The world-first, named after the Kakapo, is a collaboration between wool engineering company Shear Edge and outdoor adventure retailer Torpedo7.
It uses New Zealand grown wool to replace 2kg of plastic in the hull, the equivalent of 400 plastic bags.
Shear Edge Roto, the fibre used, is a highly engineered natural fibre composite comprising 35 percent strong wool fibres embedded in high-density polyethylene, the company said.
Simon West, Torpedo7 CEO, said the company were "excited" to provide kayakers with an option that is kinder to the environment.
"Whether it's a paddle in the Waitematā Harbour, down the Whanganui River, or in the Marlborough Sounds, New Zealand offers some of the best kayaking spots in the world all year round.
"Our team alongside Shear Edge have been working hard to innovate a kayak that has a reduced environmental impact and doesn't sacrifice on performance.