Agarwood knowledge

Agarwood, also known as oud, is a highly valued resinous wood primarily produced in Southeast Asia. The top exporters of agarwood include:

1. Vietnam: A leading exporter, supplying significant quantities of agarwood globally.

2. Indonesia: Another major exporter, contributing substantially to the international agarwood market.

3. India: Known for its agarwood production, India plays a significant role in the global export market.

4. Malaysia: A key player in the agarwood trade, exporting various agarwood products.

5. Thailand: Engages in the export of agarwood, contributing to the global supply.

6. Bangladesh: Participates in the international agarwood market as an exporter.

7. Lao People's Democratic Republic: Involved in the export of agarwood products.

8. Papua New Guinea: Exports agarwood, contributing to the global market.

9. United Arab Emirates: While primarily an importer, it also re-exports agarwood products.

10. Saudi Arabia: Similar to the UAE, it imports and re-exports agarwood, playing a role in the global trade network.

Vietnam holds a significant position in the global agarwood market, both as a leading exporter and importer.

Export Activities:

• Volume and Growth: Vietnam's agarwood exports have shown substantial growth in recent years. In 2021, the country exported over 8,000 tons of agarwood, a notable increase from 4,400 tons in 2019 and 2,800 tons in 2018. 

• Major Markets: The primary destinations for Vietnamese agarwood are Gulf countries, including Saudi Arabia, the United Arab Emirates, and Kuwait, where agarwood is highly valued for perfume production and religious ceremonies. 

• Export Statistics (Feb 2023 - Jan 2024): During this period, Vietnam exported 5,861 shipments of agarwood, marking a 45% growth compared to the previous twelve months. In January 2024 alone, there were 713 export shipments, a 130% increase year-on-year. The top importers were India, Malaysia, and China, collectively accounting for 65% of Vietnam's agarwood exports. 

Import Activities:

• Import Volume: Between February 2023 and January 2024, Vietnam imported 508 shipments of agarwood from 22 countries, with Vietnam, China, and Laos being the top suppliers. In January 2024, Vietnam imported 57 agarwood shipments, indicating a 533% year-on-year growth. 

Regulatory Environment:

The Vietnamese government has implemented measures to regulate agarwood harvesting and trade to ensure sustainability. In 2020, a decree was issued requiring exporters to obtain permits and setting annual harvesting limits. These regulations aim to combat over-harvesting and illegal trade, promoting sustainable practices within the industry. 

Industry Challenges:

Despite the lucrative nature of the agarwood trade, challenges persist, including over-harvesting and illegal activities that threaten the sustainability of agarwood resources. The government's regulatory efforts are crucial in addressing these issues to ensure the long-term viability of the industry. 

Conclusion:

Vietnam's active participation in the global agarwood market underscores its importance as both an exporter and importer. While the industry experiences significant growth, adherence to sustainable practices and regulatory compliance remain essential to maintain the ecological balance and economic benefits associated with agarwood trade.

Vietnam holds a significant position in the global agarwood market, both as a leading exporter and importer.

Export Activities:

• Volume and Growth: Vietnam's agarwood exports have shown substantial growth in recent years. In 2021, the country exported over 8,000 tons of agarwood, a notable increase from 4,400 tons in 2019 and 2,800 tons in 2018. 

• Major Markets: The primary destinations for Vietnamese agarwood are Gulf countries, including Saudi Arabia, the United Arab Emirates, and Kuwait, where agarwood is highly valued for perfume production and religious ceremonies. 

• Export Statistics (Feb 2023 - Jan 2024): During this period, Vietnam exported 5,861 shipments of agarwood, marking a 45% growth compared to the previous twelve months. In January 2024 alone, there were 713 export shipments, a 130% increase year-on-year. The top importers were India, Malaysia, and China, collectively accounting for 65% of Vietnam's agarwood exports. 

Import Activities:

• Import Volume: Between February 2023 and January 2024, Vietnam imported 508 shipments of agarwood from 22 countries, with Vietnam, China, and Laos being the top suppliers. In January 2024, Vietnam imported 57 agarwood shipments, indicating a 533% year-on-year growth. 

Regulatory Environment:

The Vietnamese government has implemented measures to regulate agarwood harvesting and trade to ensure sustainability. In 2020, a decree was issued requiring exporters to obtain permits and setting annual harvesting limits. These regulations aim to combat over-harvesting and illegal trade, promoting sustainable practices within the industry. 

Industry Challenges:

Despite the lucrative nature of the agarwood trade, challenges persist, including over-harvesting and illegal activities that threaten the sustainability of agarwood resources. The government's regulatory efforts are crucial in addressing these issues to ensure the long-term viability of the industry. 

Conclusion:

Vietnam's active participation in the global agarwood market underscores its importance as both an exporter and importer. While the industry experiences significant growth, adherence to sustainable practices and regulatory compliance remain essential to maintain the ecological balance and economic benefits associated with agarwood trade.

