Agarwood Chips Market to Reach US$67.45 Bn by 2031, Growing at a 7.4% CAGR | Persistence Market Research

The global agarwood chips market is poised for significant expansion, rising from US$41.05 billion in 2024 to US$67.45 billion by 2031, growing at a CAGR of 7.4% over the forecast period (2024-2031). Agarwood chips, derived from infected Aquilaria trees, are highly valued for their aromatic properties and are extensively used in perfumes, incense, and traditional medicine. The market has shown sustained demand across the Middle East, Asia-Pacific, and Western markets, driven by both cultural importance and rising luxury consumption.

One of the key growth drivers is the growing popularity of natural and high-end aromatic products in wellness and lifestyle sectors. The personal care and cosmetics segment leads the market due to increased demand for premium fragrances. Regionally, the Asia-Pacific market dominates due to a deep-rooted cultural preference for agarwood and robust production hubs in countries like India, Vietnam, and Thailand. Religious, therapeutic, and spiritual usage further amplifies consumption across the region.

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✅Key Highlights from the Report:

➤The global agarwood chips market is projected to grow from US$41.05 Bn in 2024 to US$67.45 Bn by 2031.
➤The market will expand at a healthy CAGR of 7.4% between 2024 and 2031.
➤Asia-Pacific remains the leading regional market due to traditional usage and high production.
➤The personal care and cosmetics segment is the top consumer segment for agarwood chips.
➤Consumer shift towards sustainable and premium fragrances is fueling market demand.
➤Luxury perfumery and aromatherapy applications are creating lucrative opportunities globally.

📊 Market Segmentation:

The agarwood chips market is segmented primarily based on product type, end-user, and application. Based on product type, chips derived from wild Aquilaria species remain in high demand due to their rare, intense fragrance. However, cultivated agarwood chips are gaining traction as sustainable harvesting methods and regulated plantations ensure consistency and affordability. The classification also includes grades of chips based on resin content and scent intensity, impacting pricing and usage.

In terms of end-users, the market is categorized into personal care & cosmetics, religious use, pharmaceutical applications, and home fragrance. The personal care sector dominates, thanks to growing demand for organic and luxurious scent products. Religious institutions continue to be major consumers, especially in Asia and the Middle East, where agarwood incense is integral to rituals. Pharmaceutical and therapeutic uses are also on the rise due to its anti-inflammatory and calming properties.

📊 Regional Insights:

In the Asia-Pacific region, countries like India, Vietnam, Laos, and Thailand are not only leading producers but also major consumers. Cultural significance, religious rituals, and ancient medical practices ensure strong domestic demand. This region remains the epicenter of global agarwood trade and cultivation.

Meanwhile, the Middle East and Africa are emerging as lucrative markets driven by traditional preferences for oud-based perfumes and incense. Countries like UAE and Saudi Arabia show strong demand in luxury fragrance markets. North America and Europe are also witnessing a steady rise in consumer interest in natural aromatics and wellness-driven products.

Market Drivers

The surge in global demand for natural aromatic products is a pivotal driver for the agarwood chips market. With increasing consumer inclination toward luxury and wellness, high-end perfumery and personal care sectors are incorporating agarwood chips in product formulations. Additionally, growing awareness about the health and therapeutic benefits of agarwood-such as stress relief and anti-inflammatory properties-further boosts its demand in aromatherapy and alternative medicine.

Market Restraints

Despite the promising growth, the market faces constraints due to the limited availability and high cost of natural agarwood. The harvesting process is time-consuming and often dependent on natural infection, making it resource-intensive. Illegal logging and unregulated trade further hamper the sustainability of the supply chain. These challenges result in elevated prices, limiting accessibility to a broader consumer base.

Market Opportunities

Opportunities abound in the cultivation of sustainable and plantation-based agarwood. With advancements in artificial inoculation techniques and increasing government support for agarwood plantations, producers can now yield resin-rich chips more efficiently. Moreover, the expansion of e-commerce and niche luxury markets globally opens avenues for manufacturers to reach wellness-conscious and high-end consumers with unique product offerings like artisanal incense, oud perfumes, and organic essential oils.

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👉Reasons to Buy the Report:

✔️Understand the market size and growth potential of the agarwood chips industry from 2024 to 2031.
✔️Gain insights into leading segments and regions dominating the global market.
✔️Identify key growth drivers, challenges, and opportunities influencing market dynamics.
✔️Access strategic recommendations and insights tailored for key stakeholders.
✔️Stay informed with detailed segmentation, regional analysis, and competitive landscape.

📌 Key Players

✦Assam Aromas
✦Asia Plantation Capital
✦OudHind
✦Hoang Giang Agarwood Ltd.
✦Maharana Fragrances
✦DutAgarwood
✦AgarAura
✦Tashi Exports
✦Nature's Oud
✦Nagaad Resins and Gums

■ In 2024, Asia Plantation Capital announced the expansion of its agarwood cultivation facilities in Southeast Asia to meet rising global demand.
■ Hoang Giang Agarwood Ltd. introduced a new line of premium agarwood chip products aimed at the high-end European fragrance market.

This comprehensive analysis of the agarwood chips market provides valuable insights into its current landscape and future trajectory. With a growing demand for natural aromatics, supportive cultivation practices, and expanding end-user applications, the market is poised for sustained growth. Companies looking to enter or expand within this space must focus on innovation, sustainable sourcing, and tapping into luxury and wellness trends to remain competitive.

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This release was published on openPR.