Agarwood Essential Oil Market

Growing trend for aromatherapy is driving the market growth

One of the main drivers of market expansion is the increased demand for aromatherapy. An alternative medical practice known as aromatherapy can increase energy levels, speed healing, relieve headaches, improve digestion and circulation, induce sleep, enhance cognitive function, lessen anxiety, and lessen sadness. Worldwide interest in aromatherapy is rising, and several companies are developing essential oils specifically for its use. For instance, one example is the Dear Mom line of limited-edition essential oils from Plant Therapy Essential Oils. The product is designed to help mothers unwind and relieve stress and worry.

The manufacturer said the new product would produce a pleasant, sweet perfume and encourage peace and relaxation. As a result, throughout the forecast period, the agarwood essential oil market CAGR would benefit from the rising popularity of aromatherapy among consumers.

Furthermore, agarwood essential oil use has increased as people become more aware of the benefits of organic essential oils for the skin and hair. Due to expanding consumer disposable income, people in developing Asian Pacific countries like South Korea, China, and India can now buy price-sensitive goods like agarwood oil. Agarwood essential oil is more than simply an aromatic, sweet oil used in perfumery; it also has many extraordinary medical benefits, including easing both physical and mental symptoms of sleeplessness, migraine, stress, burns, skin conditions, insect bites, infections, and psychological strain.

These qualities have led to an increase in the demand for agarwood essential oil. The demand for genuine oil products among consumers is rising today. This has led to a sharp increase in demand for genuine oil products. Manufacturers and producers of fragrance and incense products are increasing their range in response to consumer demand and market research. Because the market for essential oils offers high-profit margins, more producers are entering it. In the upcoming years, various manufacturers plan to release agarwood oil-based goods.

Additionally, it is anticipated that rivals would market their goods using natural labeling to draw in current clients and increase the number of new ones. Thus, driving the agarwood essential oil industry revenue.

The therapeutic applications of agarwood essential oil contribute significantly to the Global Agarwood Essential Oil Market Industry. Known for its anti-inflammatory, anti-anxiety, and sedative properties, agarwood oil is increasingly utilized in traditional medicine and holistic therapies. The growing acceptance of alternative medicine, particularly in regions such as Asia-Pacific, enhances its market potential. As consumers seek natural remedies for stress relief and overall well-being, the demand for agarwood essential oil is expected to rise, potentially leading to a compound annual growth rate of 6.38% from 2025 to 2035.

The expansion of the aromatherapy sector plays a crucial role in driving the Global Agarwood Essential Oil Market Industry. As more individuals recognize the benefits of aromatherapy for mental and emotional health, the demand for essential oils, including agarwood, is likely to surge. The increasing number of wellness centers and spas that incorporate aromatherapy into their services further supports this trend. This growing acceptance of aromatherapy as a legitimate wellness practice suggests a promising future for agarwood essential oil, aligning with the projected market growth to 0.52 USD Billion by 2035.

Market growth projections for the Global Agarwood Essential Oil Market Industry indicate a promising future. With an estimated value of 0.27 USD Billion in 2024, the market is anticipated to expand to 0.52 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 6.38% from 2025 to 2035, reflecting increasing consumer interest in natural products and wellness solutions. The market's expansion is likely to be driven by various factors, including rising demand for aromatherapy, therapeutic applications, and cultural significance, positioning agarwood essential oil as a key player in the essential oil market.

The Global Agarwood Essential Oil Market Industry experiences a notable increase in demand for natural and organic products. Consumers are increasingly inclined towards essential oils derived from natural sources, driven by a growing awareness of health and wellness. This trend is reflected in the market's projected value of 0.27 USD Billion in 2024, with expectations to reach 0.52 USD Billion by 2035. The shift towards natural alternatives in personal care and aromatherapy sectors is likely to bolster the market further, suggesting a robust growth trajectory in the coming years.

Sustainability and ethical sourcing are increasingly becoming focal points in the Global Agarwood Essential Oil Market Industry. As environmental concerns rise, consumers are more inclined to support brands that prioritize sustainable practices. The cultivation of agarwood, particularly through responsible harvesting methods, is gaining traction. This shift towards sustainability not only appeals to eco-conscious consumers but also ensures the long-term viability of agarwood resources. The emphasis on ethical sourcing is likely to enhance brand loyalty and market share, contributing to the overall growth of the agarwood essential oil market.

Cultural significance and traditional uses of agarwood essential oil are pivotal in shaping the Global Agarwood Essential Oil Market Industry. In many cultures, agarwood is revered for its spiritual and medicinal properties, often utilized in religious ceremonies and traditional healing practices. This cultural heritage fosters a sustained demand for agarwood essential oil, particularly in regions where these traditions are prevalent. The enduring popularity of agarwood in incense production and perfumery further enhances its market presence, indicating a stable growth trajectory as cultural practices continue to influence consumer preferences.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American agarwood essential oil industry area will dominate this market. In established regions like North America, the demand for organic agarwood essential oil is rising sharply. The market for agarwood essential oil is experiencing growth and profitability among companies with large production capacities and R&D capabilities. Reputable firms aim to increase their regional visibility and improve their production capabilities, which will increase their market revenue share.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: AGARWOOD ESSENTIAL OIL MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe agarwood essential oil market accounts for the second-largest market share due to a variety of health advantages and several uses in a variety of industries, including personal care, cosmetics, and pharmaceuticals. Leading European markets for the selling of agarwood essential oils include Germany, the UK, France, and Spain. New cosmetics are being developed by cosmetic manufacturers that include agarwood essential oils. The market for agarwood essential oils is expanding in Europe in part due to the region's rising demand for aromatherapy products.

Further, the German market for agarwood essential oil held the largest market share, and the UK agarwood essential oil industry was the fastest growing market in the European region

The Asia-Pacific Agarwood essential oil Market is expected to grow at the fastest CAGR from 2023 to 2032 because there are a growing number of producers of agarwood essential oils to meet the always growing demand. Due to the growing urban population and rising disposable incomes, demand is quite strong. Moreover, China’s agarwood essential oil industry  held the largest market share, and the Indian market of agarwood essential oil was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the agarwood essential oil market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, agarwood essential oil industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the agarwood essential oil industry to benefit clients and increase the market sector. In recent years, the agarwood essential oil industry has offered some of the most significant advantages to market.

Major players in the agarwood essential oil market attempting to increase market demand by investing in research and development operations include Agro Products, ASSAM AROMAS, Grandawood, Biolandes, Deve Herbes, Essential Oil Wizardry, Katyani Exports, Jiâ an Zhongxiang Natural Plants Co., Ltd., Biofinest USA, Nusaroma, Dauper SA, Hoang Giang Agarwood Ltd., HYSSES Pte Ltd., Living Libations, Agarwood Oil Inc., Gritman Essential Oils, Pachara Innovation CO., LTD, The Imperial Oud Co, Edens Garden, and Essential Oils Company.

The Imperial Oud Company Limited, a functioning business with its registered office in Bradford, West Yorkshire, was established on September 30, 2016. The primary objective of Imperial Oud Co. is to completely satisfy its clients by offering them premium agarwood oil. The company has obtained numerous reputable international certificates from ISO, FDA, and other organisations for the efficacy of its products to attain the necessary quality in the production process.

The Essential Oils Company manufactures and sells essential oils, concretes, natural substances, solvent extracts, attars, and products crafted from Indian agarwood and sandalwood. In addition, it continues to expand its manufacturing area to meet the growing demand for wholesale pure natural oils. Its objective is to satisfy consumer needs and wants. Quality is always preserved as the most important factor and is vigorously upheld throughout production.