1. Global Agarwood Market Overview
Demand
- Main End-Markets:
- Middle East: UAE, Saudi Arabia, Qatar, Oman – highest demand for raw chips, oud oil, and incense; cultural and religious use drives consumption.
- East & Southeast Asia: China, Japan, South Korea – incense, luxury perfumery, and wellness products.
- Europe & US: Niche perfumery, aromatherapy, and wellness sectors; demand is smaller but premium-priced.
- Market Drivers:
- Increasing premium perfumery and luxury product consumption.
- Growth of wellness and aromatherapy markets.
- Cultural and religious significance in Middle Eastern and Asian markets.
- Scarcity of wild-harvested high-quality resin drives prices.
Supply
- Primary Suppliers:
- Southeast Asia: Indonesia, Malaysia, Vietnam, Cambodia – largest exporters of chips and oil.
- Philippines: Emerging supplier; mainly from plantations due to conservation restrictions.
- China: Domestic plantations and imports; mostly processed products for domestic consumption.
- Supply Constraints:
- Long maturation period (5–10+ years) for resin formation.
- Strict CITES regulations limit wild harvest and trade.
- Illegal trade still exists, especially from depleted forests.
Pricing Patterns
| Product Type | Global Price Range (USD/kg) | Notes |
|---|---|---|
| Chips (low-grade) | 200 – 600 | Mixed resin content, widely traded |
| Chips (high-grade) | 2,000 – 10,000 | Dark, resin-saturated; Middle East demand |
| Oud Oil (steam-distilled) | 15,000 – 50,000 | Premium grade, highly aromatic; limited supply |
| Oud Oil (solvent/extraction) | 3,000 – 15,000 | Used in perfumery blends; lower purity |
| Incense (processed) | 50 – 500 per kg | Cultural/spiritual use, moderate margin |
| Perfumery/Wellness Products | 100 – 5,000 per unit | Niche markets, high markup; depends on product format |
Notes:
- Quality matters more than volume; resin content, aroma profile, and age dictate price.
- Middle Eastern buyers pay premiums for “Malaysian-style” or “Philippine-grade” dark resin.
2. Philippine Market Overview
Demand
- Primarily for export due to high-end Middle East and Asian markets.
- Domestic consumption is small, limited to incense, perfumery, and local ceremonial use.
- Growing interest in wellness products (diffusers, aromatherapy oils).
Supply
- Native species (A. malaccensis, A. cumingiana) are rare and mostly protected.
- Plantation-grown Aquilaria supplies chips and oil.
- Resin induction programs are increasing yield predictably (fungal inoculation, mechanical wounding).
Pricing Patterns (Local Estimates, USD/kg)
| Product Type | Local Price Range | Notes |
|---|---|---|
| Chips (mixed) | 300 – 800 | Plantation-sourced; export-oriented |
| High-grade Chips | 1,500 – 5,000 | Dark, resin-rich; exported to Middle East |
| Oud Oil | 10,000 – 30,000 | Depends on extraction method and quality |
| Incense | 40 – 300 | Mainly small-scale craft and local buyers |
Observations:
- Philippine agarwood has competitive quality but lower supply than Indonesia/Malaysia.
- Export-focused plantation model is essential for economic viability.
- Certification (CITES, FSC, traceability) increases market access and price.
3. Market Trends
- Global:
- Premiumization: High-quality oud oil continues to command record prices.
- Traceability: Buyers demand sustainably sourced, legal agarwood.
- E-commerce and niche perfumery channels expanding demand.
- Philippines:
- Plantation expansion to meet Middle East demand.
- Potential for value-added products (perfumes, wellness oils) to capture higher margins.
- Carbon credits and eco-certification may provide additional revenue streams.