Which nations buy the most Australian wool

One country is emerging as a major buyer of apparel made from Australian wool, and its growth has been stellar.

Post-Covid sales into key markets of apparel made from Australian wool have been a mix of recovery and resistance as the fibre battles to gain market share.

While China may attract attention as Australia’s major raw-wool buyer, half of the end product goes to other countries, including the United States, Japan and Italy.

All those buyers spent more on wool apparel last year than in 2021, but some were yet to regain their pre-Covid purchase levels as they struggle under economic pressure.

In its analysis of key markets, Australian Wool Innovation notes the biggest recovery was in the US, which was now spending more on woollen clothing than it did in 2019.

“US wool apparel imports continued the positive trend ... closing out the 12-month calendar year of 2022 up 42.6 per cent on the previous 12 months (2021),” the analysis found.

“Backing this overall recovery story in the United States is the continued growth of Merino in active-outdoor wear as well as the growth in sales outside the traditional colder seasons.”

While demand for wool apparel in the US has topped pre-Covid levels, markets in Japan and the UK have not recovered.

While the US is the standout in terms of market share and recovery, other countries including Germany, France, South Korea and Italy were also spending more on wool apparel imports last year than in 2019.

The big fall, however has been in Japan, which “continues to struggle”, while the UK, another major player for wool apparel, had “not recovered its imports back to pre-pandemic levels”.

There is also uncertainty about how domestic sales of wool apparel will play out in China with little feedback on consumer sentiment.

But the AWI analysis showed post-Covid sales of wool apparel were being influenced by a host of factors including interest rates, the threat of recession and even the war in Ukraine.

“The optimism many commentators had for wool in 2023 is yet to fully play out as different countries around the world respond to the post-Covid era with other economic indicators now having significant influence over the demand for wool,” the report’s authors said.