A Celebration of Wool took over Kingston's Old Bus Depot Markets on Saturday, with more than 45 stalls showcasing everything from yarn, to rugs and even knitted jumpers.

This year was the first time the annual event was expanded to two days, with activities set to continue over Sunday.

Among those on display were workshops as well as sheep-shearing demonstrations, which were carried out by Canberra-based shearer Ian Elkins.

While the saying of the Australian economy riding on the sheep's back might not be as accurate as it was 50 years ago, Mr Elkins said Australia's wool industry is still alive and well.

"The wool market has been the best it's been for a long time and there's very positive signs," he said.

"The industry contributes about $5 billion to the economy."

On an average day, Mr Elkins can shear more than 120 sheep, each taking between two to three minutes to complete.

Shearing has also earned the Canberra resident a Guinness World Record, after shearing the heaviest fleece recorded from the now-famous Chris the Sheep in September 2015.

Chris was discovered in Mulligans Flat with an estimated six years' worth of wool. The record-breaking shear saved his life.

"Sheep are usually shorn every 12 months and they cut an average of about five kilograms of fleece," Mr Elkins said.

"Chris obviously took me a lot longer, and he was on the cusp of 41.1 kilograms of fleece."

Stall owner Robert Parker travelled from Melbourne for the event, showcasing a range of woollen clothing.

Mr Parker has been running his business Australian Knitting Mills from factories in Collingwood for more than 50 years and said there has always been large interest from Canberra.

"I've been coming here for 10 years, and the response has been exceedingly good," he said.

Another stall owner showcasing all things woollen was Tom Dennis, whose family have been involved in producing wool for 176 years.

Mr Dennis' great-great-grandfather started the flock in 1840, and said in the time since, the approach to wool manufacturing has changed dramatically.

"In the 1970s we turned to grey and black fibres, and we've just taken over from my parents and we're turning it into more of an education business," he said.

Many of the stalls on display at the markets had family connections stretching back generations, and Mr Dennis said it's a common occurrence for those involved with wool.

"The business model for farmers is to keep going, so they have something pass on to their children," he said.

The Celebration of Wool will be open on Sunday at the markets between 10am and 4pm.