Agarwood Essential Oil Market

Agarwood Essential Oil Market Outlook (2023 to 2033)

PMR forecasts the Agarwood Essential Oil Market value at US$ 295.1 Million by end of 2033 through a constant growth rate of 9.0% from 2023. The market currently is pegged at US$ 135.1 Million and is anticipated to expand at higher rate in the impending years, owing to buoyant demand for essential oil in cosmetic industry.

Agarwood Essential Oil Market Size (2023E)	US$ 135.1 Million
Projected Sales of Agarwood Essential Oil (2033F)	US$ 295.1 Million
Value CAGR (2023 to 2033)	9.0%
Value Share of Top 4 Countries (2022E)	37.8%

Agarwood Essential Oil Consumption Analysis (2018 to 2022) Vs. Market Estimations (2023 to 2033)

In the last few years (2018 to 2022), the global agarwood essential oil market expanded at 8.6% value CAGR and registered the sales of around US$ 124.2 Million for 2021. The market in 2018 generated the revenue of US$ 87.1 Million, attributing to the growing utilization of agarwood essential oil in pharmaceutical industry.

Agarwood essential oil is a focused on hydrophobic liquid comprising of strong aroma compounds of agarwood, which is produced through various processes such as water distillation process and steam distillation process. Agarwood oil has purifying, transcendent, warming and balancing qualities and therefore it blends well with other essential oils, particularly with sandalwood, rose, jasmine, carnation and geranium. Moreover, the global essential oil is being anticipated to witness a steady growth in the coming future. The tectonic shift towards preventive healthcare, along with improved standard of living among consumers are few of the decisive dynamics driving the demand for essential oil market across the globe.

The worldwide demand for Agarwood Essential Oil is estimated to grow at higher rate of 9.0%, owing to increasingly growing demand for essential in Europe and North America. The market in the upcoming years is estimated to reach the valuation of US$ 295.1 Million by end of 2033.

What are the Key Trends in the Market for Agarwood Essential Oil?

“Growing Application of Agarwood Essential Oil in Aromatherapy”

Globally, the essential oil and aromatherapy market is estimated to escalate at a higher growth rate, due to high awareness about the healing properties of essential oil and oil used for aromatherapy, on a global level. The application of essential oil and aromatherapy is increasing in the field of medical science, thereby increasing its demand all across the globe. Increasing consumer experimentation regarding unconventional health problem aiding therapies is supporting the growth of the essential oil and aromatherapy market. Agarwood essential oil is considered as an effective medicine for asthma and other medical conditions, which has increased its volume consumption in aromatherapy industry. The ability to treat various medical conditions has now made agarwood essential oil a popular product among consumers, and this increasing popularity is expected to bolster the demand for agarwood essential oil over the years.

“Increasing Consumer Expenditure on Natural Products”

Consumer spending on agarwood essential oil has increased due to the growing awareness among people regarding the benefits of natural organic essential oils on the skin and hair. With increasing consumer disposable income in developing nations in Asia Pacific such as China, India, and Korea, among others, people are now able to afford cost-sensitive products such as agarwood essential oil. Agarwood essential oil is not just an aromatic, sweet oil used for perfumery purposes, but has many other amazing super healing powers such as offering both, physical as well as emotional relief for problems such as migraine, insomnia, burns, insect bites, skin problems, infections, stress, and nervous tension. As a result of these properties, the demand for agarwood essential oil is witnessing an increase in the market.

“Consumer Preference for Authentic Essential Oil Products”

Consumer preference for authentic agarwood essential oil products is expected to witness significant increase over the next couple of years. Manufacturers and suppliers of fragrance and incense products are enhancing their product offerings in lines to consumer demand and market insights. Numerous producers are increasingly penetrating the essential oil market, attributing to high profit margins. Many manufacturers are planning to launch agarwood essential oil products in the forthcoming years. Additionally, contenders are also expected to market their products with natural labels, to attract existing and increase the number of new customers. The entry of new players is expected to drive the growth of the global agarwood essential oil market to a significant extent over the forecast period.

