Alpacas are adorable, fluffy and funny, but why are products made with it so expensive? It is a question I am often asked as the founder of my brand Yanantin Alpaca. There are many good reasons why alpaca wool is expensive.
Alpaca wool is expensive due to its exceptional quality—being strong, soft, and warm. Limited supply also drives up the cost, as alpacas are only shorn once a year. Additionally, the finest fibers come from alpacas raised in healthy, natural environments, restricting large-scale production.
Alpacas aren’t just cute—they produce one of the finest, most durable, and exclusive wools on the planet. Totally worth the price tag! Let’s dive into why the cost of alpaca wool is actually a good thing.
Labor Intensive
The main reason why alpaca wool is expensive is because of its labor intensity. Shearing alpacas isn’t as straightforward as other animals, like sheep, for example. You need to know exactly how to shear the animals to maintain its high-quality while keeping the animal calm and quiet. This requires expertise, and expertise comes at a cost.
The Shearing Process
I wrote a full article about how alpaca wool is made, so if you’re interested in that, you can read all about it here. Here’s a quick summary of the shearing process, just for you to see how labor intensive it is.
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The process involves several people: one or two to keep the animal calm and restrained, often its caretakers or specialized shearers.
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Shearing the alpaca takes time; for instance, the fleece needs to be dry, so the animals are gathered and sheltered 24 hours beforehand. Part of this preparation is to sort the alpacas by race, color, and age.
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When the shearing begins, the alpaca is securely held, ensuring no harm is done. This is crucial to prevent any sudden movements that could cause injury.
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The alpaca is laid flat on the ground or a special table with its feet stretched out, often placed on sacks to make collecting the wool easier.
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The shearing is done with animal-friendly equipment, and quality equipment requires a worthwhile investment.
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Shearing requires real technical skill: it's crucial to remove the wool in one smooth cut, without going back and forth. The goal is to keep the fleece in as large, intact pieces as possible to produce higher-quality yarn.
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After shearing, the fleece is sorted, washed, and dried.
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Next, the fleece is roughly spun onto cones, ready for knitting. This can be done either by hand or with machines.
(Source: https://issuu.com/aeaandina/docs/cartilla_de_hilado_artesanal119)
Shorn Once a Year
The careful timing of alpaca shearing plays a huge role in why the wool is so expensive. Alpacas are shorn only once a year, which allows their fleece to grow long and strong, which is key to producing high-quality wool. It also means that the supply is limited. This rarity increases its value.
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Once a Year Shearing:
Alpacas are typically shorn once a year, usually in the spring or early summer. This timing ensures their wool has grown long enough to be used for high-quality yarn.
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Longer fibers are stronger, resulting in sturdier yarn.
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If alpacas are sheared more often, the wool will be shorter and weaker, making it more likely to break.
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The Hair Growth Cycle
Alpaca hair grows about 7 centimeters annually, but the growth slows down after the first year. This is why it is actually necessary to shear alpacas!
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If the alpacas aren’t shorn, the tips of their hair can become fragile due to prolonged exposure to sunlight and heat, which can cause them to burn off or deteriorate.
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This weakens the wool, but annual shearing prevents this issue and keeps the wool healthy and strong.
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Ideal Wool Length
For the best quality wool, the alpaca’s hair needs to reach a minimum length of 7 centimeters.
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This length aligns perfectly with the timing of their annual shearing, ensuring the wool is at its best when harvested.
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It takes time and patience to achieve this quality, which is reflected in the price.
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The Regrowth Process:
After shearing, the alpaca’s hair regrows, and the fresh grass at the start of summer provides extra energy to support this process.
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This helps ensure the new fleece is healthy and strong, contributing to the overall quality of the wool and well-being of the animal.
So, the combination of limited supply, the time it takes to grow quality wool, and the skilled labor required to shear it all factors into why alpaca wool comes at a higher price.
The Importance of Shearing Sparingly
Alpacas rely on the natural warmth of their fleece, so it’s crucial not to shear them too often or at the wrong time. If they’re sheared outside of the spring or summer months, or more than once a year, they might not have enough wool to keep warm.
In Peru, for example, the “shearing season” runs from October to March, but the actual shearing happens only in October and November. This timing ensures the alpacas have enough time to grow their fleece back before the colder months, when they need it most to protect against cold waves and harsh weather.
That said, in warmer places like the Southern USA, alpacas need to be sheared more often to avoid overheating in the summer. So, it’s all about finding the right balance based on the climate!
High Quality and a Premium Product
Now that you’ve seen how the shearing process ensures high-quality standards, it’s clear that alpaca wool itself is of exceptional quality. The high-quality features of alpaca wool—combined with its sustainability and the labor-intensive process—make it a premium product. All of these factors contribute to its higher price compared to other fibers.
