Agarwood Oil Market – Global Industry Report, 2025

Agarwood oil, often referred to as oud oil and eagleswood oil, is a resinous, fragrant and highly valuable heartwood. Agarwood oil is more popularly called as Aloeswood oil. The essential oil is derived from the heartwood of the agarwood tree when they become infected with a type of mould. Post infection, the tree produces a dark aromatic resin, called aloes or agar. There are a number of popular species but typically aquilaria malaccensis, aquilaria agallocha or aquilaria crassna are used to make the oil. Agarwood oil is native to India as well as several areas of South East Asia including Vietnam, the Philippines and Indonesia. On the backdrop of huge cost and extreme rarity in the wild, the trees from which agarwood oil is obtained are now cultivated and the resin is actually created by artificial infection and its essential oil extracted by water distillation. There are many grades of Agarwood oil.  The quality of grade is dependent on the grade of wood used and the length of distillation. Typically, the longer the distillation time the higher the grade. Owing to its manifold properties, the agarwood oil market is anticipated to expand at a healthy CAGR.

Segmentation:-

Agarwood oil market is segmented on the basis of application which includes cosmetics & personal care, incense, therapeutics, and others. Amongst these applications, therapeutics and cosmetics applications are anticipated to rise at a significant CAGR owing to the capabilities of agarwood oil for instance to alleviate many painful conditions including rheumatism and other forms of arthritis, promote more frequent urination as well as increasing the quantity of urine produced, treat a number of digestive issues, repair damaged skin cells and fight the damage caused by the free radicals, to counter epilepsy, liver complains such as cirrhosis and hepatitis, fever and chills. Furthermore the agarwood oil can also be used for dealing with delivery pain during and after birth, nausea and vomiting.

Agarwood oil market is segmented on the basis of the end use which includes retail and industrial. The retail segment is further sub-segmented as distribution channel which includes online stores, hypermarkets/supermarkets, specialized drug stores, and convenience stores.

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Global market drivers and restraints:-

The agarwood oil is gaining widespread popularity on the backdrop of its manifold advantages offered by it. Some of the properties of myrtle essential oil which are primarily driving the myrtle essential oil market are its characteristics such as anti-rheumatic, anti-stress, antimicrobial, carminative, anti-asthmatic, antioxidant, analgesic, digestive, aphrodisiac, and the like. The Ayurvedic practitioners have long used agarwood oil for its ability to provide spiritual and emotional benefits. The anti-rheumatic, anti-inflammatory and analgesic properties of agarwood oil make it a useful natural and safe treatment for those looking for effective pain relief. Agarwood oil has gained a widespread acknowledgement on the backdrop of its aphrodisiac properties associated to its ability to deal with sexual problems. Agarwood essential oil has been investigated for its anticancer properties. Agarwood oil can influence the hormones that stimulate menstruation and regulate irregular periods. Despite reflecting multiple health benefits, the agarwood oil market is also witnessing a few restraints such as its rarity and huge cost owing to the depleting resources.

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Regional Outlook:-

The South Asian countries such as India, Indonesia, Singapore, Malaysia, Sri Lanka and others lead as the top exporters as well as manufacturers of the agarwood oil market followed by North America and Europe. Most imports have been witnessed by the countries like U.S, Germany, U.K, China, Saudi Arabia, France, and others. Asia will remain as a potential market attributing to the growing economies of India and China. Furthermore, great potential in the agarwood oil market can be attributed to its diverse uses.

Major Key players:-

Some of the major key who are driving the agarwood oil market globally are Agar Aura, BMV Fragrances Private Limited, Oudh Oil, Nusaroma, THE MJI GROUP, Herbpathy and the like.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers’ or customers’ journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

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