Agarwood Oil Market Share, Size, Trends, Industry Analysis Report, By Nature (Organic and Conventional); By Application; By Distribution Channel; By Region; Segment Forecast, 2023 – 2032
- Published Date:Jul-2023
- Pages: 114
- Format: PDF
- Report ID: PM3654
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global agarwood oil market was valued at USD 237.13 million in 2022 and is expected to grow at a CAGR of 6.2% during the forecast period.
The significant emergence of aromatherapy worldwide as an effective alternative to several medical practices, which helps in boosting energy levels, promotes sleep, improves digestion and circulation, and accelerates healing along with the ability of this oil to treat a range of medical issues like asthma, are key primary factors driving the demand and growth of the global market.
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In addition, the growing product proliferation among Ayurveda practitioners because of its various emotional and spiritual benefits and growing knowledge of its anti-inflammatory, anti-rheumatic, and analgesic properties has pushed the market's growth forward.
- For instance, in March 2022, Ajmal Perfumes announced the launch of its new fragrance named AI Oudh Qadeem Eau de Parfum. The new perfume range is one of the finest oriental fragrances and will be available for consumers in sprat form. The fragrance has developed with the help of extract from Indian agarwood trees & Hindi Oud, which makes it a long-lasting fragrance.
Moreover, major agarwood oil manufacturers are exploring its potential applications beyond traditional uses into a variety of different product categories such as luxury personal care items, natural skincare formulations, premium candles, home fragrances, and even culinary products, which will help the companies to gain a competitive edge and create lucrative revenue opportunities in the forecast period.
The outbreak of the COVID-19 pandemic has significantly impacted the growth of the agarwood oil market. The rapid spread of the deadly coronavirus across the globe forced countries to take necessary actions like lockdowns and restrictions on mass movement, which resulted in the temporary closure of manufacturing and processing facilities and huge disruptions in the global supply chain and transportation of raw materials.
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Growth Drivers
Increasing prevalence and popularity of agarwood oil
The growing prevalence and popularity of agarwood oil as a luxury and niche product due to its rarity, unique fragrance, high price, and increasing consumer desire for luxury and unforgettable experiences that can be availed through agarwood oil are among the major factors propelling the market. Consumers across the globe are increasingly seeking natural and plant-based alternatives in their personal care, beauty, and fragrance products, resulting in significant demand for agarwood oil over the years.
Furthermore, the growing focus of major research & development institutes towards exploring the various phenomenal medicinal properties of agarwood oil like providing physical and emotional relief for insomnia, stress, burns, skin problems, migraine, infections, and nervous tension, among others, and rising investments to improve or enhance the characteristics of existing products of the market, are also likely to have a positive impact on the market growth in the forecast period.
Report Segmentation
The market is primarily segmented based on nature, application, distribution channel, and region.
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By Nature |
By Application |
By Distribution Channel |
By Region |
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By Nature
Organic segment is expected to witness highest growth during forecast period
The organic segment is projected to grow at the highest growth rate during the anticipated period, which is mainly driven by its significant use in a wide range of applications like cosmetics, personal care, therapeutics, medication, household cleaning, and cosmetics, among others, along with the rising prevalence regarding the use of agarwood oil in aromatherapy and traditional medicine. Organic oils are often known for their higher quality and purity due to their natural sourcing and absence of synthetic chemicals, which led to a willingness among consumers to pay a premium for organic variants, thereby propelling the segment market.
The conventional segment led the industry market with a substantial share in 2022, mainly due to its rich, complex, and unique fragrance and emergence as a luxury ingredient used in a large range of premium perfumes, luxury cosmetics, and high-quality skincare products coupled with the rapid growth in the international trade of conventional agarwood oil to meet the rising demand all over the world.
