China's wool textile industry ran steadily overall in 2025. Despite geopolitical tensions, raw material price swings and diverging consumer demand, the industry strengthened resilience and upgraded toward high-end, functional and green products, according to the China Wool Textile Association.

Production

Wool yarn output grew 0.2% year-on-year; wool fabric output fell 10.7% (narrowing by 8.9 points from H1). Product structure kept upgrading toward high-end, functional and green segments.

Trade

  • Exports of wool textile raw materials & products: USD 12.2 bn, down 0.9% YoY
  • US accounted for 21.8% of exports; EU 20.1% (+6.2% YoY)
  • ASEAN share kept rising — a key growth driver
  • Wool sweater export volume +13.8%; cashmere yarn +28.9%

Outlook

Demand for outdoor and home wool products keeps growing domestically. Emerging markets (Belt & Road, Africa, Latin America) are becoming the core engine of export growth. Australian wool prices showed a "low-then-high" pattern and are expected to keep rising in 2026.