The global wool supply chain is undergoing a fundamental shift from capacity competition to data-driven value chains. On June 26, the 95th International Wool Textile Conference concluded in Dalang, Dongguan, where over 50 experts from Australia, Uruguay, Europe, and China delivered a clear message: sustainability must now be quantifiable, traceable, and certifiable.
Traceability Systems as New Industry Infrastructure
Zhang Yudong, director of the China Wool Textile Association, disclosed that a wool traceability platform has been launched, using the national industrial internet identification system to assign a unique digital ID to each wool bale. This means key inspection data and logistics information from farm to yarn, fabric, and garment will be recorded on-chain. For Chinese wool, long plagued by consumer trust issues and green trade barriers, this digital solution offers a viable path forward.
Australia also unveiled its integrated certification schemes, AWSS and AWTH, designed to consolidate existing farm codes and testing resources. Katyana Armen of the Australian Wool Exchange emphasized that the new system avoids duplication, reduces costs, and ensures scalable implementation, providing a standardized model for global traceability.
Uruguay showcased its South American model, where 60% of pastures are natural grasslands. Every wool bale is individually numbered, enabling full traceability from farm to market. Uruguayan wool is exported to China, Italy, Germany, and other countries, backed by decades of farm coding and testing infrastructure.
Europe and South America Seek Unified Standards
Jyrki Sura of Sura & Co called for a complete traceability loop from shearing to recycling in Europe. He stressed that certification chains must include four elements: identity, integrity, compliance credentials, and transfer data. Currently, differing standards and terminology across countries drive up costs. Sura urged the industry to adopt a globally unified traceability standard with interoperable digital data and mutual recognition.
Federico Brugnoli of SPIN360 noted the chaos in current sustainability assessment standards. A group of experts from 16 countries has introduced a unified assessment guide for bio-based natural materials like wool, silk, and cashmere. A planned Natural Materials Institute will conduct standardized environmental and social sustainability research, publish authoritative reports, and foster global collaboration for natural fibers.
Chinese Companies' Digital Restructuring
Zheng Qi of Shanghai Shepherd Textile Technology Group shared the Anhui Sustainable Fashion Industrial Park practice, which replaces traditional capacity-focused competition with a digital ecosystem. The park features an NAO AI virtual loom for material innovation, a smart rapid-response center, and a green weaving center with recycled wool certification, creating a closed loop for recycled wool.
Zhou Xinxiang of Shengzhou Youngor Worsted Textile outlined three transformation dimensions: tech-driven innovation to leapfrog from follower to leader; fashion aesthetic upgrade from basic weaving to value creation; and green low-carbon foundation for long-term sustainability. These approaches reflect a consensus among leading Chinese wool enterprises that pure price competition is unsustainable.
Consumer Demand Drives Supply Chain Transparency
Data from Tmall's New Product Innovation Center shows that Merino wool apparel is growing rapidly in China, with fabric becoming a top purchasing criterion. Lin Xiaofei, general manager of Anta Champion, noted that wool's natural advantages—thermoregulation, breathability, antibacterial properties—are making it a key material for outdoor sports brands. Consumer awareness is pushing supply chains to provide more transparent and sustainable product information.
Zhu Mei of The Woolmark Company explained that product development now covers eight categories, including casual wear, functional apparel, workwear, footwear, home textiles, and automotive textiles. The versatility of wool is being redefined, all built on the foundation of traceable green supply chains.