Alpaca Fiber Market Size

Alpaca Fiber Market size was valued at USD 3.1 Billion in 2023 and is anticipated to reach USD 4.55 Billion by the end of 2036, registering around 3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of alpaca fiber is assessed at USD 3.21 Billion.he growth of the market can be attributed to the rising government effort to provide benefits to the alpaca breeders, which in turn is expected to boost the production of alpaca fibers. Alpaca farmers in Shanxi Province, in north China, have reaped significant rewards from the nation's efforts to combat poverty, which have received a total investment of over 200 billion yuan (about 28.5 billion USD) from China's provinces, cities, and counties. Moreover, these funds have reformed the lives of the largest alpaca breeding base in China which hosts around 100 Australian Alpacas.

In addition to these, factors that are believed to fuel the market growth of alpaca fiber include the escalating inclination of the people towards fancy designer clothes, and the significant utilization in the automotive industry. Alpaca wool is utilized in applications that require heat retention and it is one of the major reasons for its utilization automotive industry. For instance, the automotive industry in 2017 was valued at approximately USD 75 million. As of 2018, about 65 million cars were manufactured across the globe. Alpaca fibers are utilized to make interior equipment such as, seat and seat cover, flooring, and others in cars. Alpaca fiber is soft and doesn’t feel scratchy, therefore, people choose alpaca wool over sheep wool. Furthermore, rising breeding of Alpacas is also anticipated to foster the growth of the market during the forecast period. All these factors are projected to influence the growth of the market positively over the forecast period.