Agarwood Essential Oil Market
Agarwood Essential Oil Market Study by Organic and Conventional for Cosmetics & Personal Care, Incense, Therapeutics, Food & Beverages, and Pharmaceuticals from 2024 to 2034
Analysis of Agarwood Essential Oil Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Agarwood Essential Oil Market Outlook (2024 to 2034)
The global agarwood essential oil market is calculated at a value of US$ 140.9 million for 2024 and is forecasted to climb to US$ 224.6 million by the end of 2034. Global demand for agarwood essential oil is predicted to rise at a steady 4.7% CAGR from 2024 to 2034.
The olfactory splendor of agarwood is known around the world, and agarwood essential oil can easily be termed “liquid gold” in the modern world owing to its rarity and sky-high prices. Agarwood essential oil is also known to the world as one of the most expensive raw materials on the planet.
Agarwood essential oil is also popularly known as Oud oil, which refers to the Arabic name of agarwood. The oil is extracted from the agarwood tree’s heartwood after it becomes infested, and this is what makes it a rare commodity. Agarwood essential oil is extensively used in the making of perfumes and incense products owing to its distinct aromatic properties.
- In 2020, Khalm Skincare, a new skincare company founded in 2017, announced the launch of new skincare products that utilize the qualities of agarwood/Oud essential oils. The range included a foaming cleanser, a mattifying moisturizer, and an overnight oil elixir to provide a complete skincare solution powered by Oud essential oil.
Rising demand for functional ingredients in products is also projected to favor sales of agarwood essential oil through 2034. The increasing preference of consumers for alternative medicine and unorthodox healing practices is also forecasted to contribute to the growing agarwood essential oil market size in all parts of the world.
- Therapeutic applications of agarwood essential oil are projected to account for 21.43% share of the market by 2034.
“Extensive Use of Agarwood Essential Oil in Aromatherapy”
Agarwood essential oil can fight cancer cells, reduce inflammation, calm nerves, and promote healthy sleep. It is also popularly used as an antidepressant in some parts of the world. As agarwood essential oil continues to gain popularity worldwide, its advantages are contributing to its widespread use in aromatherapy. This increased popularity is predicted to have a positive impact on agarwood essential oil sales in the future.
On the flip side, the expensive nature of agarwood essential oil makes it a priority target for makers of counterfeit products. This is why the market is full of counterfeit products, thereby inhibiting global agarwood essential oil market growth.
| Report Attributes | Details |
|---|---|
| Agarwood Essential Oil Market Size (2024E) | US$ 140.9 Million |
| Projected Market Value (2034F) | US$ 224.6 Million |
| Global Market Growth Rate (2024 to 2034) | 4.7% CAGR |
| North America Market Value (2024E) | US$ 27.5 Million |
| East Asia Market Share (2034F) | 26.6% |
| South Korea Market Growth Rate (2024 to 2034) | 6.4% CAGR |
| Japan Market Value (2024E) | US$ 5.6 Million |
| Revenue Share of United States in North American Market (2034F) | 79.4% |
| Organic Agarwood Essential Oil Segment Value (2024E) | US$ 81 Million |
| Key Companies Profiled |
|
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What Makes Europe a Haven for Agarwood Essential Oil Providers?
“Growing Demand for Organic and Clean Label Ingredients in Personal Care Products”
Europe is home to some of the most prominent manufacturers of cosmetics and personal care products in the world. These companies are focusing on the adoption of organic and clean-label ingredients in their products to meet changing consumer demands, which is why agarwood essential oil sales are projected to shine bright in European countries over the coming years.
An increasing number of high net-worth individuals and their willingness to spend extra on premium personal care products with exclusive ingredients such as Oud oil are also predicted to augment demand for agarwood essential oil in Europe through 2034. France, Germany, Spain, and the United Kingdom are forecasted to maintain their reputation as investment-worthy markets for agarwood essential oil vendors in the European region over the next ten years and beyond.
Fact.MR, a market research and competitive intelligence provider, in this latest agarwood essential oil market study report, gives a detailed regional analysis of the industry with factors such as local supply, pricing trends, product standards, safety regulations, and new developments driving market growth.
Country-wise Insights
Apart from investing in the European region, agarwood essential oil vendors can focus on countries such as Japan, India, China, Saudi Arabia, the UAE, the United States, and Malaysia to amplify their business reach on a global scale.
Which East Asian Country Should Agarwood Essential Oil Suppliers Target?
“Agarwood Essential Oil Manufacturers Benefiting from High Demand for Natural Fragrances in China”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 28.4 Million |
| Growth Rate (2024 to 2034) | 4.8% CAGR |
| Projected Value (2034F) | US$ 45.4 Million |
China is projected to account for a 77.1% share of the East Asian market by 2034. Agarwood has a significant place in Chinese culture, as it has been used in religious ceremonies and traditional medicine in the country for several centuries. This cultural association with agarwood makes China a highly remunerative space for all types of agarwood essential oil companies in the future.
