Global Agarwood Essential Oil Market (2025-2031) | Supply, Segments, Demand, Consumer Insights, Strategic Insights, Competition, Analysis, Strategy, Pricing Analysis, Competitive, Revenue, Trends, Restraints, Investment Trends, Opportunities, Share, Value, Size, Challenges, Growth, Drivers, Segmentation, Industry, Outlook, Forecast, Companies

Global Agarwood Essential Oil Market Size & Growth Rate

According to industry insights, the Global Agarwood Essential Oil Market is projected to grow at a CAGR of 6.5% from 2025-2031. The market was valued at USD 1.2 billion in 2024 and is expected to reach USD 1.9 billion by 2031.

Global Agarwood Essential Oil Market Highlights

Topics Covered in the Global Agarwood Essential Oil Market Report

The Global Agarwood Essential Oil Market report comprehensively covers the market by regions, types, and applications. It provides an unbiased and insightful analysis of current market trends, growth opportunities, challenges, and key drivers. This report serves as a valuable resource for stakeholders to align their strategies with evolving market dynamics.

Global Agarwood Essential Oil Market Synopsis

The market is expanding steadily worldwide due to the rising demand for agarwood essential oil in applications such as pharmaceuticals, aromatherapy, and high-end personal care products. Agarwood oil, which comes from Aquilaria trees, is highly valued for its unique aroma and therapeutic properties. The market is being driven by an increasing consumer interest in wellness products and luxury fragrances, as well as their cultural significance in regions such as Asia and the Middle East. However, challenges such as high manufacturing costs, sustainability concerns, and regulations imposed by CITES may hinder market access. Despite these challenges, developments in the effectiveness of artificial inoculation as well as sustainable agricultural practices are expected to drive future growth in the sector. The market has strong potential for growth due to its various applications and the steadily increasing global awareness of it.

The Global Agarwood Essential Oil Market size is expected to grow at a significant CAGR of 6.5% during the forecast period 2025–2031. In recognition of its utilisation in wealth perfumes and aromatherapy, agarwood oil is a highly sought-after commodity. Another factor sustaining its demand is the rising awareness of its health advantages, such as lowering stress and promoting relaxation. The cultural and spiritual nature of agarwood in places like the Middle East and Asia likewise impacts market expansion. Improvements in sustainable farming methods also contribute to the Global Agarwood Essential Oil Market Growth by maintaining a consistent supply of raw materials. These elements work together to support the market's expansion during the forecast period.

Challenges Faced by the Market

The high cost of production and the scarcity of raw materials are two of the issues facing the global agarwood essential oil market. Because of the deforestation caused by overharvesting of Aquilaria trees, sustainable cultivation is a major concern. Regulatory restrictions under CITES further complicate the supply chain, impacting market growth. Moreover, the Global Agarwood Essential Oil Industry struggles with the lack of awareness about sustainable practices among small-scale producers. All of this can be resolved by maintaining a balance between preserving the environment and satisfying the growing demand for agarwood oil. Despite these challenges, the market has avenues to grow if creative and sustainable solutions are implemented.

Global Agarwood Essential Oil Market Trends

The Global Agarwood Essential Oil Market is witnessing a change towards sustainable and innovative practices. Businesses are investing on artificial inoculation methods to produce agarwood in an ethical manner and lessen its impact on the environment. Efficiency and traceability are improved in supply chain management using digital platforms and artificial intelligence. Another trend is the rising consumer preference for personalized luxury products, driving demand for unique agarwood oil blends. Businesses are also focussing on creating seamless shopping experiences by connecting physical stores and online platforms through omnichannel strategies. These trends show how the market is changing towards customer-centric and sustainable strategies.

Investment Opportunities in the Global Agarwood Essential Oil Market

Global agarwood essential oils market offers huge investment opportunities in e-commerce, alongside and input into sustainable agricultural practices. The proliferation of digital commerce platforms enables business entities to leverage their agarwood oil sales, thereby facilitating access to the global market. Investments in logistics and supply chain infrastructure can increase productivity and reduce costs as well. New developments in sustainable packaging for agarwood from oil generation represents a growth opportunity as well. Upgrading retail infrastructure, such as luxury boutiques and wellness centres, can further enhance the market appeal. Investors focusing on sustainability and innovation will benefit from the market's growth trajectory.

