The market for pure wool is expected to grow at a 5.5 per cent CAGR to $32.2 billion by 2026-end. Growth will be driven by factors like increasing urbanization, constant changes in lifestyle, changing styles and trends. Moreover increase in demand for warm clothing and blankets from cold regions is also expected to boost demand in the pure wool market.

The sheep wool segment held largest share of more than 30 per cent in 20202 pure wool market. Woven wool segment grew at 4.15 per cent CAGR from 2021-26. Woven wools are light weighted and soft wool fabric in plain weave. They can come in various designs and forms and can be used for a wide range of purposes such as casual clothing, covers for furniture and work clothing.

Asia-Pacific region held the largest share of 40 per cent in pure wool market in. The major exporters of wool fabric are from Asia Pacific region, namely China, South Korea and Japan. According to International Wool Textile Organization, China accounted for 21.1 per cent of world exports of wool fabric in the year 2019, Japan accounted for 4.1 per cent and South Korea accounted for 2.5 per cent.

According to the Australian Wool Exchange, prices increased 21.95 per cent since the beginning of 2021. As per Australian Wool Innovation, wool prices increased 0.57 per cent on July 16, 2021, decreased by 1.03 per cent on July 9, 2021, and increased by 2.5 per cent on June 18, 2021. This volatility and fluctuation in prices is majorly impacting growth of pure wool market.