China has become the largest producer of raw cashmere, estimated at 19,200 metric tons (in hair) per year (2016). Mongolia follows with 8,900 tons (in hair) as of 2016, while Afghanistan, Iran, Turkey, Kyrgyzstan and other Central Asian republics produce lesser amounts. The annual world raw production is estimated to be between 15,000 and 20,000 tons (13,605 and 18,140 tonnes) (in hair). Pure cashmere, resulting from removing animal grease, dirt and coarse hairs from the fleece, is estimated at 6,500 tons (5,895 tonnes). Ultra-fine Cashmere or Pashmina is still produced by communities in Kashmir but its rarity and high price, along with political instability in the region, make it very hard to source and to regulate quality. It is estimated that the average yearly production per goat is 150 grams (0.33 lb).

Pure cashmere can be dyed and spun into yarns and knitted into jumpers (sweaters), hats, gloves, socks and other clothing, or woven into fabrics then cut and assembled into garments such as outer coats, jackets, trousers (pants), pajamas, scarves, blankets, and other items. Fabric and garment producers in Scotland, Italy, and Japan have long been known as market leaders. Cashmere may also be blended with other fibers to bring the garment cost down, or to gain their properties, such as elasticity from wool, or sheen from silk.

The town of Uxbridge, Massachusetts, in the United States was an incubator for the cashmere wool industry. It had the first power looms for woolens and the first manufacture of "satinets". Capron Mill had the first power looms, in 1820. It burned on July 21, 2007, in the Bernat Mill fire.

In the United States, under the U.S. Wool Products Labeling Act of 1939, as amended, (15 U. S. Code Section 68b(a)(6)), a wool or textile product may be labelled as containing cashmere only if the following criteria are met:

such wool product is the fine (dehaired) undercoat fibers produced by a cashmere goat (Capra hircus laniger);
the average diameter of the fiber of such wool product does not exceed 19 microns; and
such wool product does not contain more than 3 percent (by weight) of cashmere fibers with average diameters that exceed 30 microns.
the average fiber diameter may be subject to a coefficient of variation around the mean that shall not exceed 24 percent.
Approximately how much cashmere is produced each year?
It is estimated that about 6,500 tons of cashmere is produced each year.