Demand For Strong Wool Comes From Domestic Innovation

Wool Impact is seeing a projected growth in the usage of domestic wool across market categories. The information compiled by the industry body is based on data collected from domestic manufacturers during its first six months in operation.

“We foresee a doubling in the domestic use of strong wool in the next two years, potentially moving to an annual domestic production of New Zealand wool products using around 40,000 tonnes of clean wool by 2028,” says Chief Executive, Wool Impact, Andy Caughey.

The majority of New Zealand wool is exported and the returns to growers have reduced due to less international demand that has been compounded by the impacts from COVID-19. However, Wool Impact is seeing the tide turn as local brands take matters into their own hands by manufacturing wool-based products domestically.

“The perception of wool is changing as brands see it as a natural, sustainable material that offers innovation potential”.

“Proximity to the source means local brands are acutely aware that without sustainable farm gate prices, the supply of quality wools will continue to decline, resulting in a negative impact on the diversity of Aotearoa’s land use, and the robustness of our rural communities,” says Caughey.

Wool Impact has been canvassing local brands and businesses, as well as global markets, to understand where new opportunities exist, and advocate for increasing the usage of strong wool.

New Zealand strong wool is typically used in carpet and rugs.

According to Caughey, New Zealand’s carpet brands are experiencing increased demand in New Zealand which they’re well placed to meet with local manufacturing.

Wool Impact is also seeing growth coming through new and emerging market categories including insulation, acoustic tiles, furniture, flooring innovations and in the future from deconstructed fibres (particles, powders, and pigments).

“We’re seeing brands like Big Save, Honest Wolf, Wise Wool and FLOC using wool in innovative ways. If the predictions of brands actively advocating for wool in their product ranges are realised, then we will see a significant impact on wool demand and price with the added benefit of reducing our reliance on some of our volatile export markets,” says Caughey.

Representing wool as a responsible and sustainable fibre for consumers is crucial to increasing the demand for strong wool and generating greater returns for NZ farmers.

Advocating the current high standards of environmental care and animal welfare amongst New Zealand farmers was made possible via the extension of the Farm Assurance Programme to include wool late last year. Wool Impact has funded and supported the establishment of this assurance programme as a lever that will build brand trust and value in New Zealand wool globally.

“We’re very focused on supporting brands especially as they expand into global markets. It is brands, and sustained partnerships between them, their value chains and growers that will improve wool prices,” says Caughey.

Wool Impact is a collaboration between the Government and sheep sector partners under the Sustainable Food and Fibre Futures fund to grow revenues for wool. The $11.4 million, three-year programme has $6.9 million investment from sector partners and Government investment of $4.5 million.

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