Fine, medium and coarse wools are used for different consumer products, each of which is influenced by different key drivers. The key drivers of the fine wool market are economic growth in the major consumer countries, consumer preferences, fabric design and fashion trends. The outlook for fine wool is positive, as the demand for luxury apparel is expected to increase in key markets such as the US, Europe, Japan and Korea over the next 1-5 years. Prospects for medium wool will be influenced by price competition from other fibres, continuing consumer interest in natural fibres and new products such as easy-care garments. A modest recovery in economic conditions should support demand for medium fibre diameter wool in China and potential growth in emerging markets such as India and Eastern Europe. New product applications for interior textiles, particularly upholstery and rugs, could develop new consumer markets, and fibre and product attributes such as easy-care and soft lustre may increase consumer demand for medium wool. Key drivers for coarse wool are economic growth, price and attributes of competing fibres or materials, home ownership, prices and lifestyle trends. Increased home ownership in China and Eastern Europe is a positive driver for the coarse wool market, as is the emerging use of wool upholstery in mass-transport vehicles. After 14 years of turbulence, the Australian wool industry is well positioned to respond directly to global demand for consumer products.
