Cashmere, often dubbed as the “soft gold” of the textile world, is one of the most luxurious and sought-after fibers in the fashion and textile industries. Its unparalleled softness, warmth, and rarity have elevated it to a symbol of elegance and premium quality. But beyond its comfort and price tag, few know the intricate and labor-intensive journey it takes before reaching showrooms and retail shelves. For businesses operating in textiles, apparel manufacturing, or raw materials sourcing, understanding the origin and supply chain of cashmere is not just beneficial — it's essential for quality assurance, cost control, and sustainable practices.
Cashmere comes from the undercoat of specific breeds of goats, primarily native to high-altitude regions such as Mongolia, China, Iran, Afghanistan, and parts of entral Asia.
Its production requires precise care, a cold climate, and ethical shearing or combing processes. In this article, we explore everything from the biological source of cashmere to the global supply chain and the challenges faced by B2B businesses sourcing this precious material. Whether you're a manufacturer, supplier, or retailer, these insights will equip you with the knowledge to make informed decisions in your cashmere-related business operations.
Table of Contents
Understanding the Origin of Cashmere
Geographic Sources of Cashmere
How Cashmere Is Collected and Processed The Cashmere Supply Chain: From Goat to Garment
Challenges in the Cashmere Industry
Sustainability and Ethical Sourcing in Cashmere Production
Cashmere Quality Grading and Standards
Global Trade and B2B Market Dynamics of Cashmere
Understanding the Origin of Cashmere
Cashmere originates from the soft undercoat of specific breeds of goats, primarily the Cashmere goat (Capra hircus).
The fine undercoat fibers of these goats serve as natural insulation in harsh, cold climates. When spring arrives, these goats begin to shed this undercoat, which is then collected by farmers through gentle combing or shearing. Unlike wool, which can come from a variety of sheep breeds and is relatively abundant, cashmere is produced in far smaller quantities — each goat yields only about 150 to 200 grams of usable fiber per year.
This scarcity significantly contributes to its high market value. The outer coat, which is coarser and not used in luxury textiles, is separated during processing. The undercoat’s diameter (typically less than 19 microns) and its long staple length give cashmere its softness, warmth, and lightness — key qualities desired by textile manufacturers and luxury fashion brands alike.
From a B2B standpoint, sourcing raw or semi-processed cashmere requires careful evaluation of origin, fiber grade, and ethical sourcing practices. Understanding the natural origin and biological uniqueness of cashmere helps businesses align their procurement strategies with market expectations.
Geographic Sources of Cashmere
The major producers of raw cashmere are China, Mongolia, Iran, Afghanistan, India, and Nepal.
China leads the world in raw cashmere production, accounting for over 60% of global output. Inner Mongolia, an autonomous region in northern China, is particularly renowned for its high-quality fibers. Mongolia follows as a significant producer, with its nomadic herders continuing centuries-old traditions of goat herding and fiber collection.
Each geographic region offers a slightly different cashmere fiber due to climate, breed, and farming practices. For instance, Mongolian cashmere is typically longer and stronger, while Chinese cashmere is known for its fine micron diameter, which contributes to softness. In Iran and Afghanistan, cashmere tends to be coarser but more resilient, often blended with finer varieties for durability.
For businesses, understanding regional differences is critical when selecting a supplier. A table comparing key metrics such as average fiber diameter, staple length, and yield per goat across countries can assist in this decision-making process:
How Cashmere Is Collected and Processed
Cashmere is collected by combing or shearing the goats during molting season, followed by a multi-step cleaning and grading process.
The collection of cashmere is done with great care to avoid damaging the delicate fibers. In traditional settings like Mongolia, herders use metal combs to gently remove the undercoat once it starts to naturally shed in the spring. In larger farms or commercial settings, shearing is used, though it may risk mixing coarse guard hair with the fine undercoat.
Once collected, the raw fiber goes through several processing steps: dehairing (removing coarse outer hair), washing (removing natural oils and dirt), drying, carding (aligning fibers), and sometimes dyeing or spinning into yarn. This process can reduce the original weight by up to 60%, which means from 200g of raw cashmere, only about 80g of pure fiber may remain.
Processing plants are located near production areas to reduce transport costs and preserve fiber quality. Businesses involved in the supply chain must pay close attention to processing quality, as poorly processed cashmere can compromise final garment quality. Partnering with certified dehairing and carding facilities is critical in maintaining product standards.
The Cashmere Supply Chain: From Goat to Garment
The cashmere supply chain includes herders, collection cooperatives, processors, exporters, yarn spinners, textile manufacturers, and fashion brands.
