Wool sector ‘cautiously optimistic’ but tensions remain
After several years of “sustained difficulty”, the wool sector has reasons to be “cautiously optimistic”, with merino prices rising 25% in the second half of 2025, according to the International Wool Textile Organisation (ITWO).
Global sheep numbers fell in 2025, constrained by competition from cropping, sheep meat and changing land use.
Natural fibre volumes are steady but polyester continues to increase. Added to the geopolitical backdrop, this means the industry’s investment in transparency and traceability is all the more important, it said.
“Significant progress has been made in building the digital infrastructure that links farms to markets and gives buyers confidence in the provenance and credentials of the wool they purchase,” it said.
However, woolgrowers have only seen better prices for six months. To encourage farmers to commit farm resources to wool, the industry needs to see a run of years with prices above the rolling five-year average to balance out the 2021-2025 period, it added.
The outlook for the coming season on the demand side is highly uncertain, driven by ongoing geopolitical conflict and trade tensions.
The 20th edition of ITWO Market Information report is available to download.
Photo by Sam Carter on Unsplash
