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The agarwood essential oil market size is forecast to increase by USD 1.13 billion at a CAGR of 6.78% between 2023 and 2028.
The agarwood essential oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The cosmetics and personal care segment is estimated to witness significant growth during the forecast period.
Agarwood essential oil, derived from the Agarwood tree, is a valuable commodity in the global market due to its unique aroma and therapeutic properties. The aromatic oil is produced through steam distillation or solvent extraction from the resin-rich heartwood. Agarwood farming and plantation have gained traction as sustainable harvesting practices are adopted to ensure the long-term availability of this precious resource. Mass spectrometry and HPLC analysis are crucial techniques used to determine the oil's quality and composition. Agarwood oil's specific gravity and refractive index are essential parameters for assessing its authenticity. Agarwood resin, wood chips, and shavings are also used in the production of incense oil and aromatic blends.
Agarwood essential oil's therapeutic benefits make it a popular choice in aromatherapy and alternative medicine. It is known for its stress-relieving properties and mood enhancement, contributing to its use in natural remedies for sleep improvement and relaxation. The oil's aroma profile is complex and harmonious, making it an essential ingredient in fragrance formulation and essential oil blending. The cosmetics and personal care segment is the largest market for agarwood essential oil, driven by increasing health and skincare awareness among consumers. Agarwood oil's benefits for skin and hair care have led to its inclusion in various products, from luxury skincare lines to everyday cosmetics.
For instance, Khalm Skincare, a US-based brand, launched in September 2020, specializing in oudh-infused products through direct-to-consumer e-commerce. International trade plays a significant role in the agarwood market, with countries like India, Indonesia, and Bangladesh being the major producers. However, the agarwood trade is subject to challenges, including supply chain complexities, quality control, and the risk of synthetic and artificial agarwood. Sustainable harvesting practices and genetic modification of aquilaria cultivars are being explored to address these challenges and ensure a steady supply of high-quality agarwood essential oil.
The Cosmetics and personal care segment was valued at USD 794.00 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 39% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Agarwood essential oils are experiencing significant demand in Europe due to their various health benefits and versatile applications in industries such as therapeutics, cosmetics, and personal care. Germany, the UK, France, and Spain are key markets for the sale of these essential oils. In the cosmetics sector, new product innovations incorporate agarwood essential oils as an ingredient. Europe's increasing preference for aromatherapy as an alternative medicine contributes to the market's expansion, particularly in countries like France, Germany, the UK, Austria, and Switzerland. Mass spectrometry and HPLC analysis are essential tools for ensuring oil quality, while sustainable harvesting practices and fair trade initiatives uphold ethical production.
Agarwood farming and plantations focus on cultivating specific agarwood varieties, such as the Aquilaria cultivar, to meet the growing demand. Steam distillation is the primary method for extracting the essential oil from the agarwood resin. Aromatherapy applications include stress relief, sleep improvement, and mood enhancement. Agarwood essential oils are also used in perfume and fragrance formulations, incense, and natural remedies. Wood chips, shavings, and resin are alternative forms of agarwood used for various purposes. The market's evolution includes research into synthetic agarwood, perfume oils, and artificial agarwood through tissue culture and solvent extraction. The supply chain involves various stakeholders, from agarwood farmers and plantation owners to traders, distributors, and end-users.
Quality control measures, such as specific gravity and refractive index assessments, ensure the authenticity and consistency of agarwood essential oils. The international trade of agarwood and its products is subject to regulations and certifications to maintain ethical and sustainable practices.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Agarwood Essential Oil Market thrives with organic agarwood essential oil and agarwood oil for perfumery. Sustainable agarwood oil production drives agarwood oil market trends, while premium agarwood oil brands cater to luxury markets. Agarwood oil for aromatherapy and agarwood oil for cosmetics boost demand, supported by agarwood oil supply chain. Eco-friendly agarwood oil and agarwood oil for wellness align with consumer preferences. The agarwood oil market forecast emphasizes agarwood oil for luxury skincare and sustainable agarwood harvesting. Agarwood oil for APAC markets grows, with agarwood oil for meditation and organic oud oil for retail gaining traction. Agarwood oil for spa industry and agarwood oil for high-end perfumes enhance appeal, while agarwood oil sourcing trends ensure high-quality agarwood oil exports through 2028.
The agarwood essential oil market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the agarwood essential oil market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, agarwood essential oil market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The agarwood oil market is experiencing significant activity and trends, driven by escalating demand and investment opportunities. Agarwood oil distributors and suppliers are capitalizing on its numerous benefits, which include use in perfumes, natural and organic cosmetic, cosmetics, and traditional medicines. Agarwood oil production faces challenges due to the scarcity of the raw material and the need for sustainable practices. Agarwood oil standards and regulations are crucial to ensure authenticity and quality, while innovation and technology are pivotal to increasing supply. Agarwood oil prices remain volatile, influenced by market dynamics and supply-demand equilibrium. The agarwood oil industry is witnessing development in various applications, from luxury fragrances to pharmaceuticals.
Retailers and manufacturers are exploring new avenues for agarwood oil products, further fueling market growth. Certification schemes and sustainability initiatives are essential to mitigate the environmental impact of agarwood oil production and meet consumer expectations. The future of the agarwood oil market depends on a balance between supply and demand, innovation, and responsible production.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Agarwood Essential Oil Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 1128.9 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Key countries |
US, China, Germany, Japan, UK, Australia, India, France, Brazil, UAE, Rest of World (ROW), Saudi Arabia, France, South Korea, Mexico, Italy, and Spain |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Market Segmentation by End-User
9 Market Segmentation by Distribution Channel
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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