The global wool yarn market is growing at four per cent a year. Wool yarn is used to manufacture curtains, carpets, etc. The increasing preference for upholstery fabrics among consumers to enhance the appearance of their home interiors is creating a lucrative impact on the wool yarn market. The textile market has been growing at a significant rate. Owing to this, textile manufacturers are demanding raw materials such as wool yarn. Thus growing textile industry is acting as an influencing factor for the global wool yarn market. Increasing consumption of wool in end-use industries, especially in regions such as Europe and Asia Pacific, is set to boost cloth production, which is expected to increase the demand for wool yarn. The increased penetration of online retailing in the clothing sector is indirectly driving market growth. Even with the reduction in overall wool production, the trade in yarn, apparel, and textile items has grown. This is expected to drive the demand for wool yarn from clothing and textile industries.

India is working on persuading growers to focus on wool production rather than meat production. Production in such countries is further backed by the availability of cheap labor. Hence a considerable amount of wool yarn produced in India is exported to international markets.