The World's Top 10 Wool Producing Countries

The global wool industry is worth roughly $30 billion annually, with greasy wool production reaching about 1.76 million tonnes worldwide in 2022 per the UN Food and Agriculture Organization. Three countries (China, Australia, and New Zealand) together account for about 46% of that total. China overtook Australia as the largest producer roughly a decade ago and has held the top spot since, while Australia remains the dominant force in the export market and the global supply of fine Merino wool. The figures below reflect FAOSTAT greasy wool production for 2023, the most recent year with comprehensive comparative data. One notable shift from earlier rankings: India, long fixed at #10, has now slipped out of the top ten as production declined toward 33,900 tonnes, while Turkmenistan has moved up to seventh place on the strength of its Karakul-breed wool clip.

1. China - 367,500 tonnes

After holding second place behind Australia for decades, China overtook Australia as the world's largest greasy wool producer in the mid-2010s and has expanded the lead since. The 2023 FAOSTAT figure of about 367,500 tonnes amounts to roughly 21% of global greasy wool output. China's lead reflects both its massive sheep population (concentrated in Inner Mongolia, Xinjiang, and Tibet) and the deep integration of wool into the domestic textile industry. China is also the world's largest wool importer, bringing in roughly $1.5 billion of raw and semi-processed wool each year, with about 40% of those imports sourced from Australia.

2. Australia - 324,000 tonnes

Although it has been displaced from the top spot, Australia remains the most important country in the global wool market. The 324,000-tonne 2023 figure represents about 18% of global greasy wool production, but Australia accounts for a much larger share of the international wool trade (about 60% of all wool exports by value) and produces the bulk of the world's finest Merino-grade fibre. All Australian states except the Northern Territory are involved in wool production, with New South Wales (more than 119 million kg of greasy wool in 2022/23) the largest state producer, followed by Victoria and Western Australia. Roughly 60,000 wool growers and 70 million sheep support the industry, and the Australian Merino remains the global benchmark for soft, fine-fibre wool used in apparel.

3. New Zealand - 124,000 tonnes

New Zealand produces about 7% of global greasy wool and ranks consistently third worldwide. The country's wool industry peaked in the early 1980s when the national flock approached 70 million sheep, but by 2023 sheep numbers had fallen to roughly 24 million as the agricultural sector shifted toward dairy and meat. The industry's wool boom traces back to 1951, when surging demand during the Korean War tripled wool prices within days and drew massive new investment into sheep farming.

New Zealand wool is generally coarser and stronger than its Australian counterpart, which is largely a function of climate and topography. Most of the clip goes into carpets, upholstery, and outdoor textiles rather than fine apparel. The Romney, Coopworth, and Perendale breeds dominate the flock, and sheep are typically shorn twice per year.

4. Turkey - 80,200 tonnes

Turkey ranks fourth with about 80,200 tonnes of greasy wool, roughly 4.5% of global output. The Turkish wool clip primarily supplies the country's deep textile and carpet industries, which together employ several hundred thousand people across more than 35,000 textile-related companies. Anatolian and Akkaraman breeds dominate the local flock, producing mostly carpet-grade fibre used in the famous Turkish kilim and hand-knotted rug traditions. Turkish wool production has trended modestly upward over the past decade as livestock counts have recovered.

5. United Kingdom - 71,700 tonnes

The United Kingdom produces about 71,700 tonnes of greasy wool annually and remains one of the most historically significant wool nations in the world. English wool was the backbone of the medieval economy from the 13th to 15th centuries, when the Cotswolds, East Anglia, and the Welsh borders supplied much of Europe's textile industry. The Hundred Years' War (1337-1453) hardened London's role as the financial centre of the trade, and the legacy persists in institutions like the Worshipful Company of Woolmen, founded in 1180. The British flock today comprises roughly 33 million sheep tended by about 45,000 farmers. Most of the British clip is medium-to-coarse wool used in carpets, mattresses, insulation, and military-grade textiles.

6. Morocco - 62,900 tonnes

Morocco's wool clip of about 62,900 tonnes feeds an unusually robust domestic textile tradition centred on Berber carpet weaving, djellaba production, and traditional nomadic tent fabrics. Production has expanded dramatically over the past five decades, growing roughly fivefold from about 11,000 tonnes in 1977. The Beni Ahsen, Beni Guil, and Sardi breeds dominate the Moroccan flock, and most of the clip stays inside the country to supply local artisan and industrial weavers rather than entering international markets.

