Agarwood Chips Market to Reach $67.45 Bn by 2031, Driven by Luxury & Wellness Demand

✅ Agarwood Chips Market Overview

The global agarwood chips market is estimated to increase from US$41.05 Bn in 2024 to US$67.45 Bn by 2031, recording a robust CAGR of 7.4% during the forecast period. The market expansion is largely driven by the surging demand for natural incense, luxury perfumes, and traditional medicines across Asia-Pacific and the Middle East. Agarwood chips, derived from Aquilaria trees, have high cultural, spiritual, and therapeutic significance, which makes them a premium commodity in the global fragrance and wellness industries.

Among segments, the incense and perfumery industry leads the agarwood chips market, owing to rising adoption in religious ceremonies and luxury fragrance production. Geographically, Asia-Pacific dominates the market, especially countries such as India, Vietnam, and Thailand, due to their traditional association with agarwood, widespread usage in rituals, and a booming export ecosystem supporting global demand.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.persistencemarketresearch.com/samples/29233

✅ Key Highlights from the Report

➤ The global agarwood chips market is projected to grow at a CAGR of 7.4% between 2024 and 2031.
➤ Market value is expected to reach US$67.45 Bn by the end of 2031.
➤ Asia-Pacific remains the leading region due to cultural traditions and high production volumes.
➤ Incense and perfumery segment dominates the market share.
➤ Growing adoption in aromatherapy and wellness products fuels demand.
➤ Premium positioning of agarwood chips in luxury fragrance markets boosts global exports.

✅ Market Segmentation

The agarwood chips market can be segmented based on product type, including high-grade, medium-grade, and low-grade chips. High-grade chips are the most sought after due to their rarity, deep resin concentration, and superior fragrance profile, making them highly valuable in luxury perfumery and ceremonial use. Medium and low-grade chips, while less expensive, are widely used in mass-market incense and wellness products.

In terms of end-users, the market spans across perfumery, incense, pharmaceuticals, and personal care industries. Among these, perfumery and incense dominate due to the rising global trend for natural, exotic, and sustainable fragrances. Increasing use in traditional medicine and modern aromatherapy also contributes to market expansion, reflecting the multifunctional appeal of agarwood chips.

✅ Regional Insights

The Asia-Pacific region dominates the global agarwood chips market, driven by strong cultural integration, religious rituals, and large-scale production in countries like India, Thailand, and Vietnam. The region also acts as a major exporter, supplying premium agarwood chips to the Middle East and Western markets.

Meanwhile, the Middle East and Africa represent the second-largest market, with high demand for agarwood in incense and perfumes. The luxury fragrance industry in the UAE and Saudi Arabia has positioned agarwood chips as a status symbol, fueling continuous imports and price appreciation.

✅ Market Drivers

The growing demand for natural and luxury fragrances is a primary driver of the agarwood chips market. With consumers increasingly preferring natural over synthetic products, agarwood's unique fragrance profile is gaining global popularity. Religious and cultural significance, especially in Asia-Pacific and the Middle East, further accelerates adoption.

✅ Market Restraints

A key restraint for the agarwood chips market is the limited supply of natural agarwood due to overharvesting and the slow growth cycle of Aquilaria trees. Strict government regulations and the need for sustainable cultivation practices also limit large-scale production. High costs further restrict access to premium-grade agarwood products for mass consumers.

✅ Market Opportunities

Significant opportunities lie in sustainable plantation projects and biotechnology advancements that ensure resin induction in cultivated trees. Additionally, the rising adoption of agarwood in the wellness, aromatherapy, and luxury personal care segments presents untapped growth potential. Expanding e-commerce channels also enable greater global accessibility to niche consumers.

✅ Reasons to Buy the Report

☑ Comprehensive analysis of market size, share, and growth trends
☑ Insights into key drivers, restraints, and opportunities shaping the industry
☑ Detailed segmentation analysis across product types and end-user industries
☑ Regional insights highlighting leading and emerging markets
☑ Company profiles with recent strategic developments for competitive benchmarking

✅ Frequently Asked Question

Why is agarwood considered so valuable and what drives its high market demand?

Agarwood is one of the most valuable natural resources in the world due to its unique fragrance, rarity, and cultural significance. It is formed when Aquilaria trees produce resin in response to fungal infection, creating a dark, aromatic wood. The rarity of naturally occurring agarwood, combined with its deep historical association with spirituality, luxury, and wellness, makes it extremely valuable. In religious practices, especially across Asia and the Middle East, agarwood chips are burned during rituals for their calming aroma. In perfumery, it is considered a luxury base note, often featured in high-end perfumes. Moreover, its therapeutic use in traditional medicine and modern aromatherapy boosts its global demand. The limited natural supply and rising consumption across wellness and luxury sectors drive the consistent appreciation of its market value.

✅ Company Insights

✦ Ajmal Perfumes
✦ Agarwood Indo Nusantara
✦ Nha Trang Agarwood Co. Ltd.
✦ Assam Agarwood India
✦ Oud Asia
✦ Oudh Arabia

■ In 2024, several leading companies announced strategic partnerships to expand sustainable agarwood plantations in Southeast Asia.

■ Ajmal Perfumes launched a new luxury perfume collection infused with premium agarwood chips to target Middle Eastern consumers in 2025.

✅ Conclusion

The agarwood chips market is poised for steady growth, projected to reach US$67.45 Bn by 2031, driven by rising global demand for natural fragrances, spiritual applications, and wellness products. While supply constraints and regulatory frameworks present challenges, innovations in sustainable cultivation and resin-induction techniques create new avenues for growth. Asia-Pacific continues to dominate production, while the Middle East remains a key consumer hub, reinforcing agarwood's reputation as a globally sought-after luxury commodity.

✅Explore the Latest Trending Research Reports

Fermented Sweeteners Market: https://www.persistencemarketresearch.com/market-research/fermented-sweeteners-market.asp

Botanical Infused Beverage Market: https://www.persistencemarketresearch.com/market-research/botanical-infused-beverage-market.asp

Sugar Free Confectionery Market: https://www.persistencemarketresearch.com/market-research/sugar-free-confectionery-market.asp

Desiccated Coconut Powder Market: https://www.persistencemarketresearch.com/market-research/desiccated-coconut-powder-market.asp

✅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 2012, 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.

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

This release was published on openPR.