revenue in 2031, according to the report. The same market is expected to show the fastest CAGR of 3.9% during the forecast period.
The LAMEA region is home to many alpaca farms, particularly in countries such as Peru, Bolivia, and Chile, which are major producers of alpaca fibre.
