Know Your Wool (KYW): Where does our wool come from?
Last updated: February 9, 2026
Woola’s products are made of low-grade wool that would otherwise go to waste because there isn’t enough demand for it. Without a viable market, this type of wool is often burned or buried in the ground. We use a material that already exists in large volumes and rarely has a clear or profitable use.
This post explains where our wool comes from, why we deliberately use low-grade wool and why British wool will make up most of our materials from 2026 onwards, with Estonian wool remaining a smaller part of our supply.
Similarly to how the financial sector has a standard Know Your Customer (KYC) due diligence practices, we like to think of this as our Know Your Wool (KYW) process.
Wool starts with sheep (obviously)
Image source: Unsplash
Sheep grow wool continuously. To keep them healthy, they need to be sheared at least once a year. This happens whether there’s demand for the wool or not. Annual shearing is recommended under guidance from the UK Department for Environment, Food & Rural Affairs.
However, not all wool is suited for today’s clothing market. A significant share of wool produced each year is robust, mixed-quality, or naturally uneven in colour. While technically usable, these lower-grade wool types often fall outside modern consumer expectations: extreme softness, visual uniformity, and low prices.
As synthetic fibres have taken over many everyday applications—offering softness and consistency at scale—demand for these types of wool has steadily declined. As a result, large volumes of low-grade wool are left without a viable, high-value outlet and are at risk of being discarded or underused.
This wool still has excellent functional properties. But because it doesn’t fit fashion standards, it’s mostly undervalued and sold for very little. And it exists in much larger quantities than people realise.
That’s where we come in.
We use low-grade wool on purpose
32 million kilograms of wool is produced annually in the UK, as a by-product of the sheep farming industry. It is greatly undervalued and under-used in textiles, clothing and many other industries.
Woola doesn’t compete with fashion brands for fine merino or premium fibres. We use wool that already exists and has strong performance properties, despite being widely overlooked.
Specifically:
a mix of wool qualities that are currently under-utilised
wool that’s already been shorn as part of normal animal care
wool that isn’t suitable for garments but performs extremely well as a protective material (tests conducted by the WTAE show that British wool is the bulkiest in the world, meaning it retains its shape and performs well under pressure)
Most importantly, we’re using wool that the textile industry would otherwise discard. That’s intentional.
By creating demand for this type of wool, we give it a clear purpose instead of letting it sit in storage—or worse, become a disposal problem.
Creating demand where demand is low
Low-grade wool isn’t always easy to sell. Sheep need to be shorn every year, but without consistent demand at fair prices, wool is often stored instead of sold, delaying farmers’ income.
By buying this wool, we:
create additional demand for a material with limited markets
give farms a reliable outlet, even when prices are low
help keep wool moving instead of piling up
We’re not changing how sheep are farmed. We’re making better use of what’s already there.
Minimal processing, by design
Wool is repeatedly washed and treated to meet textile standards—a level of processing we don’t require.
We wash our wool once. That’s enough to clean and prepare it for use in protective packaging.
For comparison:
bedding-type wool used in actual bedding is usually washed twice
wool for producing clothing requires further processing
By stopping at a single wash, we:
reduce water and energy use
keep our footprint lower without compromising performance
avoid unnecessary processing and chemical treatments
Switching to British Wool in 2026
Until now, we’ve primarily worked with Estonian wool. From Q1 2026, we’re transitioning to British wool, with Estonian wool remaining a smaller part of our supply.
British wool is collected, graded, and sold through British Wool, a farmer-owned co-operative that has operated at national scale for decades. The organisation is collectively owned by around 30,000 sheep farmers across the UK, ensuring transparency, consistency, and direct farmer representation throughout the system.
Their system aligns closely with how we already think about materials—just at a much larger and more established scale.
As part of the transition, Woola is applying to become a British Wool licensee. Licensee status gives us the ability to use the The Shepherds’ Crook mark. The mark confirms that the wool used in a product has passed through British Wool’s controlled and transparent system.
What makes British Wool a good fit?
1. Verified origin
Every kilogram of wool in the British Wool system is:
collected directly from UK farms
graded into a quality group based on the unique characteristics found in each fleece
marked with a batch code
independently tested by the Wool Testing Authority Europe (WTAE)
analysed for yield, fibre diameter (micron), colour, and plant matter
Only five laboratories worldwide are accredited to test wool to International Wool Textile Organisation (IWTO) standards. All British wool is independently tested through one of these globally accredited facilities.
That means the data behind the wool is consistent, comparable, and verified. British Wool’s level of sorting and documentation is unusual in global wool markets—and it gives us confidence that the wool we use is consistent and fit for purpose.
