Wool Scouring in New Zealand - Industry Market Research Report

Shorn: COVID-19 restrictions and declining exports are unravelling wool scourers' revenue

Wool scourers are facing challenging conditions. Falling wool production and prices are limiting the amount of wool available for scouring and the price it's sold at, significantly reducing revenue. The effects of the COVID-19 pandemic also negatively influenced wool scourers. Key export markets, such as China and Italy, reduced demand for New Zealand wool due to manufacturing disruptions, while general economic uncertainty and trade disruptions exacerbated already poor conditions. Revenue has fallen at an annualised 6.5% over the past five years, including a 20.8% fall in 2022-23, to total $253.3 million as export markets continue to struggle. Profit margins are declining to 2.5% in 2022-23. Operators primarily scour wool, which includes carbonising, carding and combing wool. Wool wax and grease production are also included in the industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.