Agarwood Chips Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2032 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

The global agarwood chips market is projected to witness remarkable expansion in the coming years, with the market size expected to grow from US$ 44.1 billion in 2025 to US$ 75.6 billion by 2032. This represents a compound annual growth rate (CAGR) of 8.00% during the forecast period, driven by the rising global demand for premium, natural, and culturally significant aromatic products.

Market Insights

Agarwood, also known as oud or aloeswood, is derived from Aquilaria trees and is among the most valuable and rare woods in the world. Agarwood chips are increasingly used across industries, particularly in perfumery, aromatherapy, traditional medicine, and cultural rituals. Their deep, rich scent and therapeutic properties make them a preferred choice for consumers seeking luxury and wellness in natural forms.

Growing environmental awareness is shaping the way agarwood is harvested, with innovations in inoculation and cultivation techniques enabling sustainable production without harming the trees.

Market Drivers

Several key factors are propelling the growth of the agarwood chips market:
• Rising Demand from the Fragrance Sector: Agarwood is a premium ingredient in high-end perfumes. Luxury brands are incorporating sustainably sourced agarwood into their collections, catering to the growing demand for natural scents.
• Cultural and Religious Significance: In countries like the UAE and across the Middle East, agarwood chips are integral to spiritual and social customs, supporting sustained and consistent demand.
• Expansion of Wellness and Aromatherapy Markets: Agarwood’s calming properties have made it popular in wellness circles, where it is used in incense, oils, and therapeutic blends.
• Consumer Preference for Traditional and Natural Products: As awareness around synthetic fragrances and sustainability grows, customers are turning toward authentic, naturally derived products like agarwood chips.

Opportunities for Growth

The increasing cultural acceptance and religious significance of agarwood across Asia, the Middle East, and emerging global markets present substantial growth opportunities. As agarwood continues to be integrated into wellness and medicinal applications, its appeal is expanding across new consumer demographics.

Companies investing in ethical sourcing, research and development, and eco-conscious production practices are well-positioned to capitalize on this growing demand.

Regional Outlook

North America is emerging as a strong growth region due to rising interest in niche, luxury fragrances and a growing consumer base for wellness and aromatherapy. The U.S. alone is anticipated to contribute significantly to regional revenues, supported by online retail expansion and consumer awareness.

Meanwhile, the Middle East remains a core demand hub due to its deep-rooted cultural usage of agarwood in personal rituals, social ceremonies, and luxury fragrance formulations. The UAE, in particular, has become a global stage for fragrance exhibitions that spotlight agarwood-based products.

Competitive Analysis

The agarwood chips market is highly competitive, with a mix of established brands and regional producers. Key players are focusing on sustainable sourcing, premium product quality, and strategic collaborations. Leading market participants include:
• Gaharu International
• Oud & Co.
• Al Haramain Perfumes
• Ajmal Perfumes
• Grandawood Agarwood Australia
• Binh Nghia Agarwood Co., Ltd
• Hoang Giang Agarwood Ltd.
• Thai Borai Agarwood Co., Ltd
• Sadaharitha Plantations Limited

Recent developments include new product launches and partnerships aimed at blending traditional oud aromas with modern fragrance preferences. For example, in early 2023, Oud & Co. partnered with a global fragrance house to co-develop a new range of luxury agarwood-based perfumes.

Market Segmentation

By Nature
• Conventional
• Organic

By End Use
• Incense Sticks
• Fragrances
• Retail/Household
• Specialty Clinics

By Distribution Channel
• Business to Business (B2B)
• Business to Consumer (B2C)

By Region
• North America
• Latin America
• Europe
• South Asia & Oceania
• East Asia
• Middle East & Africa

Please note: Delivery Timelines - 5 working days. Show more