Agarwood-Chips Global Market Report 2026

Agarwood chips are small wood fragments obtained from Aquilaria trees that develop a dark, fragrant resin within their heartwood. These chips are primarily burned as incense to emit a deep and persistent aroma. They are also widely utilized in the production of perfumes, particularly oud oil, as well as in various religious, spiritual, and cultural practices.

The primary types of agarwood chips comprise super-premium or ultra-high-quality chips, premium or top-grade chips, and standard-quality chips. Super-premium or ultra-high-quality chips represent the finest category of agarwood chips, widely utilized in luxury fragrance extraction and incense manufacturing because of their high resin concentration and exceptional aromatic characteristics. They are classified based on nature into organic and conventional categories. These products are marketed through direct and indirect distribution channels, while their key applications include oil extraction, incense and fragrance production, and other uses.

Tariffs are influencing the agarwood chips market by increasing expenses associated with cross-border trade of premium resin-rich wood products, fragrance raw materials, and processed agarwood derivatives used in incense and oil production applications. The resulting escalation in transportation and import costs is impacting super-prime and prime-grade agarwood chip segments, particularly in Asia-Pacific and Middle Eastern regions where production and consumption are highly concentrated. Distribution networks reliant on international sourcing are experiencing pricing pressure and supply disruptions due to shifting trade duties and export limitations. However, tariffs are also encouraging the development of domestic agarwood cultivation, strengthening regional processing infrastructure, and supporting local sourcing initiatives, thereby improving long-term supply stability and promoting more sustainable production practices within the market.

The agarwood-chips market size has grown strongly in recent years. It will grow from $40.06 billion in 2025 to $43.29 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth during the historic period can be attributed to the expanding cultural and religious utilization of incense products, increasing global demand for oud-based fragrances, growth in agarwood cultivation activities across Asia, rising trade of natural aromatic wood materials, and increasing preference for traditional wellness and meditation products.

The agarwood-chips market size is expected to see strong growth in the next few years. It will grow to $59.53 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth during the forecast period can be attributed to rising demand for sustainable luxury fragrance ingredients, increasing adoption of organic incense products, expansion of premium perfume manufacturing applications, growing investments in cultivated agarwood plantations, and heightened consumer interest in exotic aromatic experiences. Major trends during the forecast period include increasing demand for high-quality resin-rich agarwood chips in luxury incense applications, growing use of agarwood chips in traditional religious and spiritual practices, rising consumer preference for natural and organic fragrance ingredients, expansion of cultivated agarwood plantation practices to ensure sustainable supply, and increasing popularity of oud-based perfumes in global luxury fragrance markets.

The expansion of cosmetics and personal care applications is expected to propel the growth of the agarwood chips market going forward. Expansion of cosmetics and personal care applications refers to the increasing use of natural and premium ingredients in skincare, haircare, and beauty products to enhance product value and efficacy. The expansion of cosmetics and personal care applications is increasing due to rising consumer preference for organic, natural, and luxury beauty products, along with growing awareness of the benefits of plant-based ingredients. Agarwood chips are processed to extract oud oil, which is widely used as a high-value ingredient in premium perfumes, skincare formulations, and personal care products due to its distinctive fragrance and therapeutic properties. For instance, in June 2025, according to Cosmetic, Toiletry and Perfumery Association, a UK-based trade association, in 2024, the toiletries and beauty sector recorded sales of approximately $13.0 billion (£10.3 billion), reflecting a robust year-on-year growth of 8.4%. Therefore, the expansion of cosmetics and personal care applications is driving the growth of the agarwood chips market.

The growth of spa, meditation, and relaxation industries is expected to propel the growth of the agarwood chips market going forward. The growth of spa, meditation, and relaxation industries refers to the increasing demand for wellness services and experiences focused on stress reduction, mental well-being, and holistic health. The growth of spa, meditation, and relaxation industries is increasing due to rising stress levels, growing awareness of mental health, and increasing consumer preference for wellness-oriented lifestyles. Agarwood chips are widely used in these industries as a key material for incense, aromatherapy, and relaxation rituals due to their calming fragrance and therapeutic properties. For instance, in April 2024, according to the International Spa Association, a US-based organization, the U.S. spa industry recorded revenues of $21.3 billion in 2023, up from $20.1 billion in 2022, reflecting a year-over-year growth of 5.7%. Therefore, the growth of spa, meditation, and relaxation industries is driving the growth of the agarwood chips market.

