Agarwood-Chips Market Report 2026

Agarwood-Chips Market Overview

• Agarwood-Chips market size has reached to $40.06 billion in 2025 • Expected to grow to $59.53 billion in 2030 at a compound annual growth rate (CAGR) of 8.3% • Growth Driver: Expansion Of Cosmetics And Personal Care Applications Fueling The Growth Of The Market Due To Increasing Demand For Premium Fragrance And Natural Ingredients • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Agarwood-Chips Market?

Agarwood chips are small pieces of wood cut from trees of the genus Aquilaria that have formed a dark, aromatic resin inside their heartwood. Agarwood chips are mainly used for burning as incense, releasing a rich and long-lasting fragrance.They are also used in making perfumes (especially oud oil) and in religious or cultural ceremonies. The main types of agarwood-chips include super-prime or ultra-premium chips, prime or high-grade chips, and standard-grade chips. Super-prime or ultra-premium chips refer to the highest quality agarwood chips used for premium fragrance extraction and incense production due to their rich resin content and superior aroma profile. They are categorized by nature including organic and conventional. They are distributed through direct channel and indirect channel and the various applications involved are oil production, incense and fragrance, and others.

What Is The Agarwood-Chips Market Growth Forecast?

The agarwood-chips market size is expected to see strong growth in the next few years. It will grow to $59.53 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to increasing demand for sustainable luxury fragrance ingredients, rising adoption of organic incense products, expansion of premium perfume manufacturing applications, growing investments in cultivated agarwood plantations, increasing consumer interest in exotic aromatic experiences. Major trends in the forecast period include increasing demand for premium resin rich agarwood chips in luxury incense applications, rising use of agarwood chips in traditional religious and spiritual ceremonies, growing consumer preference for natural and organic fragrance ingredients, expansion of cultivated agarwood plantation practices for sustainable supply, increasing popularity of oud based perfumes in global luxury fragrance markets.

Global Agarwood-Chips Market Segmentation

1) By Type: Super-Prime Or Ultra-Premium Chips, Prime Or High-Grade Chips, Standard-Grade Chips 2) By Nature: Organic, Conventional 3) By Distribution: Direct Channel, Indirect Channel 4) By Application: Oil Production, Incense And Fragrance, Other Applications Subsegments: 1) By Super-Prime Or Ultra Premium Chips: Wild Natural Resin Rich Chips, Hand Selected Aged Agarwood Chips, High Density Dark Resin Chips 2) By Prime Or High Grade Chips: Cultivated Resin Infused Chips, Semi Natural Agarwood Chips, Medium Resin Content Chips 3) By Standard Grade Chips: Low Resin Content Chips, Artificially Induced Agarwood Chips, Commercial Grade Agarwood Chips

What Are The Drivers Of The Agarwood-Chips Market?

The expansion of cosmetics and personal care applications is expected to propel the growth of the agarwood chips market going forward. Expansion of cosmetics and personal care applications refers to the increasing use of natural and premium ingredients in skincare, haircare, and beauty products to enhance product value and efficacy. The expansion of cosmetics and personal care applications is increasing due to rising consumer preference for organic, natural, and luxury beauty products, along with growing awareness of the benefits of plant-based ingredients. Agarwood chips are processed to extract oud oil, which is widely used as a high-value ingredient in premium perfumes, skincare formulations, and personal care products due to its distinctive fragrance and therapeutic properties. For instance, in June 2025, according to Cosmetic, Toiletry and Perfumery Association, a UK-based trade association, in 2024, the toiletries and beauty sector recorded sales of approximately $13.0 billion (£10.3 billion), reflecting a robust year-on-year growth of 8.4%. Therefore, the expansion of cosmetics and personal care applications is driving the growth of the agarwood chips market. The growth of spa, meditation, and relaxation industries is expected to propel the growth of the agarwood chips market going forward. The growth of spa, meditation, and relaxation industries refers to the increasing demand for wellness services and experiences focused on stress reduction, mental well-being, and holistic health. The growth of spa, meditation, and relaxation industries is increasing due to rising stress levels, growing awareness of mental health, and increasing consumer preference for wellness-oriented lifestyles. Agarwood chips are widely used in these industries as a key material for incense, aromatherapy, and relaxation rituals due to their calming fragrance and therapeutic properties. For instance, in April 2024, according to the International Spa Association, a US-based organization, the U.S. spa industry recorded revenues of $21.3 billion in 2023, up from $20.1 billion in 2022, reflecting a year-over-year growth of 5.7%. Therefore, the growth of spa, meditation, and relaxation industries is driving the growth of the agarwood chips market. The growth of e-commerce is expected to propel the growth of the agarwood chips market going forward. Growth of e-commerce refers to the increasing use of online platforms and digital marketplaces for purchasing goods and services, enabling wider product accessibility and convenience for consumers. The growth of e-commerce is increasing due to rising internet penetration, smartphone adoption, and changing consumer preferences toward convenient and contactless shopping experiences. Agarwood chips benefit from e-commerce platforms as they allow manufacturers and retailers to reach a global customer base, showcase premium and niche products, and offer direct-to-consumer sales channels for incense, fragrance, and wellness applications. For instance, in March 2026, according to the Census Bureau, a US-based government agency, Total e-commerce sales were estimated at $1,233.7 billion in 2025, reflecting a 5.4% year-on-year increase compared to 2024. Therefore, the growth of e-commerce is driving the growth of the agarwood chips market.

Key Players In The Global Agarwood-Chips Market

Major companies operating in the agarwood-chips market are Ajmal Perfumes, Arabian Oud, Al Haramain Perfumes, Rasasi Perfumes Industry LLC, Abdul Samad Al Qurashi, Oudh Al Anfar, Asia Plantation Capital Pte. Ltd., Fragrance Du Bois, Treedom Group, Lifa Fragrance Co. Ltd., Sadaharitha Plantations Limited, Hoang Giang Agarwood Company Limited, Nhang Thien Joint Stock Company, Agarvina Co. Ltd., Binh Nghia Agarwood Co. Ltd., Oud Du Bois, Golden Sheaf Industries Private Limited, Lao Agar International Development Co. Ltd., Thien Phu Agarwood Co. Ltd., Thai Borai Agarwood Co. Ltd., Po Luo Senko Agarwood Company Limited, Ensar Oud, Sai Export India Private Limited, Assam Aromas Private Limited, Nagaland Agarwood Private Limited, Duy Hai Agarwood Co. Ltd., Green Agro Agarwood Products Co. Ltd., Grandawood Agarwood Australia Pty Ltd., Myanma Treasure Co-operative Limited

Regional Outlook

North America was the largest region in the agarwood-chips market in 2025. Asia-Pacific is expected to be the fastest-growing region during the forecast period.The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Agarwood-Chips Market?

The agarwood-chips market consists of sales of raw agarwood chips, processed agarwood chips, graded chips and powder or small chip fragments. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Agarwood-Chips Market Report 2026?

The agarwood-chips market research report is one of a series of new reports from The Business Research Company that provides agarwood-chips market statistics, including agarwood-chips industry global market size, regional shares, competitors with a agarwood-chips market share, detailed agarwood-chips market segments, market trends and opportunities, and any further data you may need to thrive in the agarwood-chips industry. This agarwood-chips market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.