Agarwood is an endangered species, protected by Convention on international Trade in Endangered Species of Wild Fauna and Flora. Agarwood is traded in various forms including chips, oil, logs, and dust. Agarwood chips is the largest form of agarwood traded across the globe. Agarwood chips are used in the manufacturing of incense, perfumes, traditional medicines, and agarwood oil. Agarwood cultivation is banned in Myanmar, Bhutan, and many other countries. Oil production from agarwood chips increased in last 2 decades with rising use of agarwood oil in the production of medicine and perfume for its distinct fragrance is driving the market growth.
Global agarwood chip market was valued at USD 8,303.7 million in 2018, growing at a CAGR of 6.4% during the forecast period of 2019–2026.
By application, the market is segmented into oil production, incense & fragrance and others. Oil extraction is accounting for the major market share. Currently, agarwood oil is witnessing high demand in the international perfumery, incense, cosmetics, and medicine market. This has compelled the players to increase their overall production of agarwood chips to meet the growing demand from different sectors. Oil production from agarwood chips increased in last 2 decades with rising use of agarwood oil in the production of medicine and perfume for its distinct fragrance.
North America is dominating the market and accounted for the highest share in the forecast period. From the past few years, North America has been witnessing increasing demand for agarwood chips for high-value perfumes and incense prepared from agarwood. Fragrance industry in North America is well flourished and growing at an exponential rate by welcoming new niche, natural, and exquisite fragrances such as agarwood. Rise of niche brands and trend of personalized fragrances are collectively penetrating the North America fragrance market, backed by changes in the consumer preferences and increasing demand for natural perfumes. North America fragrance industry accounts for 34% of the global fragrance industry, which earned about USD 23,800.5 million in 2018 and is likely to grow further due to the newly indulging trend of personalized fragrances.
Europe is second leading region in the forecast period. Despite the decline in volume sales during 2015–2016, Europe fragrance industry experienced value growth of about 1% in 2016 as compared to 2015. Europe fragrance market was worth USD 21,349.8 million in 2018, by grossing about 30% share of the global fragrance industry. This makes it a potential market for import of raw materials including agarwood chips for premium perfume manufacturing. Countries in Western Europe, including Germany, the U.K, France, Belgium, Spain, Italy, Ireland, and many others are among the largest consumers for premium perfumes and fragrances. Natural and raw fragrances such as agarwood are being imported in Europe in high amount for use in medicine, incense, and perfumes, which is likely to cater to the growth of the overall agarwood chip market.
Some of the prominent players in the market are Hoang Giang Agarwood Ltd, Lao Agar International Development, Asia Plantation Capital Pte Ltd, K.A.B. Industries, Arista, Agarvina Co. Ltd, Green Agro, Sadaharitha Plantations Limited, ASSAM AROMAS, BINH NGHIA AGARWOOD CO., LTD, Myanmar Treasure Co-op., Ltd, Sai Export India, THE MJI GROUP, NHANG THIEN JOINT STOCK COMPANY, Homegrown Concept Sdn Bhd.