The global wool industry, valued at roughly $30 billion annually, produced around 1.76 million tonnes of greasy wool in 2023, according to the UN Food and Agriculture Organization (FAO). China, Australia and New Zealand together accounted for nearly 46% of total global output, underscoring their continued dominance in the sector.
China remained the world’s largest wool producer in 2023 with approximately 367,500 tonnes, representing about 21% of global greasy wool production. The country overtook Australia in the mid-2010s and has maintained the top position since, supported by large sheep populations in Inner Mongolia, Xinjiang and Tibet, alongside a vast domestic textile manufacturing industry.
China is also the world’s largest wool importer, purchasing around $1.5 billion in raw and semi-processed wool annually, with Australia supplying about 40% of those imports.
Australia ranked second with around 324,000 tonnes, accounting for roughly 18% of global production. Although no longer the top producer, Australia remains the dominant force in the international wool trade, contributing about 60% of global wool exports by value and producing much of the world’s finest Merino wool. The industry is supported by approximately 70 million sheep and around 60,000 wool growers, with New South Wales leading national production.
New Zealand held third place with 124,000 tonnes, or roughly 7% of global output. The country’s wool industry has declined from its peak in the early 1980s, when sheep numbers approached 70 million, to around 24 million in 2023 as agriculture shifted increasingly toward dairy and meat production. New Zealand wool is generally coarser than Australian wool and is primarily used in carpets, upholstery and outdoor textiles.
Turkey ranked fourth with around 80,200 tonnes. The country’s wool sector supports its extensive textile and carpet manufacturing industries, which include more than 35,000 textile-related companies employing several hundred thousand workers. Most Turkish wool comes from Anatolian and Akkaraman sheep breeds and is widely used in traditional kilim and hand-knotted rug production.
The United Kingdom followed in fifth place with approximately 71,700 tonnes. Once central to Europe’s medieval textile economy, Britain’s wool industry today relies on a flock of roughly 33 million sheep managed by about 45,000 farmers. Most British wool is medium-to-coarse fibre used in carpets, insulation, mattresses and military-grade textiles.
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Morocco ranked sixth with around 62,900 tonnes. The country’s wool production largely supports domestic weaving traditions, including Berber carpets, djellabas, and nomadic tent fabrics. Production has expanded significantly over recent decades, increasing nearly fivefold since the late 1970s.
Turkmenistan moved into seventh place with approximately 49,100 tonnes, replacing India in the top 10 rankings. The country’s production is centred on Karakul sheep, known for producing semi-coarse wool used in Turkmenistan’s UNESCO-recognised hand-knotted carpet industry. Karakul sheep are also associated with the declining Persian lamb and astrakhan pelt trade.
Iran ranked eighth with about 47,700 tonnes. Much of the country’s wool production is consumed by its globally recognised Persian carpet industry, particularly in centres such as Tabriz, Isfahan, Qom and Kerman. Iranian wool is generally thick and long-stapled, making it suitable for dense carpet weaving.
South Africa placed ninth with around 45,300 tonnes. The country’s Merino wool industry dates back to the late eighteenth century and remains concentrated in the Eastern Cape, Free State and Karoo regions. South African “Cape Wool” is widely used in shawls, hosiery and performance apparel.
Russia completed the top 10 with approximately 44,900 tonnes. Around 60% of the country’s flock consists of Merino or Merino-cross breeds concentrated in the North Caucasus region. Russia’s wool sector declined sharply following the collapse of the Soviet Union but has partially recovered through state-supported fine-wool breeding programmes.
India, which occupied the tenth position for much of the 2010s, has fallen out of the top rankings as production declined to around 33,900 tonnes, placing it near 16th globally. Analysts attribute the decline to rising sheep meat production and the predominance of coarse carpet-grade wool, which struggles to compete with imports from Australia and New Zealand.
The latest rankings highlight the existence of multiple wool economies operating simultaneously. China and Australia dominate large-scale production and export markets, while countries including Turkey, Morocco, Iran and Turkmenistan form a traditional “carpet-wool corridor” stretching from the eastern Mediterranean through Central Asia. Meanwhile, historically significant industries in the United Kingdom and South Africa continue to play important roles in rural economies despite declining from earlier peaks.
