PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1398785
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1398785
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.
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.
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.
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.
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.
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.
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.