The International Wool Textile Organisation (IWTO) conference in Beijing, China, has heard of growing demand for ethical and environmentally sustainable fibres.

The balance of this real and growing trend, coupled with the continued shortage of supply is presently being counterbalanced by the immediate concern over mulesing but more importantly, the slowdown in the US economy.

How this influences the world’s economy is still to be seen but history would suggest a slower global demand for wool will be cushioned by low supply according to former Woolmark market intelligence economist, Chris Wilcox.

He told the 450 IWTO delegates in Beijing that the demand for raw wool is still strong but as the global economy is the key driver at retail, a dip in raw wool demand must be expected.

Buffering the fall will be the simple shortage of wool.

"This, together with the move towards natural fibres will be sure to balance the volatility to some degree. We may well see a fall but it may well be a softer fall than we have seen in the past," he said.

Capturing this growing "clean and green" market has been one of the focuses of the Beijing event and accreditation and assurance systems are being put in place to show and prove to the world's customers that wool is the sustainable choice.

AWI declared it was repositioning the old Woolmark business from an organisation that sold Woolmark licences to an one that formed business partnerships through marketing contributions.

Woolmark will now do this in two ways, through "top tier" or high level brands such as Doir and Gucci through "Australian Merino" and through "Woolmark" on the mid-level brands such as Marks and Spencer and Driza-bone.

Woolmark is being revamped through three new programs; MERINOfresh in the suit market, MERINOtouch in the knitwear trade and MERINOcool for trans-seasonal woven garments.

AWI chief executive officer, Craig Welsh, also said the measure of success of the new Woolmark would be kilograms of new wool sold, increased brand exposure for Australian Merino and Woolmark and the education and training of retail staff.