Market Analysts



Key Markets for International TradeAccording to CITES annual report data, the top 10 export destinations for Agarwood chips, power and timber are Singapore, Taiwan, Hong Kong, Saudi Arabia, United Arab Emirates, India, Japan, Oman, China and Qatar. Saudi Arabia and the United Arab Emirates are reported to be the two main centres of Agarwood consumption, with Saudi Arabia being the primary destination for the oil.
The fragrance market in MENA (Middle East and North Africa) is currently valued at US$4billion, with predictions of steady growth over the next few years. Demand for Agarwood oil has remained stable for decades due to industry demand for its unique and lasting fragrance and properties. Declining natural supply has however resulted in a steady price increase over the years, resulting in a tremendous market opportunity for a sustainable business model. It is very much a market ripe for the picking.
*CITES – Convention on International Trade in Endangered Species of Wild Fauna and Flora

Essential Raw Ingredient for High-end Fragrance Products
Highly prized by perfumers for its distinctively sweet, aromatic and complex scent, OUD is an essential raw ingredient used in the production of high-end perfumes and fragrance products. Nowhere is this more evident than in the Middle East, with the scent of Arabian OUD permanently lingering in the air of luxury shopping malls everywhere. The fragrance market in MENA (Middle East and North Africa) is currently valued at US$4bn, with predictions of steady growth over the next few years.
Steadily Increasing Global Demand
Global supply of Agarwood oil currently only meets about 20% of market demand, with the bulk of supply coming from South-east Asia and India as the predominant producers. Consumer demand continues to grow, especially in the Middle East and Asian markets due to the immense popularity of this valuable raw ingredient for oils, perfume and incense.
Scarcity of Natural Supply
Now an endangered species protected worldwide under the CITES convention due to indiscriminate felling, supply from natural Agarwood forests is limited at best. Wild Agarwood trees take around 50 to 100 years to grow to maturity, hence the scarcity of natural supply. The declining supply has continued to inflate prices, to the extent that premium grade agarwood is now valued at over US$20,000 per kg.
Low Competition
Agarwood plantations require long-term planning and professional management; it’s an investment of considerable time and effort to grow, harvest and process the trees. Unlike trading commodities, Agarwood plantations require a high level of professional care and attention over a 7-year period. Due to these reasons, it is currently an untapped market with low competition.
Stable Market
Demand for Agarwood oil has remained stable for decades due to industry demand for its unique and lasting fragrance and properties. Declining natural supply has however resulted in a steady price increase over the years, resulting in a tremendous market opportunity for a sustainable business model. It is very much a market ripe for the picking.