Growing disposable income, rising willingness to spend on premium products, high demand for natural fragrances, and the surging popularity of aromatherapy are other key prospects that will uplift the consumption of agarwood essential oil in China over the coming years.
What Makes the United Arab Emirates a Lucrative Market for Agarwood Essential Oil Suppliers?
“Increasing Demand for Oud Fragrance Products from Prominent Fragrance Brands”
Agarwood is known as Oud in Arabic, and it has been popular in the Middle Eastern region for quite a while now. The United Arab Emirates is home to some of the most prominent fragrance brands in the world, and this is what makes it a highly lucrative market for agarwood essential oil companies.
Oud is a preferred fragrance among people living in the Middle East, and brands like Ajmal, Rasasi, Arabian Oud, Swiss Arabian, etc. are extensively focusing on launching new Oud fragrance products to maximize their business, which allows the UAE to become a prominent market on the global agarwood essential oil marketplace.
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Category-wise Insights
Agarwood essential oil manufacturers are focusing on supplying conventional agarwood essential oil for cosmetics and personal care use to make the most of their investments and boost revenue generation.
Which Type of Agarwood Essential Oil is Most Extensively Used?
“High Demand for Conventional Agarwood Essential Oil Due to its High Value and Scarcity”
| Attribute | Conventional |
|---|---|
| Segment Value (2024E) | US$ 91 Million |
| Growth Rate (2024 to 2034) | 4.6% CAGR |
| Projected Value (2034F) | US$ 143 Million |
Agarwood essential oil is an extremely expensive product, and getting its organic version is not commercially viable for many companies that use it in their products, which is why sales of conventional agarwood essential oil take precedence on a global level.
The surging popularity of the Oud scent in perfumes, incense, and personal care products is projected to bolster sales of conventional agarwood essential oil in the long run. Meanwhile, demand for organic agarwood essential oil is projected to rise among consumers as awareness of organic products increases.
Which Industry Accounts for Widespread Use of Agarwood Oil?
"Extensive Use of Agarwood Essential Oil in Cosmetics & Personal Care Products"
| Attribute | Cosmetics & Personal Care |
|---|---|
| Segment Value (2024E) | US$ 63 Million |
| Growth Rate (2024 to 2034) | 4.4% CAGR |
| Projected Value (2034F) | US$ 97 Million |
Consumer awareness regarding the benefits of functional ingredients is increasing around the world, which is pushing cosmetics and personal care product manufacturers to incorporate ingredients such as bergamot oil, citrus essential oil, peppermint oil, and agarwood essential oil.
Agarwood essential oil also has several benefits for skin and hair, which is why its use is projected to skyrocket in the personal care and cosmetics industry. The growing willingness of consumers to spend on premium personal care products is also a factor that is promoting agarwood essential oil sales in this segment.
Competitive Landscape
Agarwood essential oil distributors are projected to benefit from the growing use of functional ingredients in the formulation of various personal care and cosmetic products.
In September 2023, Kayali Perfumes, a fragrance brand launched in 2018 by Mona Kattan, co-founder of HUDA BEAUTY, announced the launch of a new line of Oud perfumes. The range contains four fragrances ranging from light to intense scents to give consumers a rich fragrant experience.
Know thy Competitors
Competitive landscape highlights only certain players
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Key Segments of Agarwood Essential Oil Market Research
-
By Nature :
- Organic
- Conventional
-
By Application :
- Cosmetics & Personal Care
- Incense
- Therapeutics
- Food & Beverages
- Pharmaceuticals
- Others
-
By Distribution Channel :
- Business-to-Business
- Business-to-Consumer
- Specialty Drug Stores
- Supermarkets/Hypermarkets
- e-Commerce
- Convenience Stores
-
By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
How big is the agarwood essential oil market expected to be in 2024?
The global agarwood essential oil market is estimated at US$ 140.9 million in 2024.
What are the projected sales for agarwood essential oil by 2034?
Sales of agarwood essential oil are forecasted to reach US$ 224.6 million by 2034-end.
What is the demand outlook for agarwood essential oil across the world?
Demand for agarwood essential oil is foreseen to increase at 4.7% CAGR over the next 10 years.
What is the demand growth projection for agarwood essential oil in Japan?
Agarwood essential oil demand in Japan is forecasted to rise at 5.3% CAGR from 2024 to 2034.
What share of the global market does East Asia occupy?
East Asia is estimated to account for 25.7% share of the global market in 2024.
Who are the top agarwood essential oil distributors?
Biofinest USA, SVA Naturals, Dauper S.A., Aromaaz International, Nusaroma, and BIOLANDES SAS are leading agarwood oil producers.
Agarwood Essential Oil Market