2. Traceability built into the supply chain
British Wool operates a closed supply chain. They collect the wool, grade it, test it, and sell it themselves.
Because the wool doesn’t change hands multiple times, traceability isn’t an add-on—it’s the default.
Switching to British Wool shortens Woola’s supply chain by around 50%, thanks to fewer processing steps and less return shipping to scouring and processing mills.
3. Animal welfare and farming standards
There are no factory sheep farms in the UK.
British sheep farming is based on small farms, with the average farmer having around 300 sheep. In global terms, that’s closer to a smallholder than an industrial operation.
This matters because:
animal welfare is hands-on and visible
land management is local and long-term
farming decisions are personal, not automated
All British wool producers also operate under UK legislation, which is among the strictest in the world for:
animal welfare
transport
environmental protection
land management
This legal framework adds another layer of assurance on top of British Wool’s own system.
How this builds on our KYW approach
Woola’s KYW (Know Your Wool) approach was built to give us confidence in origin, quality, and handling.
British Wool’s system does the same thing, but it’s:
much older
implemented at national scale
independently tested and audited
proven at large scale
This gives us the security that the wool we use meets the standards we expect.
Same material, stronger foundation
Our material philosophy isn’t changing. We’re still:
working with low-quality wool that doesn’t fit the textile industry
creating demand for wool that’s otherwise undervalued
keeping processing simple and minimal
choosing function over appearance
By switching to British wool, we gain stronger verification, clearer traceability, and a system that’s built to last. Which means we can keep doing what we do—just with even more confidence in where our wool comes from.
If you’d like to try Woola packaging, request a free sample or chat to our sales team.
You can keep up with us (and our fun The Office-inspired Woola Shorts) on social media: Facebook, Instagram, and LinkedIn.
Frequently asked questions
-
Wool is a natural fibre grown by sheep. The fleece helps regulate their body temperature—keeping them warm in winter and cool in summer. For health and welfare reasons, sheep must be sheared regularly, regardless of whether there is demand for the wool.
In Europe, wool is usually a by-product of sheep farming. A large share of it is too coarse or inconsistent for the textile industry. When there’s no market for this type of wool, farmers may have no choice but to store it, compost it, or dispose of it.
Some sheep breeds, such as Merino, are raised specifically for their fine, soft wool, mainly in Australia and New Zealand. That’s not the wool we use.
Woola works with a mix of wool qualities that are currently under-utilised.
-
Waste wool is wool that goes unused because there isn’t enough demand for it.
Most commonly, this means wool that’s too coarse, uneven, or mixed in colour to be used for clothing or other textiles. While high-grade textile wool is superfine and soft, waste wool is more robust.
Even so, waste wool still has the natural properties wool is known for:
temperature regulation
water resistance
shock absorption
fire resistance
These qualities make it well suited for protective packaging—even if it’s not suitable for fashion.
We’re purposefully using wool that the textile industry doesn’t want.
-
Because it already exists, and it needs a job.
Low-grade wool is produced every year as part of normal sheep farming, but demand for it is limited. By buying this wool, we:
create additional demand for an undervalued material
give farms a reliable opportunity to sell their wool
help keep wool moving through the system instead of piling up
We don’t change how sheep are farmed. We make better use of what’s already there.
-
We wash our wool once. That’s enough to clean it and prepare it for use.
For comparison:
low-grade wool used in bedding is usually washed twice
textile wool is often washed and treated multiple times
By stopping at a single wash, we:
reduce water and energy use
keep our footprint lower
-
The only responsible way to source wool is to pay farmers fairly. Sheep need to be cared for and sheared every year, and that work comes with real costs.
The price we pay for low-grade wool reflects that. At the same time, the raw wool itself is only one part of the total cost. Washing, carding, manufacturing, and labour make up a much larger share of the final price.
-
From Q1 2026 onwards, Woola will primarily use wool sourced through British Wool.
British Wool collects wool directly from UK farms and operates a closed, controlled supply chain. Every batch of wool is:
traceable back to British farms
independently tested to international standards
graded and documented before salecription
-
Knowing where wool comes from:
confirms it’s responsibly sourced
provides clarity on animal welfare and farming practices
ensures the wool is handled and processed transparently
supports long-term use of wool as a viable material
Our own KYW (Know Your Wool) approach was built around these principles. British Wool applies the same thinking—just through a system that’s older, larger, and independently tested.
Working with British Wool helps us ensure sustainable practices throughout our supply chain and production — up until the point you and your team receive our packaging. With this transparency, we hope you have the same confidence in Woola.
