Agarwood Oil Market to Surpass US$450 Million by 2033: Growing Demand Fuels Rapid Expansion
Published: 2024-02-26 05:52:47

From 2023 through 2033, the demand for agarwood oil market (沈香油市場) is expected to grow globally at a CAGR of 6%. By the end of 2033, the global agarwood oil market, currently valued at US$ 250 million, is anticipated to reach a worth of US$ 450 million.

Under the Convention on Trade in Endangered Species of Wild Fauna and Flora, agarwood is protected as an endangered species. Agarwood is traded in logs, chips, oil, and dust, among other forms. The heartwood of the agarwood tree is where the resinous, aromatic, and extremely valuable essential oil known as agarwood oil—also referred to as eaglewood oil and oud oil—is produced. Aloeswood oil is another common name for agarwood oil.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐚 𝐒𝐚𝐦𝐩𝐥𝐞 𝐂𝐨𝐩𝐲 𝐨𝐟 𝐓𝐡𝐢𝐬 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.factmr.com/connectus/sample?flag=S&rep_id=8505 

In recent years, the agarwood oil market has been experiencing remarkable growth, driven by increasing consumer demand for natural fragrances and rising awareness of the therapeutic properties associated with agarwood oil. With its unique aroma and numerous health benefits, agarwood oil has captured the attention of consumers worldwide and is poised for further expansion. This article explores the growth opportunities and key trends shaping the agarwood oil market.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞:

To improve their position in the market and increase their market share, major companies in the agarwood oil industry are constantly investigating tactics including collaborations, investments, R&D projects, and acquisitions. In addition, a large number of start-ups are emerging in the worldwide market.

One of the top biotech businesses in Malaysia, DAdvance Agarwood Solutions, raised an incredible US$ 1.9 million in June 2022 through an equity crowdfunding (ECF) campaign run by Fundnel. The money raised will go toward meeting working capital needs, promoting marketing initiatives, and expediting the advancement of the company's proprietary inoculation technology—all of which will contribute to the overall economic growth of Malaysia's agarwood sector. The company is conducting research and development as well as improving the agarwood oil distillation process in collaboration with many Malaysian colleges.

Rising Demand for Natural Fragrances

One of the primary factors fueling the growth of the agarwood oil market is the rising demand for natural fragrances. In an era where consumers are becoming more conscious of the ingredients in their personal care and cosmetic products, there is a growing preference for natural and organic alternatives. Agarwood oil, derived from the resinous heartwood of agarwood trees, is prized for its rich, woody aroma and is widely used in perfumery, incense, and aromatherapy products.

𝐊𝐞𝐲 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐏𝐫𝐨𝐟𝐢𝐥𝐞𝐝:
•	Agro Products
•	ASSAM AROMAS
•	Grandawood
•	Biolandes
•	Deve Herbes
•	Biofinest
•	Nusaroma
•	Dauper SA
•	Hoang Giang Agarwood Ltd
•	HYSSES Pte Ltd
•	Pachara Innovation CO., LTD
•	The Imperial Oud Co

Increasing Awareness of Therapeutic Benefits

In addition to its aromatic properties, agarwood oil is valued for its therapeutic benefits in traditional medicine practices such as Ayurveda, Traditional Chinese Medicine (TCM), and aromatherapy. Agarwood oil is believed to possess anti-inflammatory, analgesic, and antimicrobial properties, making it popular for relieving stress, promoting relaxation, and improving overall well-being. As consumers seek natural remedies for health and wellness, the demand for agarwood oil as a therapeutic ingredient is on the rise.

Expanding Applications in Personal Care and Cosmetics

The agarwood oil market is witnessing growing adoption in the personal care and cosmetics industry, driven by the increasing use of natural ingredients in skincare, haircare, and beauty products. Agarwood oil is prized for its ability to impart a luxurious scent and impart a sense of indulgence to products such as perfumes, lotions, soaps, and shampoos. Additionally, agarwood oil is valued for its skin-soothing and anti-aging properties, making it a sought-after ingredient in premium skincare formulations.

𝐑𝐞𝐚𝐝 𝐌𝐨𝐫𝐞: https://www.factmr.com/report/agarwood-oil-market 
Key Trends Shaping the Market

Several key trends are shaping the agarwood oil market, including:

1.	Sustainable Sourcing Practices: With growing concerns about deforestation and habitat destruction, there is a shift towards sustainable sourcing practices in the agarwood oil industry. Companies are increasingly investing in agroforestry initiatives, plantation cultivation, and ethical harvesting methods to ensure the long-term sustainability of agarwood resources.

2.	Product Diversification: Manufacturers are diversifying their product offerings to cater to different consumer preferences and market segments. This includes the development of agarwood oil-based blends, perfumes, and personal care products targeting specific demographics such as millennials, luxury consumers, and wellness enthusiasts.

3.	Technological Advancements: Advances in extraction and distillation technologies are enabling manufacturers to produce high-quality agarwood oil more efficiently and sustainably. These technological innovations are driving improvements in yield, purity, and aroma profile, enhancing the overall quality and marketability of agarwood oil products.

Key Segments in Agarwood Oil Industry Research By Nature :

o	Organic
o	Conventional
•	By Application :
o	Cosmetics And Personal Care
o	Pharmaceuticals
o	Food and Beverages
•	By Distribution Channel :
o	Specialty Drug Stores
o	Supermarkets/Hypermarkets
o	e-Commerce
o	Convenience Stores
•	By Region :
o	North America
o	Latin America
o	Europe
o	Asia Pacific & China
o	Middle East & Africa

In conclusion, the agarwood oil market is poised for significant growth and innovation, fueled by increasing consumer demand for natural fragrances, rising awareness of therapeutic benefits, and expanding applications in personal care and cosmetics. By capitalizing on these growth opportunities and embracing key trends such as sustainable sourcing practices, product diversification, and technological advancements, stakeholders in the agarwood oil industry can position themselves for success in the evolving marketplace.

𝐓𝐨𝐩 𝐑𝐞𝐥𝐚𝐭𝐞𝐝 𝐑𝐞𝐩𝐨𝐫𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲:
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