Enjoy complimentary customisation on priority with our Enterprise License!
The Agarwood Essential Oil Market is projected to increase by USD 1.13 billion, at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. The expanding retail sector, particularly in the natural and health food industries, is creating increased demand for this valuable essential oil. Additionally, the recognized health benefits of agarwood essential oils, including their ability to reduce stress, improve respiratory health, and promote relaxation, are driving consumer interest. Furthermore, the increasing use of agarwood essential oil in home care products, such as soaps, perfumes, and cosmetics, is broadening its market reach and fueling growth. Overall, these trends are expected to continue, making the market an attractive investment opportunity for businesses in the natural health and wellness sector.
To get additional information about the market, Buy Report
The market is thriving within the cosmetics and personal care sector, renowned for its use in alternative medicine and organic essential oils. Derived from the heartwood of agarwood trees through hydrophobic liquid extraction and steam distillation processes, agarwood oil offers numerous skin and hair benefits. Its aromatic profile, featuring notes of wood, bark, and complex aroma compounds like sandalwood, rose, jasmine, carnation, and geranium, makes it popular in fragrance and incense products. Known for preventive healthcare properties, agarwood oil is also studied for potential benefits against cancer cells, inflammation, and nerve-related issues, acting as an antidepressant. With high demand for natural remedies and aromatic essences like bergamot and citrus essential oils, the market for agarwood oil continues to expand globally, driven by its therapeutic applications and unique fragrance appeal.
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.
Moreover, the sale of essential oils through supermarket 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. Hence, such factors are driving the market during the forecast period.
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 market during the forecast period.
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 market during the forecast period.
The report includes the adoption lifecycle of the market research and growth, 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 market growth and forecasting strategies.
Customer Landscape
Companies 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 20 market companies, 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 market share growth of the cosmetics and personal segment will be significant during the forecast period. 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.
For a detailed summary of the market segments Buy Report
The cosmetics and personal segment were valued at USD 794 million in 2018. 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 market during the forecast period.
For further insights about regional markets, Request a PDF Sample now!
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 market 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 market in Europe. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is expanding across specialty drug stores, supermarkets, and e commerce platforms, catering to urban populations seeking health advantages. Produced through a water distillation process and steam distillation process, agarwood oil is integral to the aromatherapy industry, renowned for its healing properties validated by medical science. The natural agarwood essential oil segment is pivotal in the personal care and cosmetic industry, attracting interest from local and regional players adhering to FDA approved quality control standards. Known for its therapeutic benefits on nerves, agarwood oil blends well with bergamot oil, citrus essential oil, and peppermint oil, enhancing its aromatic profile and applications in wellness products. As demand grows for natural remedies, agarwood oil continues to gain popularity for its soothing effects and contribution to holistic health practices globally.
In addition, the market has diversified its distribution channels, reaching consumers through supermarkets and e-commerce platforms, particularly appealing to the urban population. Produced via water and steam distillation processes, agarwood oil is renowned for its rich aroma and therapeutic benefits, making it a staple in aromatherapy and personal care products. Oud oil, derived from agarwood, is highly sought after for its deep, woody scent, while bergamot, citrus, and peppermint oils complement its fragrance profile, enhancing its versatility in wellness applications. As consumers prioritize natural and aromatic solutions, agarwood oil continues to gain traction for its calming effects and potential health benefits, positioning itself as a preferred choice in the growing market and holistic health products.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
165 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
|
Market growth 2024-2028 |
USD 1.13 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
6.23 |
|
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
Europe at 39% |
|
Key countries |
US, Germany, The Netherlands, Canada, and Japan |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Biofinest, Biolandes SAS, Deve Herbes, Edens Garden, 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 |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
