Rather than buying fabric for your scrunchies, I actually create my own. Each scrunchie starts it's life as wool on a cone. This yarn is 100% lambswool and 100% super soft.
I then knit up the yarn on my vintage domestic knitting machine to create a loose thin knitted fabric. This fabric then gets washed, and this is where the magic happens. During the washing process the wool fibers rub together and become agitated, causing them to matt together and form a thick felted fabric.
Only at this point can I start making the actual scrunchies. I cut and sew them into shape, add the elastic and then hand sew the two ends together creating a seamless loop.