Demand gauged for ethical wool
New research has identified a notable level of buyer demand for ‘ethical wool' in overseas apparel markets. A study in Japan, Western Europe and the US by the Woolmark Company suggests this could become an emerging product category for Australian woolgrowers and the textile industry over the next five years.
The study included large apparel stores with turnovers of US$500 million or more, as well as niche companies - typically the pioneers of ethical products. The study was commissioned by AWI and the Queensland Department of Primary Industries and Fisheries.
Ethical wool products are defined as those made from fibre grown in an environmentally sustainable manner and according to recognised animal welfare, human rights and social justice standards.
Most respondents said they were interested in sourcing ethical wool in the future, with more than half indicating they would pay a premium for on-farm audited and certified ‘ethical Australian Merino wool'.
But while there is strong growth forecast for the demand of ethical wool, the research shows that overall the market is likely to remain a small, niche business. Ethical apparel in all fibres is currently estimated to represent 1.4 per cent of total apparel sales, growing to 4.8 per cent by 2011.
The research found demand for ethical wool was strongest and growing in segments where wool does not traditionally have a significant presence, including in casual wear, sportswear and intimates.
It also revealed that growth in demand could not rely alone on the promotion of wool's ethical production credentials. Quality, functionality and ‘next-to-skin' comfort would also have to meet consumer expectations.
Ian Rogan, AWI's general manager of wool production, says that while Australian Merino wool is regarded as one of the world's more sustainably grown fibres, the research will assist AWI to help growers and textile manufacturers meet the stringent conditions required in the production of ethical wool.
The research will feed into the federally funded AWI Wool Pathways Project, which is establishing a framework and standards for an industry-wide system of accounting for chemical residue, animal welfare and the environmental credibility of Australian Merino wool.
Mr Rogan expects the system to be rolled out in mid-2007 after modules to test standards are finalised and an intensive on-farm trial program has been completed.
"Using this system, we can work with those companies identified in the research who are interested in sourcing and promoting ‘ethical Australian Merino wool'," Mr Rogan says. "We now have an indication of the level of interest, the specifications and the standards required by potential supply chain partners to meet these market requirements."
More information: Ian Rogan, 02 9299 5155, ianrogan@woolinnovation.com
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