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Why is Merino wool demand increasing?

16 Nov '25
5 min read
Why is Merino wool demand increasing?
Pic: Shutterstock

Insights

  • The Merino wool market is expanding from luxury runways to activewear.
  • Australia's Eastern Market Indicator (EMI) saw its steepest increase in three decades.
  • Challenges like price volatility and competition from synthetics persist, but innovation, technological advances, and rising eco-conscious consumer trends support long-term growth.

This momentum aligns with a broader shift in global fashion, where sustainability is driving renewed demand for Merino wool across premium, performance, and everyday apparel.

Known for its softness, breathability, and biodegradability, the fibre is increasingly favoured for its natural, traceable, and ethically sourced qualities, particularly among Gen Z and millennial consumers.

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