The strategy to capitalise on wool's sustainability credentials as a natural fibre is starting to pay off.
Big carpet manufacturer Bremworth claims the COVID-19 pandemic has also helped accelerate a trend towards more natural fibres.
"Price is no longer the dominant driver of purchase decisions, and a growing segment of consumers are rethinking their use of plastics and their impact on the environment," the company said.
Bremworth employs over 400 people across New Zealand and Australia, with sales teams based in NSW, Victoria, Queensland, South Australia and Western Australia from a manufacturing base in New Zealand.
The company said its move away from the use of synthetic materials two years ago to wool carpets was paying off.
Its research shows consumers now favour wool carpet much more strongly than at any time in the past three years.
Former WoolProducers Australia president Ed Storey said the Australian wool industry had one of the best sustainable stories to be told in the modern world, but getting it across to the world was not an easy task.
Wool's environmental credentials are today a key part of the Australian Wool Innovation message through its Woolmark arm.
Mr Storey said wool was finally being recognised more than ever as one of the most sustainable fibres in the world.
Bremworth chief executive Greg Smith told the company's recent annual meeting the wool carpet sector was witnessing a global renaissance.
"While life continues to adapt to the pandemic, we are also witnessing a global renaissance, a return to nature and natural fibres, and a recognition of our individual impact on the environment," Mr Smith said..
"There is growing consumer awareness that the environmental cost of plastic is too high.
"Bremworth is positioning itself as an advocate at the forefront of long-term change," Mr Smith said.
"As part of this evolution, we are developing products today that can be safely returned to the environment from which they came, and the results from the past year reassure us that our messages are resonating with consumers and the market is increasingly recognising the value that we offer."
Chairman George Adams said the company now has the foundation needed to rebuild wool's share of the flooring market and grow its business.
"While headwinds created by COVID-19 have constrained the macroeconomic operating environment, they have also helped to accelerate trends towards more natural fibres," Mr Adams said.
"Price is no longer the dominant driver of purchase decision, and a growing segment of consumers are rethinking their use of plastics and their impact on the environment," he said.
Bremworth's earnings for the financial year were $95.5 million against $111m the previous year.
Non-wool carpet revenue accounted for $19m of the fall.
The company said it was moving away from high volume commercial customers to premium residential customers.