Global Market | Fair Agarwood Market | Market Access | Agarwood Trade | Policy Recommendations
The global agarwood market is experiencing significant growth, driven by rising demand in the fragrance, wellness, and luxury sectors.
Global Market Overview
- Agarwood Chips: Valued at approximately USD 41.05 billion in 2024, the market is projected to reach USD 67.45 billion by 2031, growing at a CAGR of 7.4%.
- Agarwood Essential Oil: The market is expected to grow from USD 251 million in 2024 to USD 342.71 million by 2032, with a CAGR of 3.97%.
Growth Drivers
- Fragrance Industry Demand: Agarwood’s unique scent makes it a prized ingredient in high-end perfumes and incense, especially in the Middle East and Asia.
- Wellness and Traditional Medicine: Its use in aromatherapy and traditional remedies contributes to its growing popularity.
- Luxury Market Expansion: Increasing disposable incomes and a preference for natural products are boosting demand for agarwood-based items.
Regional Insights
- Asia-Pacific: Dominates production and consumption, with countries like India, Vietnam, and Thailand leading the market.
- Middle East: High demand for agarwood in perfumes and incense, particularly in the UAE and Saudi Arabia.
- North America and Europe: Growing interest in natural fragrances and wellness products is expanding the market in these regions.
Challenges
- Sustainability Concerns: A significant portion of agarwood is sourced from wild, endangered trees, raising environmental and regulatory issues.
- Regulatory Compliance: Trade is subject to international regulations, including CITES, requiring careful adherence to export and import laws.