Agarwood Oil Market Size, Share, Growth, and Industry Analysis, By Types (Organic, Conventional) , Applications (Food & Beverages Industry, Cosmetics Industry, Pharmaceutical Industry, Chemical Industry, Personal Care Products Industry, Others) and Regional Insights and Forecast to 2033

Agarwood Oil Market Size

The Global Agarwood Oil Market size was USD 323.81 million in 2024 and is projected to reach USD 341.53 million in 2025, ultimately growing to USD 522.95 million by 2033, exhibiting a CAGR of 5.47% during the forecast period from 2025 to 2033. Market expansion is strongly supported by rising demand in cosmetics, personal care, aromatherapy, and pharmaceuticals. With over 42% of global demand driven by personal care and wellness, and 31% coming from the cosmetics industry, the market is increasingly defined by preferences for natural and therapeutic ingredients. Asia-Pacific leads the supply chain, contributing more than 62% of global production and nearly 55% of consumption.

The U.S. Agarwood Oil Market continues to grow steadily with a strong foothold in wellness and fragrance segments. Over 47% of North American luxury brands now use agarwood oil in aromatherapy and self-care products. Nearly 33% of natural cosmetics in the U.S. include agarwood oil in skincare and grooming lines. Direct-to-consumer channels contribute 28% of retail activity in this region, while spa and holistic wellness centers contribute to more than 21% of usage, showing widespread applications across industries. Consumer preference for botanical and ethically sourced oils also drives 26% of new product launches in the U.S. market.

Key Findings

• Market Size: Valued at $323.81M in 2024, projected to touch $341.53M in 2025 to $522.95M by 2033 at a CAGR of 5.47%.
• Growth Drivers: Over 58% of luxury fragrance brands and 41% of wellness brands adopt agarwood oil for product diversification.
• Trends: 43% rise in clean-label products and 35% increase in halal-certified cosmetics using agarwood oil base ingredients.
• Key Players: Asia Plantation Capital, Hoang Giang Agarwood, Eden’s Garden, BIOLANDES SAS, The Imperial Oud Co. & more.
• Regional Insights: Asia-Pacific holds 62% market share driven by large-scale cultivation and traditional use, followed by North America with 16%, Europe with 12%, and Middle East & Africa contributing 10% through religious and luxury fragrance applications.
• Challenges: Over 68% of wild agarwood trees are endangered; 39% market faces adulteration and quality standard issues.
• Industry Impact: Over 36% of new businesses rely on e-commerce while 44% of consumers demand traceable and sustainable sources.
• Recent Developments: 27% increase in aromatherapy launches; 23% growth in agarwood-infused skincare and 37% upgrade in lab quality checks.

The Agarwood Oil market is distinguished by its rarity and therapeutic benefits, making it highly valued in cosmetics, perfumery, and wellness applications. With rising environmental consciousness, over 51% of global consumers prefer sustainably sourced agarwood oil. Organic and halal-certified segments account for over 34% of new product launches. Industrial demand continues to grow in Europe and North America, while Southeast Asia remains the largest producer. As synthetic fragrance fatigue rises, the shift to authentic botanical oils like agarwood is expected to further expand its share in personal care and pharmaceutical formulations worldwide.

Agarwood Oil Market Trends

The Agarwood Oil market is experiencing substantial growth due to increasing consumer preference for natural, premium, and exotic fragrances. Over 52% of fragrance manufacturers are incorporating agarwood oil into their high-end product lines, while approximately 37% of luxury perfume brands now rely on agarwood oil as a key base note ingredient. The personal care and cosmetics sector has also embraced agarwood oil, with nearly 41% of skincare brands introducing agarwood-infused products to tap into consumer demand for wellness-oriented formulations. Demand from the aromatherapy industry contributes to nearly 29% of total usage, driven by its calming and therapeutic properties.

Furthermore, the rise in Ayurvedic and traditional medicinal applications has driven usage in the healthcare sector, which accounts for more than 22% of the global market share. Southeast Asia continues to dominate production with over 64% of the market supply sourced from countries like India, Thailand, and Vietnam. In contrast, North America and Europe together represent 31% of the consumption share, driven by growing awareness of natural ingredients. Meanwhile, halal-certified cosmetic brands using agarwood oil have surged by 18%, reflecting increasing demand in Islamic countries. The online retail segment has also grown rapidly, accounting for 24% of agarwood oil sales, driven by direct-to-consumer brands and niche perfumeries expanding their digital footprint.

