More than five million lambs will be treated this year with mulesing pain relief, according to Bayer Animal Health.
Bayer senior brand manager Dave Ross says uptake has increased from around 10pc of lambs in 2007 to an expected 33pc treated this year.
"This sends a very clear message to wool customers and retailers around the world that animal welfare comes first with Australian woolgrowers," Mr Ross said.
The commercial availability of pain relief has given woolgrowers the first real option to improve welfare outcomes and has helped address the concerns of traditional mulesing raised by international retailers.
According to Bayer, wool produced on properties using pain relief can be marketed under the Better Choices brand, and be readily identified in the marketplace.
"This type of united recognition for pain relief and the Better Choices program will enable Australian woolgrowers to help maintain their competitiveness in global markets while the industry works towards further solutions to the mulesing issue," Mr Ross said.
According to Merino producer Mark Coates the incorporation of pain relief into his mulesing regime has also been a huge step forward in improving the recovery time of lambs.
"They don't hang around the cradle and sulk, they're off and straight back to their mothers," Mr Coates said.
"We can take them back to their paddock and be confident that they are going to mother up and it takes less time for their wounds to heal."