When Yulin's annual production capacity of cashmere down jackets reaches 16 million units—accounting for over 75% of China's total output in that category—the city is no longer merely a raw material supplier. Following the conclusion of the 32nd National Wool and Cashmere Conference, a more significant signal has emerged: the competitive logic of China's cashmere industry is being rewritten. Raw material volume is no longer the sole bargaining chip; standards systems, brand value, and full-chain coordination are becoming the new variables that determine a producing region's position.
Supply Restructuring Behind Price Uptrend
According to China Customs and industry public data, the cashmere price index has risen over 20% this year, with average prices in the first five months up approximately 17% year-on-year. Premium raw material prices have hit recent highs. This price surge is not simply demand-driven; its deeper cause lies in a deliberate adjustment of supply structure.
Professor Yang Yuxin from Northwest A&F University revealed a key characteristic at the conference: while cashmere production hit a historic high in 2025, goat herd numbers are declining, creating a clear pattern of "fewer animals, more cashmere." This means improved breeding and per-unit yield have become the core drivers of industry growth, while the old path of expanding herd size for higher output is being phased out.
For buyers, this shift means raw material grading and quality assessment are becoming significantly more important. Fiber fineness, length, and cashmere yield directly determine product premium potential. A pure price-comparison procurement strategy will struggle to adapt.
The Industrial Chain Logic of the Yulin Model
Data disclosed by Wang Huasheng, Chairman of the Yulin CPPCC, shows the city has gathered nearly 300 upstream and downstream enterprises, building a complete chain from forage planting and breeding to raw cashmere collection, dehairing, brand development, and market sales. The Yuyang Light Textile Industrial Park, with total investment of nearly 6 billion yuan, has completed Phase I with 14 standardized factory buildings and 24 enterprises in production; Phase II is set for full completion next year.
The core logic: use industrial parks to lower entry costs, fill critical gaps in R&D and quality inspection, and unify external branding through a regional public brand. More than 40 cashmere enterprises in Yuyang District produce over 5 million units annually, with products exported to Europe, the US, Japan, Korea, and Central Asia—demonstrating the model is gaining traction.
Notably, Yulin plans to leverage Milan Fashion Week to push brand globalization, signaling that regional competition has extended from manufacturing capability to international fashion discourse. For factories, whether they can embed themselves in this branding process will determine their position in future order allocation.
Standards and Coordination: Industry Impact
The China Livestock Products Circulation Association signed a "15th Five-Year Plan" strategic cooperation agreement with Yulin, and stated it will continue participating in the revision of group, industry, national, and international standards, focusing on raw material grading, quality evaluation, and the entire market trading chain.
The industry implications are significant. China possesses the world's richest animal fiber resources, with the cashmere industry valued at 120 billion yuan, projected to grow to 180 billion yuan by 2030 at roughly 8% annual growth. However, domestic cashmere has long faced constraints in international markets due to incomplete traceability systems and inconsistent quality evaluation standards. Improved standards will directly impact export pricing power and international recognition.
Consumer-side changes also deserve attention. Natural, green cashmere products are expanding from traditional apparel into home textiles, outdoor, and guochao light-luxury segments, meaning downstream brands will demand stricter functionality, traceability, and consistency from raw materials.