Agarwood Oil Market Dynamics

DRIVERS

Surging demand in the luxury fragrance sector

Over 58% of high-end perfume manufacturers are incorporating agarwood oil due to its rich aroma and natural origin. Consumer preference for exotic and premium fragrance notes has grown by more than 43%, and nearly 35% of niche perfumers report increased sales after launching agarwood-based product lines. The adoption of agarwood oil in celebrity-endorsed and designer fragrances has also seen a 27% uptick, fueling continued growth in this segment.

OPPORTUNITY

Expansion into wellness and therapeutic applications

With over 39% of wellness brands integrating agarwood oil into aromatherapy and massage oils, the health and relaxation segment is expanding rapidly. The demand for natural anxiety-relief and stress-reducing oils has surged by 46%, while more than 31% of consumers are actively seeking botanical alternatives in wellness routines. Spa and wellness centers using agarwood oil in treatments have increased by 22%, highlighting untapped growth potential in this segment.

RESTRAINTS

"Limited availability of raw agarwood resources"

The Agarwood Oil market faces a significant restraint due to the scarcity of naturally occurring agarwood trees, with over 68% of wild agarwood-producing species now listed as threatened or endangered. Only about 32% of global demand can currently be met through natural harvesting, leading to increased reliance on cultivated sources. Furthermore, more than 47% of small-scale producers face difficulties in sourcing sustainable agarwood, which affects consistency in supply chains. Regulatory restrictions around wild agarwood harvesting also limit availability, especially in key producing countries. This resource scarcity affects pricing and slows down market expansion across emerging regions.

CHALLENGE

"Rising costs and lack of standardized quality control"

Over 54% of agarwood oil producers report significant challenges due to fluctuating production costs and lack of quality standardization. The market suffers from inconsistency in oil grading, with nearly 39% of global buyers citing difficulty in distinguishing between high and low-quality variants. Additionally, about 31% of international traders express concerns regarding adulteration and lack of certification transparency. The absence of universally accepted grading systems impacts nearly 26% of product exports, especially in regulated cosmetic and pharmaceutical industries. These quality assurance gaps hinder wider commercial adoption despite increasing global demand.

Segmentation Analysis

The Agarwood Oil market is segmented based on type and application, with key growth drivers varying across categories. In terms of type, both organic and conventional agarwood oils are witnessing demand based on target consumer groups. Organic variants are preferred in premium and wellness product lines, while conventional types dominate bulk usage in traditional fragrance and industrial formulations. By application, agarwood oil is gaining traction in cosmetics, pharmaceuticals, and personal care, driven by its aromatic and therapeutic benefits. With over 42% of the demand fueled by personal care and cosmetics applications, the segmentation highlights a diversified usage pattern across industries.

By Type

• Organic: Organic agarwood oil accounts for over 36% of the market share, largely driven by consumer demand for clean-label and chemical-free products. More than 48% of organic cosmetic brands now include organic agarwood oil due to its premium positioning and therapeutic benefits. The segment is especially popular in aromatherapy and wellness sectors, with a 29% usage share among holistic product manufacturers.
• Conventional: Conventional agarwood oil dominates approximately 64% of the market, preferred for mass production and cost-efficiency. Nearly 55% of incense stick manufacturers use conventional agarwood oil in formulations, while 33% of fragrance companies opt for this type due to steady supply from cultivated agarwood plantations. It is widely utilized in traditional medicine as well, making up 21% of the usage within the pharmaceutical segment.