The growth of e-commerce is expected to propel the growth of the agarwood chips market going forward. Growth of e-commerce refers to the increasing use of online platforms and digital marketplaces for purchasing goods and services, enabling wider product accessibility and convenience for consumers. The growth of e-commerce is increasing due to rising internet penetration, smartphone adoption, and changing consumer preferences toward convenient and contactless shopping experiences. Agarwood chips benefit from e-commerce platforms as they allow manufacturers and retailers to reach a global customer base, showcase premium and niche products, and offer direct-to-consumer sales channels for incense, fragrance, and wellness applications. For instance, in March 2026, according to the Census Bureau, a US-based government agency, Total e-commerce sales were estimated at $1,233.7 billion in 2025, reflecting a 5.4% year-on-year increase compared to 2024. Therefore, the growth of e-commerce is driving the growth of the agarwood chips market.

Major companies operating in the agarwood-chips market are Ajmal Perfumes, Arabian Oud, Al Haramain Perfumes, Rasasi Perfumes Industry LLC, Abdul Samad Al Qurashi, Oudh Al Anfar, Asia Plantation Capital Pte. Ltd., Fragrance Du Bois, Treedom Group, Lifa Fragrance Co. Ltd., Sadaharitha Plantations Limited, Hoang Giang Agarwood Company Limited, Nhang Thien Joint Stock Company, Agarvina Co. Ltd., Binh Nghia Agarwood Co. Ltd., Oud Du Bois, Golden Sheaf Industries Private Limited, Lao Agar International Development Co. Ltd., Thien Phu Agarwood Co. Ltd., Thai Borai Agarwood Co. Ltd., Po Luo Senko Agarwood Company Limited, Ensar Oud, Sai Export India Private Limited, Assam Aromas Private Limited, Nagaland Agarwood Private Limited, Duy Hai Agarwood Co. Ltd., Green Agro Agarwood Products Co. Ltd., Grandawood Agarwood Australia Pty Ltd., Myanma Treasure Co-operative Limited

North America was the dominant region in the agarwood-chips market in 2025. Asia-Pacific is expected to be the rapidly expanding regionduring the forecast period. The regions covered in the agarwood-chips market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the agarwood-chips market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The agarwood-chips market consists of sales of raw agarwood chips, processed agarwood chips, graded chips and powder or small chip fragments. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The agarwood-chips market research report is one of a series of new reports from The Business Research Company that provides agarwood-chips market statistics, including agarwood-chips industry global market size, regional shares, competitors with a agarwood-chips market share, detailed agarwood-chips market segments, market trends and opportunities, and any further data you may need to thrive in the agarwood-chips industry. This agarwood-chips market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Agarwood-Chips Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses agarwood-chips market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 16 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
• Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for agarwood-chips ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The agarwood-chips market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Super-Prime Or Ultra-Premium Chips; Prime Or High-Grade Chips; Standard-Grade Chips
• 2) By Nature: Organic; Conventional
• 3) By Distribution: Direct Channel; Indirect Channel
• 4) By Application: Oil Production; Incense And Fragrance; Other Applications
• Subsegments:
• 1) By Super-Prime Or Ultra Premium Chips: Wild Natural Resin Rich Chips; Hand Selected Aged Agarwood Chips; High Density Dark Resin Chips
• 2) By Prime Or High Grade Chips: Cultivated Resin Infused Chips; Semi Natural Agarwood Chips; Medium Resin Content Chips
• 3) By Standard Grade Chips: Low Resin Content Chips; Artificially Induced Agarwood Chips; Commercial Grade Agarwood Chips
• Companies Mentioned: Ajmal Perfumes; Arabian Oud; Al Haramain Perfumes; Rasasi Perfumes Industry LLC; Abdul Samad Al Qurashi; Oudh Al Anfar; Asia Plantation Capital Pte. Ltd.; Fragrance Du Bois; Treedom Group; Lifa Fragrance Co. Ltd.; Sadaharitha Plantations Limited; Hoang Giang Agarwood Company Limited; Nhang Thien Joint Stock Company; Agarvina Co. Ltd.; Binh Nghia Agarwood Co. Ltd.; Oud Du Bois; Golden Sheaf Industries Private Limited; Lao Agar International Development Co. Ltd.; Thien Phu Agarwood Co. Ltd.; Thai Borai Agarwood Co. Ltd.; Po Luo Senko Agarwood Company Limited; Ensar Oud; Sai Export India Private Limited; Assam Aromas Private Limited; Nagaland Agarwood Private Limited; Duy Hai Agarwood Co. Ltd.; Green Agro Agarwood Products Co. Ltd.; Grandawood Agarwood Australia Pty Ltd.; Myanma Treasure Co-operative Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: Word, PDF or Interactive Report
• + Excel Dashboard
• Added Benefits
• Bi-Annual Data Update
• Customisation
• Expert Consultant Support

Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.