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The Agarwood Essential Oil Market is projected to increase by USD 1,075.28 million from 2022 to 2027. The market is estimated to grow at a CAGR of 6.86% between 2022 and 2027. In 2017 the market size was valued at USD 1,075.28 million.
The expansion in retail space across the globe is a key factor driving the market growth. The most common distribution formats of agarwood essential oils are supermarkets and hypermarkets, convenience stores, discount stores, and online portals. The retail chain sales of these products have been increasing over the past few years. The sale of essential oils through supermarkets and hypermarkets is rising as consumers are increasingly preferring agarwood essential oil products for health benefits such as moisturizing and skin softening, reduction of microbial infections, and sun protection.
This market is segmented by application into cosmetics and personal care, incense, therapeutics, and others. The cosmetics and personal care segment will contribute 40% to the growth of the market. The increasing health and skincare awareness among consumers has enhanced the need for agarwood essential oils for cosmetics and personal care applications. Agarwood is considered 'liquid gold' owing to its high cost. Moreover, only certain specific and old Agarwood trees contain this resin, which makes agarwood among the most luxurious cosmetic extracts in the world. The increasing applications of agarwood essential oil for skin and hair care are growing significantly, owing to its benefits.
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The rising demand for aromatherapy is notably driving the market growth, although factors such as the increasing availability of counterfeit products may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
Trend
The rising demand for aromatherapy is a major factor supporting the market growth. Aromatherapy is an alternative medicinal practice that enhances energy levels, hastens the healing process, gets rid of headaches, improves digestion and circulation, induces sleep, boosts cognitive function, reduces anxiety, and eases depression. The demand for aromatherapy is increasing globally, and various players are coming up with essential oils exclusively for aromatherapy practices.
For instance, Plant Therapy Essential Oils' new line of limited-edition essential oil is set under the brand name Dear Mom. The product is aimed at promoting relaxation and reducing worry and tension among mothers. The company claims that the new product will create a smooth, sweet aroma and promote calmness and relaxation. Thus, the growing popularity of aromatherapy among consumers will positively influence the global agarwood essential oil market during the forecast period.
Challenge
The increasing availability of counterfeit products will be a major challenge for market share growth. Agarwood essential oils are extracted from plants through the distillation process, and they exhibit a characteristic fragrance and properties of the plants they are extracted from. However, counterfeit products contain cheap seed oils and do not have any properties of essential oils. Some counterfeit products are mixed with synthetics to make them resemble the scent of the plant.
As agarwood essential oil is a highly-priced oil, owing to which it becomes a prime target for adulteration and results in the formation of counterfeit products. Such counterfeit products damage the brand /image of leading essential oil brands. Thus, the increasing prevalence of counterfeit products can hamper the growth of the global agarwood essential oil market during the forecast period.
Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Agarwood Essential Oil Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The agarwood essential oil market segmentation by type consists of natural agarwood essential oil and organic agarwood essential oil. The increasing use of natural agarwood essential oil in different applications such as cosmetics and personal care, medication, therapeutics, and household cleaning will augment the demand for natural agarwood essential oil, which in turn will propel the growth of the global agarwood essential oil market during the forecast period.
The agarwood essential oil market segmentation by application consists of cosmetics and personal care, incense, therapeutics, and others. The market share growth of the cosmetics and personal segment will be significant during the forecast period. The cosmetics and personal care segment constitute the largest market share of the global agarwood oil market. The increasing health and skincare awareness among consumers has enhanced the need for agarwood essential oils for cosmetics and personal care applications. Agarwood is considered 'liquid gold' owing to its high cost. Moreover, only certain specific and old Agarwood trees contain this resin, which makes agarwood among the most luxurious cosmetic extracts in the world.
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The cosmetics and personal segment were valued at USD 719.92 million in 2017 and continued to grow until 2021. The increasing applications of agarwood essential oil for skin and hair care are growing significantly, owing to its benefits. Such benefits have increased the adoption of agarwood essential oil in the cosmetic and personal use segment. Thus, the growing demand for updated and enhanced skincare products will accelerate the cosmetic and personal care segment of the global agarwood essential oil market during the forecast period.
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Europe is estimated to contribute 36% 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.
Europe is observing high demand for agarwood essential oils due to various health benefits and multiple applications across multiple industries, such as therapeutics, cosmetics, and personal care. Germany, the UK, France, and Spain are some of the leading markets for the sales of agarwood essential oils in Europe. Cosmetic producers are coming up with new cosmetic products that contain agarwood essential oils as an ingredient. The growing demand for aromatherapy products in Europe is also contributing to the growth of the agarwood essential oil market in Europe.
In Europe, the premium cosmetics sector witnessed a shift as many consumers opted for at-home skin treatment solutions following COVID-19. However, the increase in the launch of new products containing agarwood essential oils as an ingredient will drive the growth of the essential oils market in Europe during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Agarwood Essential Oil Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.86% |
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Market growth 2023-2027 |
USD 1,075.28 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.34 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 36% |
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Key countries |
US, Canada, Japan, Germany, and The Netherlands |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Biofinest, Biolandes SAS, Deve Herbes, Edens Garden Inc., Essential Oil Wizardry, Flowers Shining Everywhere Inc., Grandawood, Gritman Corp., Hoang Giang Agarwood Ltd., HYSSES Pte Ltd., JiAn ZhongXiang Natural Plants Co. Ltd., Katyani Exports, Mangalam Agro, Maruti Natural Fragrances, Nusaroma, Oud and Musk, Shiv Sales Corporation, Thai Borai Agarwood Co. Ltd., Tram Huong Viet, and Treedom Oud |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 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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