By Application

• Food & Beverages Industry: Agarwood oil usage in the food and beverage industry accounts for about 7% of the market, primarily in specialty beverages and traditional herbal infusions. Nearly 19% of premium tea producers in Southeast Asia and the Middle East use agarwood essence to enhance flavor and aroma profiles.
• Cosmetics Industry: The cosmetics sector holds more than 31% of the application share, with over 43% of high-end beauty brands incorporating agarwood oil for its anti-inflammatory and exotic fragrance properties. Face creams, serums, and essential oil blends are key product segments driving demand.
• Pharmaceutical Industry: Approximately 18% of agarwood oil is used in pharmaceuticals, with traditional and modern medicine formulations using its anti-bacterial and calming properties. Nearly 22% of Ayurvedic and herbal medicine companies rely on agarwood oil as a core ingredient in therapeutic applications.
• Chemical Industry: About 9% of agarwood oil consumption is attributed to chemical manufacturing, especially in producing aromatic chemical compounds and oleoresins. Around 16% of industrial fragrance compound makers use it in customized chemical blends.
• Personal Care Products Industry: This segment captures nearly 28% of total market demand, with 35% of personal grooming and luxury bath product brands using agarwood oil for its unique scent and nourishing qualities. Products such as hair oils, deodorants, and soaps frequently include this ingredient.
• Others: The remaining 7% of applications include religious ceremonies, incense manufacturing, and spa treatments. Around 21% of spiritual product manufacturers rely on agarwood oil for ritualistic uses and meditation practices, especially in East Asian and Middle Eastern markets.

Regional Outlook

The global Agarwood Oil market shows distinct regional patterns shaped by cultural preferences, industrial usage, and availability of agarwood resources. Asia-Pacific remains the dominant producer and consumer, contributing to over 62% of global supply and more than 55% of demand. North America and Europe continue expanding their share due to rising demand for natural fragrance and wellness products, jointly accounting for 28% of global consumption. The Middle East & Africa region has a strong cultural affinity for agarwood, with incense and perfume usage driving more than 14% of demand. Regional trade policies, sustainability practices, and production scalability play crucial roles in shaping the market dynamics and competitive landscape in each area.

North America

North America holds nearly 16% of the global Agarwood Oil market, driven primarily by demand from wellness and luxury fragrance brands. Over 47% of high-end personal care companies in the U.S. use agarwood oil in aromatherapy, spa, and grooming products. Consumer inclination toward plant-based and exotic oils has grown by 33%, especially in states like California and New York. Additionally, over 25% of niche perfumeries in North America have launched agarwood-based signature scents, while about 18% of essential oil retailers have expanded their agarwood offerings due to rising customer interest in natural anxiety-relief and sleep support formulations.

Europe

Europe contributes around 12% to the global Agarwood Oil market, with demand heavily concentrated in France, Germany, and the UK. Nearly 42% of organic beauty brands in Europe include agarwood oil in their luxury skincare and fragrance lines. Consumer interest in sustainable and ethical sourcing has pushed more than 29% of companies to seek certified agarwood oil. Additionally, around 21% of European spas and wellness centers incorporate agarwood oil into their premium aromatherapy treatments. Germany and France together account for nearly 54% of the European consumption due to their well-established cosmetics and natural healthcare industries.

Asia-Pacific

Asia-Pacific dominates with more than 62% of the global agarwood oil supply and over 55% of consumption. Countries like India, Vietnam, Thailand, and Indonesia are key cultivation zones, with over 68% of the region’s agarwood plantations located across these nations. Traditional medicine, which uses agarwood in over 37% of its formulations, drives demand significantly. Additionally, 49% of the global incense production is based in this region, with agarwood oil as a primary ingredient. Growing export activity, rising local consumption, and increased investments in plantation-based production have further expanded market potential in Asia-Pacific.

Middle East & Africa

Middle East & Africa hold around 10% of the agarwood oil market, primarily due to its cultural and religious significance. More than 58% of premium bakhoor and attar brands in the region utilize agarwood oil. In countries like Saudi Arabia and the UAE, nearly 41% of luxury perfume brands list agarwood as a primary scent component. Additionally, 36% of traditional wellness and holistic practitioners in this region prefer agarwood for its spiritual and therapeutic benefits. Imports have risen by over 24% in the last few years, mainly due to limited regional production and growing consumer demand.

List of Key Agarwood Oil Market Companies Profiled

Investment Analysis and Opportunities

The Agarwood Oil market is witnessing rising investor interest due to increasing demand across luxury goods, wellness, and alternative medicine sectors. Over 41% of global investors are focusing on sustainable agarwood plantation initiatives, with 33% targeting organic oil extraction projects. Asia-Pacific receives nearly 57% of total investment owing to favorable climate and labor availability. The rise in halal-certified cosmetic demand has opened up 21% of new investment channels, particularly in Middle East and Southeast Asia. Additionally, over 36% of SMEs are entering the market via e-commerce platforms, signaling expanding online sales potential. Niche perfumery and high-end spa chains are also investing in vertical integration strategies, contributing to nearly 26% of new business developments. Companies are collaborating with local growers to maintain sustainability, traceability, and consistent quality—appealing to more than 44% of conscious consumers. These emerging trends indicate that investors prioritizing organic sourcing and digital marketing channels can gain substantial returns in the evolving landscape.