“Higher Dependency on Imported Goods”

The agarwood essential oil market is highly active in nature, as the supply and demand situation keeps on shifting from one hand to another. Agarwood essential oil is the key ingredient in the perfume and incense industry. As agarwood essential oil is also used in aromatherapy, to cure sicknesses, and stimulate well-being, many consumers from the Western world are demanding these products. However, due to less production and dearth of international players, consumers have to rely on imported good from countries such as India, Indonesia, Malaysia, Vietnam, Cambodia, Thailand, Laos, and Papua New Guinea, among others, who produce these products on a large scale.

Country-wise insights

Which region is dominating the global Agarwood Essential Oil market?

Middle East- Africa holds the highest value share of above 30% in the global market. The market in 2023 is pegged at US$ 51.5 Million and is anticipated to reach US$ 109 Million by end of 2033.

What is demand outlook for Agarwood Essential Oil in Latin America?

The sales of agarwood essential oil in Latin America market is valued at US$ 4.9 Million for 2023 and predicted to grow at 6.9% CAGR over the forecast period owing to growing utility of essential oil in cosmetic industry.

Category-wise insights

Which type of agarwood essential oil is gaining high demand in the global market?

Natural agarwood essential oil segment is expected to be dominant in the global agarwood essential oil market, with a revenue share of 97.5% by 2023 end owing to growing preference for natural and chemical free products among consumer.

Which end use industry is gaining high demand in the global agarwood essential oil market?

Among the end use segments, the personal care & cosmetic industry segment is estimated to hold a significant share in the global agarwood essential oil market, with a revenue share of 98.4% by 2023 end.

Competitive Dashboard

Global agarwood essential oil market is prominently characterized by an essence of large number of local and regional players. As companies in Asia Pacific are the largest producers of agarwood essential oil, local players and distributors also become price regulators of the market. The market share accounted by the multinational players is quite low, only around 10-15% share is accounted by such players.

Many manufacturers are entering markets in untapped regions through the collaborations with major regional participants. Most collaborations are focused on expanding presence in countries such as Oman and Qatar. Companies are focusing on manufacturing biologically sourced agarwood essential oil in order to achieve hypothesis in the sustainable production of natural products.
Moreover, players are focusing on developing and offering products with the highest purity and most stable output.

The manufacturers engaged in agarwood essential oil production are offering ISO 9001: 2008, GMP, USDA Organic certified and FDA approved products to its costumers across the globe. The companies are currently offering 100% natural products to their customers with lucrative offers with buy back guarantee.

• Albert Vieille SAS is expanding its network of representatives across the globe in order to maintain a close relationship with its international costumers. This move is also helping the company to deepen its cultural understanding of its target markets.
• Asia Plantation Capital Pte. Ltd has partnered with Fragrance Du Bois for the supply of 100% pure, and natural agarwood essential oil in order to enhance its business of agarwood and agarwood based product.
• WEFIVE group offers Indian agarwood essential oil at highly affordable prices and also promises to offer oil of 100% purity and perfection.
• The Imperial Oud Co prime strategy is to provide high quality agarwood oil to its customers with 100% satisfaction. To achieve the desired quality in the production process, the company has acquired various credible global certificates from ISO, FDA and more for efficacy of products.

Agarwood Essential Oil Industry Report Scope

Attribute	Details
Forecast period	2023 to 2033
Historical data available for	2018 to 2022
Market analysis	USD million for value
Key regions covered	North America Latin America Europe South Asia & Pacific East Asia Middle East & Africa
Key countries covered	United States Canada Germany United Kingdom France Italy Spain Russia China Japan South Korea India Thailand Malaysia Indonesia Australia New Zealand GCC countries Turkey Northern Africa South Africa
Key market segments covered	Nature End Use Distribution Channel
Key companies profiled	BIOLANDES SAS Tien Phuoc Co., Ltd Hoang Giang Agarwood Ltd. Dauper S.A. Katyani Exports Gritman Essential Oils Essential Oil Wizardry Biofinest USA Nusaroma Aromaaz International Kush Aroma Exports SVA Naturals
Report coverage	Market forecast Company share analysis Competition intelligence DROT analysis Market dynamics and challenges Strategic growth initiatives
Customization & pricing	Available upon request

Agarwood Essential Oil Industry Research by Category

By Nature:

• Organic
• Conventional

By End Use:

• Food and Beverage Industry
• Personal Care & Cosmetic Industry
• Pharmaceutical Industry

By Distribution Channel:

• Business to Business
• Business to Consumer
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Discounters
  • Online Retail & Others

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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