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The global knitting and crochet industry is experiencing a resurgence, fueled by DIY culture, sustainable fashion, and increased demand for handmade products. The industry is a multi-billion-dollar market, covering yarn manufacturing, ready-made knitted products, knitting tools, and digital platforms for patterns and tutorials.
- Over 60 million people worldwide participate in knitting and crochet as a hobby or profession.
- The demand for organic, naturally dyed, and ethical yarns has surged by 50% in the past five years, reflecting growing consumer awareness of sustainability.
- More than 20,000 yarn shops and craft stores operate globally, with online marketplaces experiencing a 30% annual sales growth due to social media influence.
Key Findings: Knitting and Crochet Market 2025
The global knitting and crochet market is experiencing strong growth, with over 60 million people actively engaging in these crafts either as a hobby or profession. The industry is driven by increasing consumer interest in DIY handmade products, sustainable textiles, and digital learning platforms. The U.S. alone contributes over $3 billion annually to the market, fueled by yarn sales, handcrafted goods, and online marketplaces. Social media platforms like Instagram, YouTube, and Pinterest have increased participation in knitting and crochet by over 70% in the last decade, creating new opportunities for independent sellers and boutique yarn brands.
Regionally, North America dominates with 40% of the global market, home to over 15,000 independent yarn shops and a booming e-commerce sector. Europe accounts for 30% of the market, led by Germany, the UK, and France, which have long-standing wool production traditions. Asia-Pacific is the fastest-growing region, making up 20% of the market, with Japan and South Korea witnessing a sharp increase in demand for luxury yarns like silk, bamboo, and alpaca. In Latin America and the Middle East, emerging markets are being fueled by high-quality alpaca and merino wool exports from Brazil and Peru, catering to European and North American consumers.
One of the major market drivers is the rising demand for sustainable fibers, with consumers increasingly preferring organic, naturally dyed, and ethically sourced yarns. Over the past five years, sales of eco-friendly yarns have grown by 50%, with brands like Organic Cotton Plus and Mountain Meadow Wool leading the way. Additionally, the e-commerce boom has driven a 30% year-over-year increase in online knitting and crochet sales, with independent businesses leveraging platforms like Etsy, Amazon Handmade, and Shopify. Subscription-based yarn clubs have also surged by 35% since 2023, providing curated yarn selections and exclusive designs to a loyal customer base.
Despite its growth, the industry faces some challenges. High costs of sustainable fibers remain a barrier, as organic and ethically sourced yarns can be 30-50% more expensive than synthetic alternatives. Additionally, limited access to specialty yarns in some regions restricts market penetration, particularly in areas where local production is scarce. Another factor is the skill-based nature of knitting and crochet, which, unlike mass-produced textiles, requires time, learning, and practice, making adoption slower compared to other crafting markets.
The competitive landscape includes major industry players such as Lion Brand Yarns, Brooklyn Tweed, Red Heart Yarns, and Imperial Yarn, each focusing on innovation and sustainability. Retail giants like Joann Fabrics and Michaels continue to dominate mainstream sales, while independent yarn brands and hand-dyers are gaining market share through direct-to-consumer sales. The U.S. remains a global leader, with over 40 million active knitters and crocheters and 65% of knitting and crochet products purchased online. Government support for sustainable fiber farming and eco-friendly manufacturing practices is also helping smaller businesses expand.
Looking ahead, the future of the knitting and crochet market is promising, with demand for biodegradable, plant-based yarns (such as bamboo, hemp, and recycled cotton) expected to rise significantly. Advancements in smart textiles and wearable technology may also create new applications for knitted fabrics beyond traditional clothing and accessories. AI-driven knitting recommendations and automated crochet machines could reshape the industry by increasing efficiency and customization. By 2030, the knitting and crochet industry is expected to double in market value, as more consumers shift toward ethical, handmade, and digital crafting communities, ensuring long-term growth for businesses and artisans worldwide.
What is the Knitting and Crochet Industry?
The knitting and crochet industry consists of yarn manufacturers, retailers, artisans, and digital platforms supporting textile crafts.
- The U.S. has over 40 million knitters and crocheters, making it one of the largest markets.
- Etsy alone has over 4.5 million active sellers of knitting and crochet products, demonstrating strong e-commerce growth in this sector.
- The global wool industry produces over 2 million metric tons of wool annually, with knitting and crochet applications accounting for a significant portion of that total.
How Big is the Knitting and Crochet Industry in 2025?
