The global wool textile industry stands at a crossroads of old and new growth drivers. The 95th International Wool Textile Conference concluded on June 24 in Dalang Town, Dongguan, revealing the town's significance in the global supply chain: annual garment output exceeds 900 million pieces, total industrial chain transaction value surpasses 72 billion RMB, and one in five sweaters worldwide originates here. More telling is the conference theme, 'Weaving the Future with Intelligence: Wool's Health and Digital Life,' signaling that wool textiles are no longer a simple labor-intensive manufacturing sector but a field being redefined by technology, consumption, and sustainability.
Resilience Behind the Numbers
Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), presented a nuanced industry performance picture. From January to April, profits of above-scale textile enterprises surged 19.3% year-on-year, with an operating profit margin of 2.9%, significantly exceeding market expectations. Retail sales of apparel, footwear, hats, and knitwear by units above designated size totaled 512.13 billion RMB, up 8.1% year-on-year, accelerating 5 percentage points from the previous year. Consumer-side recovery directly boosted upstream confidence.
However, investment data shows divergence. From January to May, fixed asset investment in the textile sector grew 10.8% year-on-year, while apparel and chemical fiber sectors fell 10.3% and 14.5% respectively. This indicates capital is consolidating in higher-tech upstream links, while downstream garment manufacturing faces overcapacity and order outflow. Textile and apparel exports from January to May totaled $116.73 billion, up 0.1%, with textile exports rising 1.7% but apparel exports falling 1.6%, reinforcing the shift from finished garments to intermediate goods like fabrics and yarns.
How the Intelligent Economy Reshapes Wool Textiles
AI's penetration into textiles is accelerating faster than expected. Sun cited data showing the global AI market reached $757.58 billion in 2025, projected to exceed $900 billion by 2026. In China, daily token calls surpassed 140 trillion, up over 40% from end-2024. These macro figures translate into tangible restructuring across design, production, and management in the wool supply chain.
Yueda Textile's 'Lighthouse Factory' case is instructive: smart manufacturing reduced labor per 10,000 spindles by about 70%, boosted total labor productivity fourfold, cut unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-assisted design system improved overall design efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetics Brain' reduced sample development costs by over 60%. These data points converge on one conclusion: AI is no longer a concept but a tangible cost reducer and efficiency multiplier.
For wool textile enterprises, the urgency of intelligent transformation is also driven by labor market shifts. The global 'one-person company' and 'handcraft economy' are booming, with newly registered sole proprietorships in China up 47% year-on-year in the first half of 2025. Worker skill requirements and job content are rapidly changing, making the traditional model of relying on a large pool of skilled labor unsustainable.
Experience Economy Drives Product Upgrading
Global consumption fragmentation is reshaping the value logic of wool products. Consumers no longer focus solely on warmth but incorporate health, emotional connection, and self-expression into purchase decisions. Wool, as a natural fiber, aligns perfectly with this trend—biodegradable, recyclable, with natural moisture regulation and antibacterial properties. These attributes become rare selling points in the digital age.
But challenges remain. R&D investment intensity in China's textile industry rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. While fast, this still lags behind global leaders. High-performance fiber capacity accounts for over one-third of the global total, but applications are extending beyond traditional textiles into aerospace and marine engineering, forcing wool enterprises to redefine competitors—not just other fabric mills, but new materials, synthetic fibers, and even plastics.
Green Manufacturing Becomes a Hard Constraint
Advanced green technologies like non-aqueous dyeing and digital printing are accelerating adoption. Digitalization rates in key industry links reached 63.2%, above the national manufacturing average. In 2024, 30 textile enterprises were included in the 5G factory roster. These numbers reflect improved resource efficiency and proactive responses to green trade barriers. Policies like the EU's Carbon Border Adjustment Mechanism (CBAM) have already exerted real pressure on exporters, making green capabilities a prerequisite rather than a bonus.