New Products Development

Innovation in agarwood oil products is on the rise as over 38% of companies focus on expanding their product lines with functional and aromatic applications. More than 27% of beauty brands have recently launched anti-aging skincare infused with agarwood oil, while 19% of aromatherapy firms introduced new diffuser blends with enhanced purity. Product formulations targeting mental wellness—such as roll-ons and sleep balms—now represent 22% of newly introduced SKUs. Additionally, agarwood-infused beard oils, serums, and luxury soaps account for about 17% of recent product launches in the men’s grooming segment. Organic certification demand has led over 31% of manufacturers to reformulate offerings for cleaner labels. The chemical-free trend in personal care is driving over 29% of product innovation efforts. Meanwhile, packaging innovations in recyclable glass bottles and eco-friendly boxes have grown by 23% in response to sustainability-conscious consumer behavior. This development wave is expected to deepen market penetration across multiple application segments.

Recent Developments

• Asia Plantation Capital expands sustainable agarwood plantations: In 2023, Asia Plantation Capital expanded its sustainable plantation projects in Southeast Asia, adding over 12% more cultivated land dedicated to agarwood trees. This development aims to meet the growing demand for ethical sourcing, which increased by 31% among luxury fragrance and wellness brands. The expansion is expected to improve the consistency of supply and reduce strain on wild agarwood resources.
• Hoang Giang Agarwood launched premium therapeutic line: In early 2024, Hoang Giang Agarwood introduced a new therapeutic-grade product line targeting spa and wellness centers. These products focus on stress relief, sleep support, and mental wellness, catering to the 43% rise in consumer interest in holistic aromatherapy. The new range includes roll-on oils, massage blends, and diffuser-ready formats infused with high-purity agarwood extract.
• HYSSES rolled out agarwood-infused skincare in Asia: In 2023, HYSSES launched a skincare line infused with agarwood oil across its major Asian markets. The line saw strong demand in the first quarter, with more than 22% of product sales driven by anti-inflammatory and skin-calming claims. This launch helped the brand penetrate wellness-focused skincare users seeking natural, functional ingredients.
• BIOLANDES enhanced quality control labs for agarwood oil: In 2024, BIOLANDES upgraded its essential oil testing labs to include advanced chromatographic equipment to improve purity grading and detect adulteration. Over 37% of industry buyers noted the importance of traceability and quality assurance, and the move helps reinforce BIOLANDES' position as a reliable supplier in a market challenged by counterfeit oils.
• The Imperial Oud Company expanded online distribution: In late 2023, The Imperial Oud Company launched direct-to-consumer e-commerce operations targeting North America and Europe. Online agarwood oil orders rose by 28% through this new channel, with customer acquisition boosted by promotional bundles and loyalty programs. This move taps into the 24% growth in online wellness product sales over the past year.

Report Coverage

The Agarwood Oil market report offers a comprehensive analysis encompassing key trends, drivers, challenges, and regional dynamics across the global landscape. It provides segmented data on type, including organic and conventional agarwood oil, with each accounting for approximately 36% and 64% of market share respectively. By application, the report tracks usage across cosmetics, pharmaceuticals, personal care, and other industries, where personal care leads with 28% of demand. Geographically, Asia-Pacific dominates with over 62% supply and 55% consumption, while North America and Europe collectively contribute 28% of demand due to rising interest in wellness and sustainable beauty.

The report also includes company profiles of 20+ key players, highlighting recent innovations and market shares, such as Asia Plantation Capital and Hoang Giang Agarwood holding top positions with 17% and 13% share respectively. Investment trends, accounting for 41% of strategic activity, are focused on sustainable cultivation and online expansion. Recent developments in 2023 and 2024 underscore product innovation, quality enhancement, and e-commerce distribution. The analysis further emphasizes the influence of consumer demand for clean-label, halal-certified, and therapeutic products on shaping future growth strategies across all regions.