Agarwood Chips Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)
The global agarwood chips market, characterized by the exotic and fragrant resin-suffused wood known as agarwood, oud, or aloeswood, is on a fragrant growth trajectory. The market has witnessed a remarkable growth, culminating in a valuation of US$ 45 billion in 2024. According to a study by Fairfield Market Research, the global sales of agarwood chips are estimated to continue their aromatic journey, the market is expected to reach a mesmerizing size of approximately US$ 80 billion by the end of 2031.
Cultural Significance in UAE Drives Demand
Agarwood holds deep cultural significance in the United Arab Emirates (UAE) and Arabic culture. High-grade agarwood chips are used in traditional practices such as honoring guests and perfuming garments before special occasions and prayers. The preciousness and luxury associated with agarwood contribute to its high price, making it a symbol of status and prestige. As a part of the heritage and cultural identity of the UAE, the continuous demand for agarwood chips in the region is bolstering market growth.
Rising Demand in the Fragrance Industry
Agarwood is a key ingredient in the production of high-end perfumes and incense. The global supply of agarwood meets only a fraction of the demand, with bulk supply coming from Southeast Asian countries. Manufacturers are introducing innovative agarwood-based products in their portfolios, catering to the high-end fragrance market.
Hurdles in Agarwood Adoption
Price fluctuations and trade restrictions are impacting the adoption of agarwood chips. Fluctuations in import prices directly affect retail prices, leading to instability in the market. Trade restrictions in countries like India contribute to rising prices.
UAE: A Lucrative Market
The Middle East's deep cultural integration of agarwood and its products, coupled with rapid development in the region, makes the UAE a lucrative market for agarwood chip manufacturers.
Competitive Landscape
Market players are emphasizing advanced manufacturing techniques to offer high-quality agarwood chips. Some are diversifying their product offerings to include innovative agarwood-based products such as jewelry and accessories, agarwood soap bars, and agarwood-infused teas and biscuits.
Key Companies in the Agarwood Chips Market
• Grandawood Agarwood Australia
• Binh Nghia Agarwood Co., Ltd
• Hoang Giang Agarwood Ltd.
• Aalam Ul Oud
• KAB Industries
• Duy Hai AGARWOOD
• Thien Phu Agarwood Co., Ltd
• Asia Plantation Capital Pte Ltd.
• Ori Oud Asia
• ASSAM AROMAS
• Sadaharitha Plantations Limited
• Green Agro
• Thai Borai Agarwood Co., Ltd.
• KANHA AROMA
• Homegrown Concept Sdn Bhd (HGC)
• THE MJI GROUP
• Sai Export India
• Kamil Swarga Woods Ltd
• THE WESTWOOD GROUP
The global agarwood chips market is poised to continue its fragrant journey, driven by cultural significance, demand in the fragrance industry, and innovative product offerings.
Market Segmentation
By Nature:
• Organic
• Conventional
By End Use:
• Incense Sticks
• Fragrances (Perfumes)
• Retail/ Household
By Distribution Channel:
• Business to Business (B2B)
• Business to Consumers (B2C)
Hypermarket/Supermarket
Specialty Stores
Online Retail
By Region:
• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa
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