By Application
Cosmetics & personal care segment accounted for the largest market share in 2022
The cosmetics & personal care segment accounted for the largest market share in 2022. The growth of the segment market can be mainly attributed to the continuous expansion of the cosmetics & personal care industry, as consumers across the globe are becoming more conscious about their skin and health and are willing to spend higher on premium quality products. In addition, with the growing awareness regarding the product's advantages for skin and hair treatment, the demand for agarwood oils has expanded drastically in recent years.
Moreover, as the aromatherapy and fragrance industries continue to expand around the world, there is a rising demand for unique and exotic fragrances that results in a higher need and adoption of agarwood oil in personal care and cosmetic products along with the widespread use in perfumes, colognes, and other fragrance products due to its rich and long-lasting scent, has been propelling the market.
By Distribution Channel
E-Commerce segment is expected to hold significant market share during forecast period
The e-commerce segment is projected to hold significant market share in terms of revenue over the next coming years on account of convenience & ease of shopping, increased product visibility, competitive prices & discounts, and global reach & accessibility along with several other advantageous characteristics like convenient payment methods and free home delivery.
In addition, the growing prevalence among major companies operating in the market towards establishing their strong online presence to expand their market reach and product visibility and the increased number of people shopping through online channels across both developed & developing economies is driving the market growth at an exponential pace.
Regional Insights
Asia Pacific region dominated the global market in 2022
The Asia Pacific region dominated the global market with considerable market share in 2022 and is projected to continue its dominance throughout the forecast period, mainly attributable to the presence of major producer countries of agarwood oil like India, Sri Lanka, Indonesia, and Malaysia, and significant expansion in demand for cosmetic & personal care products especially among the population.
Furthermore, the regional governments have recognized the economic potential of the agarwood industry and have implemented several favorable initiatives to promote its cultivation, sustainable harvesting, and value-added processing, which has positively influenced the market.
The North America region is projected to be the fastest growing region with a healthy growth rate over the study period, owing to the growing emphasis on sustainability and ethical sourcing practices and the increasing popularity of agarwood oil due to its potential health benefits, including its use in stress relief, meditation, and spiritual practices across the region.
Key Market Players & Competitive Insights
The Agarwood Oil market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Agarvina
- Albert Vielle SAS
- Asia Plantation Capital
- ASSAM Aromas
- Biofinest USA
- Dauper.
- Deve Herbs
- Eden’s Garden
- Essential Oil Wizardry
- Gritman Essential Oils
- Hoang Giang Agarwood
- HYSSES.
- Imperial Oud Company
- Ji’an Zhongxiang Natural Plants
- Katyani Exports
- The MJI Group
- Tien Phuoc
- WEFIVE Group
Recent Developments
- In July 2021, Acqua Di Pharma announced the launch of its new range of fragrances, oud & spice, made up of agarwood oil, patchouli, and cistus labdanum. The range of products was mainly formulated with a rare agarwood extract sourced from the Aquilaria trees and is available in 20 ml, 180 ml, & 200 ml formats.
- In December 2022, Soma Ayurvedic introduced new perfume oils that smell like jasmine and contain a base of almond, grapeseed, & jojoba oils, that avoid irritating sensitive skin. The company is highly focused on introducing several new facets of Indian perfume-making with floral, spicy, gourmand, & fruit-forward in the coming months.
Agarwood Oil Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 250.08 million |
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Revenue forecast in 2032 |
USD 430.07 million |
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CAGR |
6.2% from 2023 – 2032 |
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Base year |
2022 |
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Historical data |
2019 – 2021 |
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Forecast period |
2023 – 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments covered |
By Nature, By Application, By Distribution Channel, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The global agarwood oil market size is expected to reach USD 430.07 million by 2032.
Key players in the agarwood oil market are Agarvina, Albert Vielle SAS, Asia Plantation Capital, ASSAM Aromas, Biofinest USA,Dauper.
Asia Pacific contribute notably towards the global agarwood oil market.
The global agarwood oil market is expected to grow at a CAGR of 6.2% during the forecast period.
The agarwood oil market report covering key segments are nature, application, distribution channel, and region.
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