Alpaca Fiber Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Alpaca Fiber Market in 2025 is estimated at USD 3.28 billion. The global Market size was over USD 3.2 billion in 2024 and is anticipated to witness a CAGR of around 3.2%, crossing USD 4.82 billion revenue by 2037. North America is estimated to generate largest share by 2037, attributed to higher demand for woolen clothing due to long-lasting winters and consumer preference for alpaca wool.
The growth of the market can be attributed to the rising government effort to provide benefits to the alpaca breeders, which in turn is expected to boost the production of alpaca fibers. Alpaca farmers in Shanxi Province, in north China, have reaped significant rewards from the nation's efforts to combat poverty, which have received a total investment of over 200 billion yuan (about 28.5 billion USD) from China's provinces, cities, and counties. Moreover, these funds have reformed the lives of the largest alpaca breeding base in China which hosts around 100 Australian Alpacas.
In addition to these, factors that are believed to fuel the market growth of alpaca fiber include the escalating inclination of the people towards fancy designer clothes, and the significant utilization in the automotive industry. Alpaca wool is utilized in applications that require heat retention and it is one of the major reasons for its utilization automotive industry. For instance, the automotive industry in 2017 was valued at approximately USD 75 million. As of 2018, about 65 million cars were manufactured across the globe. Alpaca fibers are utilized to make interior equipment such as, seat and seat cover, flooring, and others in cars. Alpaca fiber is soft and doesn’t feel scratchy, therefore, people choose alpaca wool over sheep wool. Furthermore, rising breeding of Alpacas is also anticipated to foster the growth of the market during the forecast period. All these factors are projected to influence the growth of the market positively over the forecast period.
Alpaca Fiber Sector: Growth Drivers and Challenges
Growth Drivers
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Growing Number of Alpaca Breeding – Rising number of alpacas directly boosts the production of fur. There are around 4 million alpacas all over the world. Out of these around 9% live in Bolivia, and nearly 30% are in New Zealand, the US, Canada, and Australia. Moreover, the largest share approximately 87% is held by Peru.
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Rising Government Efforts for Expanding the Supply of Alpaca Fibers– In 2020 the government of Peru has taken initiatives for focusing on alpaca fibers by creating a textile and clothing industry group. With around 6 million kg of alpaca fiber produced in 2019, Peru is the largest producer of alpaca fibers and generated around USD 191 million.
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Growing Demand for Eco-Friendly and Sustainable Garments – Sustainability has become a crucial factor for people when making clothing choices and fashion purchases, in October 2020, around 65% of people prefer sustainable clothing and it further increased to approximately 69% in May 2021.
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Rising Manufacturing of Natural Fibers – Over the past few years, natural fiber growth has been steady. According to various statistics, they account for 30% to 40% of the global market for fibers.
Moreover, India, China, and the United States has the largest contribution around 60% in the manufacturing of n
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Rising Expenditure on Luxurious Clothing – Alpaca fiber-made stuff, including clothes, chairs, and bags are very expensive and are counted as high-end products. The total revenue generated by luxury goods in 2022 was around USD 70 billion and it is expected to grow by approximately 3% by 2027.
Challenges
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Rising Protest Against Animal Fur- Activities are concerned about the treatment animal receive on farms. They are constantly put under pressure for growing the fur business. They might suffer from anxiety, stress, and other psychological and physical problem that make their lives intolerable. The governments of Austria and the United Kingdom have outright outlawed fur growing in their respective nations. This factor is likely to hamper the market growth.
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High Cost of Alpaca Fiber
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Cheaper Wool is Available in the Market
Alpaca Fiber Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
3.2% |
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Base Year Market Size (2024) |
USD 3.2 billion |
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Forecast Year Market Size (2037) |
USD 4.82 billion |
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Regional Scope |
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Alpaca Fiber Segmentation
Type (Huacaya, Suri)
The Huacaya segment is estimated to gain the largest market share over the projected time frame. The fiber from huacaya features crimpy waves that grow in bundles and reflect the light brightly. The growth of the segment can be attributed to the higher share of the Huacaya alpaca population in comparison to Suris Out of the total population of alpacas in the world, around 90% are Huacaya alpacas. Moreover, the popularity of Huacaya alpaca’s wool is owing to its fineness and ability to strongly protect against cold. Suris’ fur struggle to provide enough effectivity at higher altitudes because, despite its beauty, its fur is insufficient to shield them from cold conditions.
Application (Flooring, Textiles, Apparels, Industrial Felting)
The textile segment is expected to garner a significant share. One of the most valuable natural fibers in the world, alpaca fleece is a favorite of both hand-knitters and high-end fashion designers. They are used for creating some dine luxury clothing. The incredibly delicate, light, and strong material. In 2023, the luxury fashion industry is expected to generate around USD 112 billion in revenue. Furthermore, higher demand for sustainable clothing is expected to segment growth. One of the most environmentally friendly animals on the planet, alpacas have no adverse effect on the environment. The 22 natural hues that alpacas create substantially reduce the need for dyes. This conserves a substantial quantity of water and electricity.
Our in-depth analysis of the global market includes the following segments:
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By Wool Type |
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By Grading |
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By Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Alpaca Fiber Industry - Regional Synopsis
North America region is anticipated to hold lucrative revenue share by 2037 and higher demand for woolen clothing owing to the long-lasting winter. For instance, the presence of about 50,000 alpacas is observed solely in the United States. Additionally, Americans are more inclined toward fashionable pieces of woolen clothing. Since alpaca wool feels soft against the skin, people tend to choose alpaca wool over other types. Based on the data provided by Ag Marketing Resource Center (AGMRC) it was stated that 17 million pounds of greasy shorn wool were produced in the United States in 2020.
Companies Dominating the Alpaca Fiber Landscape
- The Alpaca Yarn Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Altifibers S.A.
- The Natural Fibre Company
- Zeilinger Wool Co.
- Stichting Agriterra
- Berroco, Inc.
- Mary Maxim Inc.
- Alpaca Owners Association, Inc.
- Plymouth Yarn Company, Inc.
- P & J Okell Ltd
Recent Developments
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Stichting Agriterra to develop a collective action step-by-step plan for BRIDGE (Building Rural Income through inclusive Dairy Business Growth) project, by reaching out to four Dutch Agripoolers in Ethiopia.
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The four cooperatives of the Agriterra company to exchange a visit that includes 10 people in each cooperative, a secretary, a bookkeeper, a representative, a women’s council representative, and 5 board members.
Author Credits: Rajrani Baghel
- Report ID: 4144
- Published Date: May 08, 2025
- Report Format: PDF, PPT
