Published: Mar-2021 | Format: PDF | Market Research Store | Number of pages: 110 | Code: MRS - 828555
According to the report published by Market Research Store, global demand for the agarwood essential oil market was estimated at approximately USD 135 Million in 2019 and is anticipated to generate revenue of around USD 200 Million by end of 2026, growing at a CAGR of around 6% between 2020 and 2026.
Agarwood oil is an aromatic and highly valuable heartwood also known as eaglewood oil or Aloeswood oil. When the heartwood of the agarwood tree becomes afflicted with a kind of fungus, the essential oil is extracted. Following infection, the tree develops aloes or agar, a black aromatic resin. Agarwood oil comes in a variety of grades. The grade of wood used and the duration of distillation decide the consistency of the grade. In general, the higher the grade, the longer the distillation period. The trees from which agarwood oil is harvested are now grown, and the resin is currently produced by infecting the plant externally and its essential oil extracted through the process of water distillation, despite the high cost and intense scarcity in the wild. It is also used for healing purposes and helps in promoting digestion, treat insomnia, repairs damaged skin, and gives relief from other health-related issues.
The cultural and religious significance of agarwood essential oil drives the global demand for the commodity. Furthermore, the demand is expected to expand due to the growing use of agarwood essential oil in industries such as aromatherapy and personal care. Also, the increasing demand for organic and natural cosmetics is projected to open up lucrative opportunities for agarwood oil processors in the global market. The increasing use of agarwood in several industrial applications such as cosmetics, perfumes, and other modern medicines is also anticipated to surge the market growth. However, the growing gap between supply-demand of the essential oil in the real world along with the higher dependency on imported raw materials hampers the market growth. Nevertheless, the rising aromatherapy among the consumers provides lucrative growth opportunities for the market.
The global agarwood essential oil market is divided based on category, application, sales channel, and region. Based on category market is bifurcated into organic and conventional. The organic category is anticipated to hold the maximum share as consumers prefer natural products for their personal use and avoid any kind of infection by using chemical products. Based on application, the market is bifurcated into personal care, aromatherapy, pharmaceuticals, and air care. Personal care holds the maximum share owing to its pleasant aroma and its growing use in several products including soaps, perfumes, and cosmetics. The rising consumer preference for aromatherapy and the surging use of agarwood oil in aromatherapy also exhibits prominent growth opportunities for the aromatherapy segment in the coming years. By sales channel segment, the market is divided into B2B and B2C, out of which B2B holds the maximum share owing to its growing application of agarwood oil in manufacturing various types of personal care products.
The region of Asia Pacific holds the maximum share as the agarwood plant is native to the region and is been used by the regional medical practitioners for ages. Anti-stress, antioxidant, digestive, and aphrodisiac are some of the properties of agarwood essential oil that is mainly driving the market growth. The widespread plantation of agarwood trees along with the highest production of raw materials in countries such as China, India, and Vietnam propels the demand for the market. Agarwood essential oil is commonly used in aromatherapy for its aromatic influence in the Asian culture, which is thought to enhance mental focus, inner harmony, body strength and fortification, and memory and learning. As a result, the agarwood essential oil industry is projected to be affected by the rise of the global aromatherapy market. The European region also holds a sizable market share thanks to the rising demand for high-end and luxury perfumes and cosmetics from consumers across the globe.
The major players dominating the global agarwood essential oil market in terms of revenue and development are BIOLANDES SAS, Biofinest USA, Deve Herbes, Essential Oil Wizardry, Tien Phuoc Co., Ltd (Grandawood), HYSSES Pte Ltd., Hoang Giang Agarwood Ltd., WEFIVE group, Dauper S.A., Asia Plantation Capital Pte. Ltd., Katyani Exports, Albert Vieille SAS, Gritman Essential Oils, THE MJI GROUP, Agarvina Co., LTD, Nusaroma, Edens Garden, Ji'an Zhongxiang Natural Plants Co., Ltd., The Imperial Oud Co, ASSAM AROMAS, and Others. These major companies have used a variety of tactics to gain a reputable foothold in the global economy, including negotiating deals, shares, contracts, alliances, joint ventures, new product releases, collaborations, and mergers and acquisitions.
Agarwood Essential Oil
Agarwood Essential Oil