Where is cashmere made today?

China and Mongolia are the two dominant forces in the cashmere world today, producing over 90% of the world’s raw cashmere fiber.

However, the answer changes depending on whether you are asking where the goats live (the raw material) or where the sweaters are knitted (the manufacturing).

Here is the global breakdown of the industry:

1. Where the Fiber Comes From (The Raw Material)

Cashmere goats require freezing cold winters to grow their soft undercoat.¹ This limits production to specific geographic regions:

China (Inner Mongolia): The undisputed giant. China produces roughly 70% of the world’s raw cashmere. The region of Inner Mongolia is famous for producing the finest, whitest fiber (often called “White Gold”).²
Mongolia: Produces about 15–20% of the global supply. Mongolian cashmere is slightly coarser and often naturally brown or grey, requiring more bleaching if dyed into bright colors.
Others: Small amounts come from Iran, Afghanistan, and Kyrgyzstan, but this fiber is generally coarser and considered lower grade.

2. Where the Yarn & Clothing Are Made (The Manufacturing)

Once the fiber is harvested, it is shipped to one of three major processing hubs:

China (The Volume Leader):
- Today, China is not just the grower; it is also the factory.³ Most of the world’s cashmere sweaters—from Uniqlo to high-end brands like Naadam—are spun, dyed, and knitted in Chinese factories.
- Advantage: Vertical integration.⁴ Because the goats and the factories are in the same country, supply chains are faster and cheaper.
Italy (The Luxury Leader):
- Italy imports raw fiber from China and Mongolia to process it in famous mills like Loro Piana and Cariaggi.⁵
- The “Italian Cashmere” Label: If a sweater says “Made in Italy,” it usually means the fiber was grown in Asia but spun and knitted in Italy. Italian mills are famous for their water finishing techniques, which create a softer, more durable yarn.
Scotland (The Heritage Leader):
- Scottish mills (like Johnstons of Elgin or Todd & Duncan) focus on a drier, denser knit.
- The Difference: Scottish cashmere feels “harder” at first touch but pills less and lasts longer than almost any other type.⁶ They are known for traditional tartans and heavy cable knits.

Summary

If you buy a cashmere sweater today:

The Goat almost certainly lived in China or Mongolia.
The Making happened in China (most likely), Italy (if it was expensive), or Scotland (if it was traditional).