Why is alpaca expensive?

Alpaca wool is significantly more expensive than sheep’s wool and synthetic fibers primarily due to scarcity and labor-intensive processing.¹

While a standard wool sweater might cost $50–$80, a genuine alpaca sweater can easily range from $150 to $300+. Here is the breakdown of why the price tag is so high.

1. Extreme Scarcity (Supply vs. Demand)

The most significant factor is the sheer difference in population numbers.

Sheep: There are over 1 billion sheep on the planet.
Alpacas: There are only about 4 to 5 million alpacas globally.
Geography: ~87% of the world’s alpacas live in one specific region: the high altitudes of the Peruvian Andes. This geographic bottleneck adds importation and logistics costs that don’t exist for sheep wool, which is produced in almost every country.

2. Low Yield per Animal

Alpacas cannot be mass-produced like synthetic materials or even sheep.

Shearing Frequency: An alpaca can only be shorn once a year.²
Usable Fiber: While an alpaca might produce 5–10 lbs of fleece, only a small portion (often just 30–40%) is high-quality “Prime Fleece” suitable for fine clothing. The rest is coarser neck and leg hair used for rugs or insulation.
“Baby Alpaca”: This specific grade (the softest type) is even rarer.³ It doesn’t necessarily come from a baby; it refers to the very first shearing of the animal (usually when it is 1–2 years old) or fiber that is naturally incredibly fine (under 21-23 microns).

3. Labor-Intensive Sorting

Sheep wool is often processed by massive industrial machines. Alpaca wool requires much more human intervention.⁵

Hand Sorting: Because alpaca fleece varies greatly in color (22 natural shades) and fineness across a single animal’s body, it is almost always sorted by hand. Expert sorters in Peru separate the fleece by micron count and color, a skill that takes years to master.
De-hairing: Alpaca fleece contains coarse “guard hairs” that must be mechanically separated from the fine undercoat. If this isn’t done perfectly, the sweater will be itchy.

4. Superior “Technical” Properties

The price is also driven by the fact that alpaca is technically superior to standard wool in several ways, allowing brands to charge a premium:

Hollow Core: Alpaca fiber is hollow (like a polar bear’s fur), making it lighter and significantly warmer than sheep’s wool.⁶
Hypoallergenic: Unlike sheep’s wool, alpaca contains no lanolin (grease).⁷ This means it doesn’t require harsh chemical scouring to clean, and it is safe for people who are allergic to wool.⁸
Water Repellent: The fiber naturally wicks moisture and is difficult to saturate.⁹

Summary: Is it worth it?

You are paying for a fiber that is rarer than cashmere in terms of global production volume, requires hand-sorting in the Andes, and possesses thermal properties that outperform standard wool. If you see “cheap” alpaca, it is almost certainly a blend (e.g., 10% alpaca, 90% acrylic).