In most cases, the supply chain begins with small-scale goat herders in rural or nomadic communities. These herders sell raw fibers to cooperatives or middlemen, who aggregate the fiber and deliver it to regional processing centers. From there, processed cashmere may be exported or further refined into yarn for domestic textile manufacturing.
Spinning mills convert dehaired fiber into yarn, which can then be woven or knitted into fabric. Fashion brands or manufacturers purchase yarn or fabric to produce garments such as sweaters, scarves, and coats. This complex supply chain involves multiple quality checkpoints and significant price markups at each stage.
For B2B buyers, managing this chain effectively means forming direct relationships with processors or cooperatives, setting quality standards early, and considering traceability platforms to verify fiber origin and ethical practices. Vertical integration is a growing trend in the industry to increase transparency and margin control.
Challenges in the Cashmere Industry
The industry faces challenges such as overgrazing, inconsistent quality, labor issues, and fluctuating prices.
One of the most significant environmental issues linked with cashmere is overgrazing. High demand has led to a surge in goat populations, particularly in regions like Mongolia, resulting in grassland degradation and desertification. This threatens long-term sustainability and prompts regulations that may affect global supply.
Quality inconsistency is another major challenge. Because much of the raw fiber is sourced from small-scale producers, there is significant variation in micron count, length, and cleanliness. Without standardized grading systems or third-party certification, B2B buyers risk purchasing subpar material.
Additionally, the industry grapples with ethical issues, including labor conditions in combing and processing centers, and the treatment of animals. Price volatility, driven by weather patterns, geopolitical instability, and currency fluctuations, further complicates long-term contracts and procurement strategies for manufacturers and brands.
Sustainability and Ethical Sourcing in Cashmere Production
Sustainable and ethical cashmere production involves eco-conscious grazing, animal welfare practices, and fair labor standards.
As awareness of environmental and social issues grows, many B2B companies are shifting toward sustainable sourcing. This includes working with suppliers who follow responsible grazing practices to prevent overgrazing, as well as ensuring that goats are combed rather than shorn, which is considered less stressful for the animals.
Certifications such as the Sustainable Fibre Alliance (SFA) and the Good Cashmere Standard (GCS) provide frameworks for ethical production, including traceability, animal welfare, and community development. These standards help companies ensure their supply chains are not only compliant but also marketable as sustainable.
Incorporating sustainability can also be a market differentiator. Buyers and end-users are increasingly favoring transparent supply chains, and sustainability certifications can lead to higher margins and customer loyalty in B2B deals.
Cashmere Quality Grading and Standards
Cashmere is graded based on fiber diameter, length, color, and cleanliness.
There is no universally enforced global standard for cashmere grading, but most buyers and processors evaluate cashmere on four main criteria: fiber diameter (fineness), staple length, natural color, and purity. The most desirable cashmere has a diameter of less than 15 microns and a staple length above 36mm.
Color also plays a role. White cashmere is the most valuable, as it can be dyed easily into any shade. Gray and brown fibers, while beautiful in their own right, are less versatile and thus slightly lower in value. Cleanliness refers to the amount of dirt, oil, and guard hair present, and impacts processing cost and yield.
For B2B buyers, insisting on third-party lab reports or sourcing from certified grading facilities can help mitigate risks and ensure fiber quality. It's also essential to train procurement teams on how to visually and tactically assess raw or semi-processed cashmere.
Global Trade and B2B Market Dynamics of Cashmere
The cashmere market is highly globalized, with China as the leading exporter and Europe and the U.S. as top consumers.
Cashmere exports are predominantly raw or semi-processed, with China controlling much of the upstream market. Europe, especially Italy and the UK, dominates in high-end garment manufacturing. Meanwhile, consumer demand in the U.S., South Korea, and Japan drives significant downstream revenue.
B2B platforms and trade fairs have become important venues for connecting raw material suppliers with buyers. Pricing depends on quality, certification, and availability. Businesses often engage in long-term contracts to stabilize prices, but spot market activity is common during peak demand seasons (Q4–Q1).
New entrants must navigate this competitive landscape by focusing on niche products (like organic or traceable cashmere), building supplier relationships, and leveraging digital sourcing platforms for transparency and scalability.
Conclusion
Cashmere is more than a luxurious fabric — it's a complex, globally traded commodity rooted in remote landscapes and ancient herding traditions. For businesses in textiles and fashion, understanding where cashmere comes from and how it's harvested, processed, and traded is key to building a sustainable and profitable value chain. From the steppes of Mongolia to high-end boutiques, every step in the supply chain plays a role in delivering quality and value.
By investing in transparency, sustainability, and education, B2B players can not only meet market demands but also contribute to a more ethical and environmentally conscious industry.
