Agarwood Chip Market was Valued at USD 8,303.7 million in 2018, at a CAGR of 6.4%

Introduction

Agarwood oil is highly used in the manufacturing of Unani, Ayurveda, Sufi, Traditional Chinese, and Tibetan medicines for treating anemia, impotence, neuro-muscular conditions, halitosis, pleurisy, bed wetting, urinary infections, skin problems, indigestion, blood impurities, pain, and heart problems. In countries including Malaysia, Pakistan, and the Middle East, incense made from agarwood chips is used in bathrooms as a customary perfume. This is expected to drive the growth of the incense and fragrance segment during the forecast period. Moreover, it’s growing applications in other sectors, further driving the growth of the market. For instance, use of agarwood chips in cosmetics was introduced in Malaysia for the treatment of sickness and problems occurring after childbirth; use of agarwood cosmetics has increased significantly in the last few years, ultimately fuelling the overall agarwood chip market.

Direct channel is dominating the market, at a CAGR of 6.6%.

Distribution channel is divided into direct channel and indirect channel. It is expected to dominate the market, owing to established export scenario to the agarwood oil manufacturing companies. Manufacturers in the global agarwood chip market are opting for direct sales channel for selling the products as it needs less investment and workforce. In addition, most of the major manufacturers have collaborated with oil refineries in the Asia Pacific to gain higher market share.

Presence of a large network of agarwood manufacturers is driving the growth of the market in Asia Pacific

In Asia Pacific, agarwood chips are being widely used in traditional medicine and therapeutic perfumes. It is more commonly used as a pain reliever, digestive aid, natural sedative, and carminative in traditional Chinese medicine. Increasing adoption of Ayurvedic and traditional Chinese medicine (TCM) across the globe has influenced the production and export of Ayurvedic & herbal medicines and TCM. This scenario has increased the demand for agarwood chips in Asia Pacific. In the last few years, Agarwood oil refineries in India have grown exponentially in number, especially in Assam, where more than 10,000 distillation units are functional to meet the spurring demand for agarwood chips for oil extraction. Additionally, it is witnessing increasing use of agarwood oil in production of attar (traditional perfume) and premium fragrances.

Competitive Players

1. Hoang Giang Agarwood Ltd
2. Lao Agar International Development
3. Asia Plantation Capital Pte Ltd.
4. K.A.B. Industries
5. Arista Agarvina Co. Ltd.
6. Green Agro Sadaharitha Plantations Limited
7. ASSAM AROMAS
8. BINH NGHIA AGARWOOD CO. Ltd.
9. Myanmar Treasure Co op. Ltd.
10. Sai Export India
11. THE MJI GROUP
12. NHANG THIEN JOINT STOCK COMPANY
13. Homegrown Concept Sdn Bhd.

Recent Developments

February 2024 - The Tripura Forest Department is preparing to open a comprehensive Agar market in North Tripura's Kadamtala district. An official statement stated that the goal of this initiative is to support the agar-based industry in the northeastern state.

December 2023 - According to Kumar Dharmasena, Chairman of Pintanna Plantations in Ayagama, Ratnapura, the value of an agarwood (Wallapatta) tree in Sri Lanka will rise to more than Rs. 1 million by 2028 with carefully considered product diversification. He also pledged to use cutting-edge technology to turn Ayagama into the epicenter of agarwood cultivation in Sri Lanka and to turn the final product into perfumes.

Segmentation

1. By Applications
   1. Oil Production
   2. Incense and Fragrance
   3. Others
2. By Distribution Channel
   1. Direct Channel 
   2. Indirect Channels