Agarwood Essential Oil Market Set to Reach US$ 278.1 Mn by 2031 - Persistence Market Research

The global agarwood essential oil market is set to witness substantial growth, with its value expected to increase from US$204.3 Mn in 2024 to US$278.1 Mn by 2031, reflecting a CAGR of 4.5% during the forecast period. This growth is driven by the increasing preference for natural and organic products, the rising popularity of aromatherapy, and expanding applications across personal care, cosmetics, and wellness industries.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response):
https://www.persistencemarketresearch.com/samples/19708

Key Market Highlights

• Sustainability and eco-consciousness trends are propelling demand for high-quality essential oils, including agarwood essential oil.
• Latin America is projected to experience a CAGR of 6.94% in 2024.
• The Middle East and Africa is expected to account for a market share of 30.32% in 2024.
• The organic segment will dominate the market with a projected revenue share of 97.57% by the end of 2024.
• The personal care and cosmetics industry will secure a substantial revenue share of 98.47% by the end of 2023.

Regional Market Insights

Latin America: High Growth Potential with a CAGR of 6.94%
Latin America is projected to expand at a CAGR of 6.94% through 2031, driven by increasing demand for essential oils in the cosmetics industry. The preference for natural and sustainable products is significantly contributing to the market expansion in the region. As consumers become more aware of the benefits of agarwood essential oil, its adoption in beauty and personal care is expected to increase substantially.
Middle East and Africa: Commanding Market Share of 30.32%
The Middle East and Africa are expected to maintain a significant presence in the global market, accounting for 30.32% of the market share in 2024. This dominance is attributed to factors such as strategic geographic positioning, a rich resource base, and expanding consumer demand for premium natural products. The region is witnessing increased adoption of luxury fragrances, wellness products, and therapeutic oils, further boosting the agarwood essential oil market.

Market Trends and Growth Factors

1. Rising Demand for Natural and Organic Products
Consumers are shifting toward natural and organic personal care products, fueling the growth of agarwood essential oil. With increasing awareness of synthetic chemicals' adverse effects, buyers are actively seeking chemical-free, sustainable, and therapeutic alternatives. This trend is propelling the organic segment, which is projected to capture 97.57% of the market share in 2024.
2. Aromatherapy Driving Market Growth
The growing adoption of aromatherapy is another major factor boosting the market. Agarwood essential oil is widely used for its calming and stress-relieving properties. With the expansion of spas, wellness centers, and home fragrance markets, the demand for premium-grade agarwood oil is expected to surge.
3. Increasing Use in Personal Care and Cosmetics
The personal care and cosmetics industry is a major contributor to the market, projected to secure 98.47% of the revenue share by the end of 2023. The oil is incorporated into luxury skincare, perfumes, and therapeutic formulations due to its anti-inflammatory and antioxidant benefits. Premium brands are leveraging agarwood's unique fragrance and medicinal properties to enhance product appeal.
4. Technological Advancements in Extraction Processes
Market players are investing in advanced extraction techniques to improve the yield and quality of agarwood essential oil. Sustainable harvesting methods are gaining traction, ensuring minimal environmental impact while maintaining purity. These innovations contribute to expanding market opportunities while reducing production costs.

Challenges in the Market

1. Sustainability and Overharvesting Concerns
The overexploitation of Aquilaria trees poses a significant challenge to the agarwood essential oil market. The rarity of agarwood has led to concerns about sustainability, prompting strict government regulations and conservation efforts. Ethical sourcing and sustainable plantation initiatives are being introduced to address these concerns.
2. High Market Prices and Accessibility Issues
Due to the labor-intensive extraction process and limited availability, agarwood essential oil is considered a luxury product with a high market price. This restricts its accessibility, especially in price-sensitive markets. The presence of counterfeit or adulterated products also poses a challenge to market authenticity and consumer trust.

Future Opportunities

1. Expansion into Emerging Markets
Regions such as Southeast Asia, Africa, and Latin America present lucrative growth opportunities for market players. The increasing disposable income and awareness of natural wellness products in these regions create a demand surge. Companies are expanding distribution networks and marketing strategies to tap into these markets.
2. Growth of Eco-Friendly and Sustainable Products
Consumers are prioritizing environmentally friendly products, pushing manufacturers to adopt sustainable sourcing and production techniques. Brands emphasizing ethical practices, certified organic products, and transparent labeling are expected to gain a competitive edge in the market.

Competitive Landscape

The agarwood essential oil market features a mix of well-established players and emerging brands focused on sustainability and premium quality. Leading players in the industry include:
• BIOLANDES SAS
• Tien Phuoc Co., Ltd
• Hoang Giang Agarwood Ltd.
• Dauper S.A.
• Katyani Exports
• Gritman Essential Oils
• Essential Oil Wizardry
• Biofinest USA
• Nusaroma
• Aromaaz International
• Kush Aroma Exports
• SVA Naturals

Recent Industry Developments

• March 2023: Agarwood Co Vietnam launched Agarwood Chips, a natural alternative for aromatherapy, meditation, and home fragrance.
• April 2023: Kayali Perfumes introduced Sweet Oud, a luxurious fragrance infused with agarwood, catering to premium perfume enthusiasts.

Market Segmentation

By Nature
• Conventional
• Organic
By End Use
• Food and Beverage Industry
• Personal Care & Cosmetic Industry
• Pharmaceutical Industry
By Region
• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

Contact Us:
Persistence Market Research
G04 Golden Mile House, Clayponds Lane
Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 25.92, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.