Leading Players in the Global Agarwood Essential Oil Market

Prominent companies in the Global Agarwood Essential Oil Market Share include Ensar Oud, Agar Aura, Oud Essentials, Asia Plantation Capital, and Imperial Oud. These businesses are well-known for their proficiency in producing high-quality oil and cultivating agarwood sustainably. Ensar Oud and Agar Aura specialize in luxury fragrances, while Asia Plantation Capital focuses on sustainable plantation practices. Imperial Oud is recognized for its innovative product offerings and global reach. These major players dedication to sustainability and quality makes a substantial contribution to the market's expansion.

Government Regulations Introduced in the Global Agarwood Essential Oil Market

The United Nations Convention on International Trade in endangered animals (CITES) governs the global agarwood essential oil market, ensuring the sustainable trade of agarwood. Regulatory authorities in producing countries like Vietnam and India have established policies aimed at supporting artificial inoculation methods and sustainable agriculture. Vietnam's National Agarwood Development Program aims to enhance the agarwood industry through scientific and technology activities, while balancing market development with environmental preservation, to support the sustainability of the agarwood industry.

Future Insights of the Global Agarwood Essential Oil Market

The global agarwood essential oil market is anticipated to grow significantly due to advancements in sustainable cultivation and growing consumer demand for luxury and wellness products. A steady supply of raw materials will be ensured and sustainability concerns will be addressed using artificial inoculation techniques. Recent innovations that will propel market appeal include customised fragrances and eco-friendly packaging. However, provides with high production costs and regulatory compliance need to be resolved. In the foreseen future, the customer base for agarwood essential oil is anticipated to expand and diversify considerably, promoting sustainability and innovation.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Organic to Dominate the Market - By Type

According to Guneet Kaur, Senior Research Analyst, 6Wresearch, the organic type is the fastest-growing segment due to increasing consumer preference for natural and chemical-free products, driven by rising awareness of health benefits and sustainable practices in essential oil production.

Aromatherapy to Dominate the Market - By Application

The aromatherapy segment is witnessing rapid growth as consumers increasingly adopt essential oils for stress relief, relaxation, and holistic wellness. The growing popularity of alternative therapies and spa treatments further fuels demand for agarwood essential oil in this application.

Asia to Dominate the Market - By Region

Asia is the fastest-growing region due to the abundance of agarwood plantations, traditional usage in cultural practices, and increasing demand for essential oils in personal care and aromatherapy, supported by a growing middle-class population and disposable income.

Key Attractiveness of the Report

• 10 Years of Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year 2024
• Forecast Data until 2031.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

 

Key Highlights of the Report:

• Global Agarwood Essential Oil Market Outlook
• Market Size of Global Agarwood Essential Oil Market, 2024
• Forecast of Global Agarwood Essential Oil Market, 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Revenues & Volume for the Period 2021 - 2031
• Global Agarwood Essential Oil Market Trend Evolution
• Global Agarwood Essential Oil Market Drivers and Challenges
• Global Agarwood Essential Oil Price Trends
• Global Agarwood Essential Oil Porter's Five Forces
• Global Agarwood Essential Oil Industry Life Cycle
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Global Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of North America Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of United States of America Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Canada Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of North America Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Latin America (LATAM) Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of Brazil Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Mexico Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Argentina Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of LATAM Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Asia Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of China Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of India Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Japan Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Asia Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Africa Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of South Africa Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Nigeria Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Egypt Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Africa Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Europe Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of France Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Germany Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Type for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Conventional for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Organic for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Application for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Personal Care for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Aromatherapy for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Pharmaceuticals for the Period 2021 - 2031
• Historical Data and Forecast of Middle East Agarwood Essential Oil Market Revenues & Volume By Air Care for the Period 2021 - 2031
• Historical Data and Forecast of Saudi Arabia Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of UAE Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Turkey Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Middle East Agarwood Essential Oil Market Revenues & Volume for the Period 2021 - 2031
• Global Agarwood Essential Oil Market - Key Performance Indicators
• Global Agarwood Essential Oil Market - Import Export Trade Statistics
• Global Agarwood Essential Oil Market - Opportunity Assessment By Countries
• Global Agarwood Essential Oil Market - Opportunity Assessment By Type
• Global Agarwood Essential Oil Market - Opportunity Assessment By Application
• Global Agarwood Essential Oil Market - Top Companies Market Share
• Global Agarwood Essential Oil Market - Top Companies Profiles
• Global Agarwood Essential Oil Market - Comparison of Players in Technical and Operating Parameters
• Global Agarwood Essential Oil Market - Strategic Recommendations

Markets Covered

The report offers a comprehensive study of the subsequent market segments

By Regions and Countries

• North America
• Europe
• LATAM
• Middle East
• Asia
• Africa

By Type

• Conventional
• Organic

By Application

• Personal Care
• Aromatherapy
• Pharmaceuticals
• Air Care