Agarwood Essential Oil Industry: Increased Demand for Perfumes and Incenses Poised to Favor Global Agarwood Essential Oil Market Expansion

September 2022, Market Research Future has published a Report on the Global Agarwood Essential Oil Market

Market Insights

Agarwood essential oil market size is anticipated to reach USD 345.5 million by 2030, registering a CAGR of 6.35% during 2022-2030.

The application base of agarwood essential oil is expanding fast. The manufacturers are leveraging the rarity of the raw materials for expensively pricing the oil without affecting the demand adversely. Market Research Future (MRFR) has revealed in its recently published report that the agarwood essential oil market will thrive steadily throughout the forecast period 2022 to 2030.

The agarwood, also known as aloeswood, is mostly used for the production of incense and perfumes. Agarwood essential oil is also used by the end user industries for producing soaps, cosmetics, personal care items, therapeutics, etc. The increasing demand for agarwood essential oil as an ingredient in the production process of varied industry verticals will fuel the market growth of agarwood essential oil over the assessment period.

Agarwood essential oil, also, has high medicinal value and is extensively used by Ayurvedic practitioners which is one of the key drivers of agarwood essential oil market growth and expansion. Among all the other species, aquilaria species is the most popular one with a significant contribution towards accelerated revenue generation.

As the raw materials are rare to find, technological advancements have been witnessed to augment the cultivation of agarwood. The plantation of agarwood has been introduced and re-introduced in countries such as Sri Lanka, Malaysia, etc. which will catalyze the revenue created from the global agarwood essential oil market. Techniques have also been implemented to improve stimulation of agarwood production for enhanced quality of the oil produced which will favor the market growth and expansion.

Market Segmentation:

By raw material, the agarwood essential oil market has been segmented into wood, resin, flowers, bark and others and others

By product type, the global agarwood essential oil market is segmented into pure essential oil, compound essential oil, and others

By application, the agarwood essential oil market has been segmented into perfume, cosmetics, and others

Detailed Regional Analysis:

By region, the agarwood essential oil has been segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). Asia Pacific accounts for the largest share of the market size and revenue, and the trend is likely to continue over the assessment period. The region is the highest producer of agarwood owing to the presence of countries such as China, India, and Malaysia which will drive the agarwood essential market oil across the review period.

The widening range of application of agarwood essential oil will proliferate North America market by generating demand. The presence of countries such as Germany which accounts for a significant share in agarwood imports will favor Europe market expansion. Developed countries in North America and Europe are importing agarwood essential oil for use across different industry verticals which will encourage market growth in the regions. The Rest of the World market will exhibit a sluggish growth during the projection period.

Competitive Dashboard:

The key players profiled by MRFR in its latest report for an accurate market forecast include Ji'an Zhongxiang Natural Plants Co., Ltd, Shaanxi Guanjie Technology Co., Ltd., Xi'an Natural Field Bio-Technique Co., Ltd., Dauper SA, Hoang Giang Agarwood Company Limited, Amarnath Exports, and, Maruti Natural Fragrances among others. The top-notch players strengthen their footholds in the market by strategizing initiatives such as scientific methods of cultivation, adoption of technology to enhance quality, product developments, etc.

Industry News:

In February 2021, Thoub Chankrassna Khmer Co (TCK), Cambodian agarwood plantations and an incense company, has partnered with Thai investment firm First Capital Group (FCG), for spending USD 100 Mn in improving the quality of Cambodia’s agarwood trees.