7. Turkmenistan - 49,100 tonnes

Turkmenistan has climbed into the top ten with about 49,100 tonnes of greasy wool annually, displacing India from the rankings. The bulk of the country's clip comes from Karakul sheep. This ancient fat-tailed breed is indigenous to the Bukhara region straddling the Turkmenistan-Uzbekistan border. Karakul wool is semi-coarse and well-suited to the famous Turkmen hand-knotted carpets, which carry official UNESCO Intangible Cultural Heritage recognition (added in 2019) for their distinctive geometric patterns and natural-dye traditions. The Karakul breed also produces the curly newborn-lamb pelts marketed as Persian lamb or astrakhan, though that trade has declined significantly in recent decades due to shifting fashion and animal-welfare concerns.

8. Iran - 47,700 tonnes

Iran produces about 47,700 tonnes of greasy wool and ranks among the global leaders in handmade carpet production, an industry that consumes most of the country's domestic clip. Iranian wool is generally thick and long-stapled, ideal for the dense pile of Persian carpets. Water scarcity in many sheep-rearing regions has complicated the scouring (washing) phase of wool processing, and the Iranian flock has also faced pressure from the meat market, which often draws sheep before they reach prime fleecing age. Despite these constraints, the country sustains a high-quality wool clip that supplies its famous carpet centres at Tabriz, Isfahan, Qom, and Kerman.

9. South Africa - 45,300 tonnes

South Africa produces about 45,300 tonnes of greasy wool and has one of the longest fine-wool histories outside Australia. Merino sheep arrived at the Cape in the late 1780s when the Spanish royal flock dispatched six animals as a gift to the Dutch governor, and selective breeding since then has produced what is now globally marketed as Cape Wool. The South African Merino flock numbers around 24 million sheep, concentrated in the Eastern Cape, Free State, and Karoo regions. Cape Wool tends to be slightly less elastic than Australian Merino but commands strong prices for shawls, hosiery, and base-layer apparel.

10. Russia - 44,900 tonnes

Russia rounds out the top ten with about 44,900 tonnes. The Russian flock numbers roughly 21 million sheep across both household farms (often holding fewer than 100 animals) and large commercial operations running up to 25,000 head. Roughly 60% of the flock is Merino or Merino-crossed and concentrated in the North Caucasus, particularly Dagestan, Stavropol Krai, and Karachay-Cherkessia. The wool industry collapsed during the post-1991 transition (Soviet-era processing capacity was geared heavily toward military uniforms and fell precipitously after dissolution) and has been rebuilding since the mid-2000s through state subsidy programs targeting fine-wool flocks.

India And The Falling Off The Top Ten

India sat in the tenth slot through most of the 2010s on the strength of one of the world's largest sheep flocks (about 64 million head), but production has slipped to roughly 33,900 tonnes in the most recent FAOSTAT data, pushing the country to around 16th globally. The decline reflects a strategic shift: Indian sheep meat output has more than doubled in 15 years while wool output has stagnated, since Indian breeds (Deccani, Marwari, Nellore) produce mostly carpet-grade fibre that competes poorly with imports from Australia and New Zealand. About 85% of the Indian clip is too coarse for apparel use and is consumed almost entirely by the domestic carpet sector.

What The Rankings Tell Us

The top ten reflects three different wool economies operating in parallel. China and Australia dominate the upper tier by sheer scale, with China producing more raw greasy wool but Australia leading in fine-fibre quality and export value. Turkey, Morocco, Iran, and Turkmenistan represent the carpet-wool corridor running from the eastern Mediterranean across Central Asia, where coarse-staple fibre feeds traditional weaving industries with deep cultural roots and protected heritage status. The United Kingdom and South Africa retain historically significant industries that have shrunk from their nineteenth- and twentieth-century peaks but still anchor regional rural economies. India's drop out of the top ten and Turkmenistan's rise into it are the cleanest recent shifts in the rankings, but the overall ordering has been relatively stable since the mid-2010s.