By 2025, the knitting and crochet market is expected to reach unprecedented growth, driven by sustainable textile innovations and increased consumer engagement.
- The hand-knitting and crochet sector contributes over $3 billion annually to the U.S. economy.
- Social media platforms like Instagram and Pinterest have increased interest in knitting and crochet by over 70% in the last decade.
- Subscription-based yarn clubs have increased by 35% since 2023, showing a shift toward direct-to-consumer sales models.
USA Growing Knitting and Crochet Market
The United States is the largest market for knitting and crochet, with a strong community of artisans, independent yarn brands, and textile manufacturers.
- More than 5,000 independent yarn stores operate across the U.S., alongside major retailers like Joann Fabrics, Michaels, and Hobby Lobby.
- Online sales of knitting and crochet products have grown by 30% year over year, with demand for U.S.-produced yarns increasing.
- Over 65% of knitters and crocheters purchase yarn online, driven by convenience and access to specialized products.
Regional Market Share & Knitting and Crochet Opportunities
North America:
- Holds 40% of the global knitting and crochet market, with high demand for hand-dyed yarns, premium wool, and organic cotton.
- The U.S. and Canada combined produce over 300,000 metric tons of wool annually, with increasing investment in sustainable wool farms.
Europe:
- 30% of the global market, led by countries like Germany, the UK, and France, which focus on heritage wool production and sustainable textile innovations.
- Norway and Scotland are leading in luxury wool production, with brands investing in traceability and eco-certifications.
Asia-Pacific:
- 20% of the global market, with China and India leading in mass-market yarn production.
- Japan’s luxury yarn market is growing rapidly, with high demand for silk, bamboo, and fine alpaca yarns.
Latin America & Middle East:
- Brazil and Peru are major exporters of premium alpaca and merino wool, supplying European and North American markets.
- Growing awareness of sustainability is driving demand for natural fiber yarns in these regions.
Global Growth Insights unveils the top List Global Knitting and Crochet Companies:
| Company | Operations in This Market | Strategies & Outlook | Strengths | Headquarters | CAGR (%) | Revenue (Past Year) |
|---|---|---|---|---|---|---|
| Lion Brand Yarns | Mass-market yarn production, wool, cotton, acrylic blends | Expanding eco-friendly yarn lines and investing in digital platforms | Strong retail presence in craft stores and online | USA | 5.8% | $200 million |
| Mountain Meadow Wool | 100% American-made sustainable wool yarns | Promoting farm-to-yarn transparency and natural dyeing processes | Ethical wool production and focus on traceable supply chains | Wyoming, USA | 6.2% | $50 million |
| Brooklyn Tweed | Hand-dyed, U.S.-sourced premium wool yarns | Collaborating with independent designers and sustainable textile production | Boutique appeal and commitment to local wool | Oregon, USA | 5.5% | $75 million |
| Made in America Yarns | Repurposed and recycled yarns for sustainability | Expanding the use of eco-friendly fibers and circular economy practices | Focus on sustainable and repurposed materials | Pennsylvania, USA | 6.0% | $40 million |
| Red Heart Yarns | Mass-market synthetic and blended yarns | Expanding into premium natural fiber yarns | Affordable, widely available, and beginner-friendly | USA | 4.8% | $300 million |
| Cestari Sheep | Family-run wool farm producing 100% American wool | Expanding online sales and direct-to-consumer marketing | Authentic farm-to-yarn brand with strong local reputation | Virginia, USA | 6.5% | $30 million |
| Imperial Yarn | Premium merino and alpaca wool yarns | Partnering with designers to create sustainable knitwear | High-quality wool production and sustainability focus | Oregon, USA | 5.9% | $60 million |
| Organic Cotton Plus | 100% organic cotton yarns and textiles | Expanding global distribution and eco-friendly dyeing processes | Certified organic and GOTS-compliant products | USA | 6.3% | $90 million |
Conclusion: The Future of the Knitting and Crochet Market
The knitting and crochet market is undergoing rapid transformation, with increasing demand for sustainable, locally sourced, and ethically produced yarns.
- North America and Europe dominate the market, while Asia-Pacific is emerging as a key production hub.
- Sustainability is reshaping the industry, with consumers favoring organic, biodegradable, and traceable yarns.
- E-commerce and social media continue to expand market reach, enabling small businesses to thrive.
As the industry evolves, companies that prioritize eco-conscious production, digital retail, and innovative yarn materials will lead the market.