Here’s a long list of qualities attributed to alpaca wool:
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Isolating
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Elastic
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Lightweight
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Soft
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Water repellent
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Windproof
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Resists odors
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Stain resistant
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Flame resistant
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Hypoallergenic (it does not contain lanolin)
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Itch-free
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Wrinkle-free
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Lasts a lifetime (generations, even!)
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Sustainable
Read more about the qualities of alpaca wool here (Coming soon!).
Alpacas Live in a Unique Natural Habitat
Alpacas are native to the Andes, found in Peru, Bolivia, Ecuador, and Chile, where they live at high altitudes ranging from 2,500 to 4,500 meters (8,200 to 14,800 feet) above sea level.
At these altitudes, the weather can be extreme, and alpacas rely on their fur to protect them from icy winds and frequent downpours. Temperatures can drop below 0°C (32°F) and rise above 30°C (86°F) in a single day. As you can imagine, their fur is essential for keeping them safe from these harsh, fluctuating conditions.

Thanks to their natural habitat, alpaca fiber has evolved to be hollow, with tiny pockets of air that trap heat. This helps keep them cool in hot weather and warm in the cold.
The fact that alpacas live in such a unique and extreme environment plays a big role in the cost of their wool. Here’s how:
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Adaptation to Harsh Conditions: Their wool has evolved to be extremely effective at protecting them from these conditions, which makes it a rare, high-performance fiber.
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Specialized Wool: Its unique structure makes alpaca fiber incredibly valuable because it has natural insulating properties that other fibers don’t.
It’s not just any fiber—it’s one that’s been naturally engineered to withstand extreme conditions. Well done, Pachamama ❤️
Alpacas Don’t Shed
Alpacas don’t have the natural ability to shed their fur, meaning they don’t lose their hair on their own. This can lead to overheating, especially during the warmer months when temperatures rise. To help them stay cool and comfortable, alpacas need a little extra help: they must be sheared once a year.
It’s not harmful for alpacas to be sheared—in fact, they benefit from it! Shearing helps prevent them from getting too hot and keeps their fleece healthy. So, while they don’t shed naturally, a yearly shearing is good for their well-being.
Without natural shedding, old wool can accumulate and become matted, which could lower the quality of the fleece. Regular shearing ensures that the wool remains in top condition, and the high-quality fiber is a key factor in the premium price of alpaca wool. The careful attention to wool labor contributes to the higher cost of alpaca wool.
Who Makes Your Item?
While alpaca yarn is primarily produced in South America, particularly in Peru (the largest producer), other countries like the USA, Australia, and the UK also use alpaca wool in their products. As alpaca farms gain popularity, the demand for skilled workers to produce high-quality wool and items grows too.
You might assume that labor in South America is cheap, and while it can be, it’s important to remember that not all cheap labor is fair or ethical. Many brands, organizations, and NGOs have emerged with the goal of ensuring safe and honest work environments, providing fair wages to workers.
As a result, some brands may charge higher prices, but this often reflects their commitment to paying fair salaries to the people behind the products.
When you invest in sustainable fashion, it’s not just about the quality of your clothes—it’s also about the quality of life for the people who make them. So, always take a moment to look into the producers behind the brands you support.
At Yanantin Alpaca, we take pride in being a social enterprise. Everything we do revolves around more-than-fair pay, flexible working hours, and training. We believe in paying our knitters a salary that truly reflects their value and worth, ensuring they are compensated fairly for their skills and hard work.
Why Prices Vary
When comparing prices, it’s important to consider how the item is made and the materials used. Several factors can influence the cost of a product:
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Production Method: How the item is crafted matters. Whether it’s woven, knitted, or crocheted can affect the cost. The size and type of stitches (small versus large) and whether single or double yarn is used all influence the production time and labor, which impacts the price.
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Alpaca Blends vs. Pure Alpaca: One of the biggest factors affecting price is the composition of the yarn. If a product uses a blend of alpaca and other fibers, like acrylic or synthetic yarns, it will usually be cheaper than a product made with 100% pure alpaca wool. These blends help lower costs, but they can affect the feel, warmth, and durability of the final product.
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Fair Pricing: If something looks "too good to be true," it might be. Some brands market their products as alpaca wool but mix it with cheaper materials to cut costs. Make sure to check the details of the item, such as fiber content, to ensure you’re getting what you’re paying for.
When comparing alpaca products, always look at the specific details—whether it's 100% alpaca wool or a blend—so you can be sure you're getting a fair price for the quality and materials used.