As per a We Market Research report, the global alpaca fiber market is anticipated to experience a Compound Annual Growth Rate (CAGR) of 3.2 per cent from 2024 to 2033. The market is expected to reach a value of $5.32 billion by the end of 2033, marking a significant increase from $3.65 billion in 2023.

The primary driving forces behind this growth are the increasing demand for opulent and soft fiber, coupled with a growing preference for ethical and fair trade products. These factors are expected to fuel the expansion of the alpaca fiber market on a global scale.

Countries such as India, China, and Indonesia are poised to play a pivotal role in the future growth of the alpaca fiber market. India, with its expanding middle class population and a well-established textile industry, represents a substantial opportunity for alpaca fiber. The country's strong presence in global markets further enhances its capacity to produce high-quality products.

China, known for its efficient and cost-effective production of alpaca fiber products, is set to contribute significantly to the market's growth. In 2022, the Chinese apparel company Li Ning introduced a line of sportswear crafted from alpaca fiber, showcasing the country's capability to innovate in this market.

Indonesia has also taken proactive measures to boost the alpaca industry, including the implementation of research programs and farmer training initiatives. In 2020, PT. Indo Alpaca, an Indonesian company, established a large-scale alpaca farm aimed at producing substantial quantities of high-quality alpaca fiber. This move not only contributes to Indonesia's self-sufficiency but also positions the country for potential exports in the alpaca fiber market.