It’s not surprising that performance fleece has become so popular – Natural fibers offer more benefits than petroleum-based fabrics like polyester. It’s better at moisture wicking and thermoregulation, and it doesn’t spread microplastics into our blood and environment.
This has helped to increase the popularity of merino wool clothing over the years, especially in the outdoor apparel industry. According to several wool brands interviewed by GearJunkie, demand for merino wool, which comes from a special breed of sheep that originated in Spain, has increased rapidly as more consumers around the world seek soft, comfortable alternatives to synthetic, plastic-based fabrics.
However, the increasing demand for casual woolen clothing has coincided with a decline in supply. Global wool production has declined 30% growth in the last decade, and is seen in 2026 Highest wool prices since 2018IntelligencePrices increased 50% from last year. And Australia – by far the world’s largest wool producer – estimates that the country’s 2025/2026 season There will be a further decline of 9% in production compared to last year.
That means your favorite wool clothes could soon become even more expensive, according to Lawson Glidden, whose family has been selling wool in America for 100 years.
“The general trend for the next few years is for prices to increase,” Glidden, Minus33’s president and CEO, told GearJunkie. “It is becoming more difficult to keep prices from rising as time goes on.”
a more complex picture
Even without a decline in global supply, merino wool isn’t cheap to begin with. As a natural fiber, wool is dependent on the ability of farmers to raise sheep, which is affected by changes in climate. Ongoing drought has played a major role in the decline in wool production in recent years.
Minus33 is part of a small but growing number of brands offering 100% merino wool apparel. The brand sells its lightweight T-shirts for $70. It’s not cheap, but it’s still less expensive than GearJunkie’s top pick in our Best Merino Wool Shirts guide: the Ibex Naturalist Crew Neck, which has an MSRP of $90 and includes only merino wool. Our guide’s best budget option is from Marino Ridge. It costs $65, but its fleece is blended with 13% nylon – a common practice among many fleece brands.
“Wool is very expensive. A large portion of the price is being charged just for the wool,” Glidden said. “It’s a little barrier to entry. But when you think about plastic in your blood, you start to consider it more.”
Other brands interviewed for this story – such as New Zealand-based performance wool maker Nuyarn, and Australia’s largest wool company Woolmark – were both more measured in their assessment of the industry.
Representatives of these companies said that other factors besides wool production were equally important, such as the cost of transportation, manufacturing and packaging. They were hesitant to make harsh predictions, but still agreed that the cost of merino wool clothing is likely to increase if current conditions continue – especially in the premium outdoor apparel market.
“If global supply remains constrained and demand from the outdoor, running and performance categories continues to grow, cost pressure on fine merino products is likely to continue,” said Monica Ebert, Nuyarn’s vice president of sales.
Other warnings
Wool prices are likely to rise in the short term. Global interest in wool has gradually increased over the past 10 years, with significant gains in China, India, the US and Europe. However, the same price increase could attract more farmers to raise sheep for wool – and potentially drive prices down again in the long term. This is especially true in America, where Increasingly sheep farming was avoided In favor of other agricultural options, such as cattle for meat production.
“Wool is clearly experiencing a moment. Prices are rising, demand is changing, and for the first time in years, there is real energy around the fiber. After a long period of decline, that alone is worth paying attention to,” morning agyclips Reported in April. “But stepping back, the bigger picture hasn’t changed completely overnight. Wool is still working its way back from years of low returns, and the same challenges of labor, market access and price fluctuations haven’t disappeared.”
Other short-term consequences of the price increases could be that more brands decide to combine merino wool with synthetic fibers. Some brands claim it improves durability, but that doesn’t change the fact that there is plastic in clothing now.
Perhaps most importantly, many of the climate trends driving down wool production are also affecting almost all natural fibres, said Stephen Hill, Woolmark’s international general manager.
“Looking ahead, wool is well-positioned to benefit from several long-term consumer trends, including natural fibers, high-performance apparel, sustainability and the ‘buy less, buy better’ mentality,” Hill told GearJunkie.
Minus33’s Glidden had a simple way to explain why people will continue to buy merino wool even as prices rise: “Once people get used to being comfortable, they don’t go back.”