Agarwoods Market Report 2024 (Global Edition)

The global Agarwood market size will be USD 145.2 million in 2024. The increasing demand for agarwood in traditional medicine and wellness products is expected to boost sales to USD 204.31 million by 2031, with a Compound Annual Growth Rate (CAGR) of 5.00% from the year 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 58.08 million in the year 2024 and will rise at the compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

Europe accounted for a market share of over 30% of the global revenue with a market size of USD 43.56 million.

Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 33.40 million in the year 2024 and will rise at the compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.

Latin America had a market share of more than 5% of the global revenue with a market size of USD 7.26 million in 2024 and will rise at a compound annual growth rate (CAGR) of 4.4% from the year 2024 to 2031.

Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2.90 million in 2024 and will rise at a compound annual growth rate (CAGR) of 4.7% from the year 2024 to 2031.

The organic category is the fastest growing segment of the Agarwood industry

Key Trends & Insights

As of 2024, the global agarwood trade is influenced by several factors, including environmental regulations, economic shifts, and growing demand for luxury products like oud perfumes. Below is an overview of the key trends and activities in the import and export of agarwood worldwide:

The major exporting countries of agarwood (oud) are typically located in Southeast Asia and parts of the Middle East. Some of the top exporters in 2024 include:

• Cambodia: Cambodia remains a significant supplier of wild agarwood, although its exports have been limited due to increasing regulations and conservation efforts.
• India: India is one of the largest producers and exporters of agarwood, especially in the form of essential oils and raw wood. It is also known for its oud perfume market.
• Indonesia: Indonesia is one of the largest producers of cultivated agarwood. The country has been working on sustainable cultivation methods to meet growing global demand.
• Malaysia: Malaysia also exports agarwood, but the industry faces challenges with overexploitation and illegal trade, which has led to more stringent regulations.
• Vietnam: Vietnam exports agarwood products, particularly in the form of incense and essential oils, to countries in the Middle East, Europe, and Asia.

Other countries such as Thailand, Laos, and Myanmar also engage in the export of agarwood but to a lesser extent.

The largest consumers of agarwood and its products are typically in the Middle East, Asia, and Europe. Key importing countries include:

• United Arab Emirates (UAE): The UAE is one of the largest importers of agarwood, primarily due to the luxury demand for oud perfumes and incense. Dubai, in particular, is a global hub for the trade of oud products.
• Saudi Arabia: Similar to the UAE, Saudi Arabia imports a significant amount of agarwood for use in religious ceremonies, perfumes, and traditional practices.
• India: While India is a major exporter of agarwood, it is also one of the largest consumers due to its widespread use in religious rituals and traditional medicines.
• China: China imports agarwood for use in incense, traditional medicine, and increasingly for luxury goods like perfumes.
• Japan and South Korea: Both countries import agarwood for incense and traditional ceremonial uses. There is also an emerging interest in agarwood-based perfumes and wellness products.
• European Union (EU): The EU is a growing market for agarwood-based products, especially for luxury perfumes. France, in particular, is a major importer of oud for the perfume industry.
• United States: The U.S. is also a growing market for agarwood, particularly within the niche luxury perfume and wellness sectors.

In response to the over-exploitation of agarwood trees, many countries have taken steps to regulate the trade and encourage sustainable cultivation. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) lists several species of agarwood-producing trees under its protection, which impacts international trade.

• Regulations in Southeast Asia: Countries like Malaysia, Indonesia, and Vietnam have been introducing sustainable harvesting techniques and encouraging the cultivation of agarwood trees to reduce pressure on wild populations.
• Cultivation vs. Wild Harvesting: There's a shift toward cultivating agarwood instead of relying on wild-harvested wood. This shift is also supported by technology, with companies in countries like India and Indonesia employing inoculation methods to stimulate the production of agarwood in cultivated trees.

The demand for agarwood, especially in the form of oud perfume, is growing, particularly in emerging markets. The luxury segment is expected to grow in 2024, driven by:

• Middle East: The demand for high-quality oud perfumes in the Middle East remains strong, and countries like the UAE, Saudi Arabia, and Qatar are key markets for luxury oud.
• Asia: In addition to its religious and ceremonial uses, agarwood has a growing presence in the luxury goods market in China, India, and Southeast Asia.
• Western Markets: The demand for agarwood-based products, especially high-end perfumes, is growing in Western markets like the U.S. and Europe, as the popularity of niche and luxury fragrances rises.

Despite the growing demand for agarwood, the industry faces several challenges in 2024:

• Illegal Trade: The illegal trade in wild-harvested agarwood continues to be a significant issue. Efforts to curb illegal logging and trafficking are ongoing, but it remains a challenge in countries with weak enforcement.
• Environmental Impact: Overharvesting and deforestation have led to a decline in the number of agarwood-producing trees in the wild. This threatens the long-term sustainability of the trade.
• Price Volatility: Agarwood prices are highly volatile due to its rarity and the difficulties associated with its cultivation. This creates risks for both exporters and importers, especially in an uncertain global economic environment.
• Regulation Compliance: With CITES restrictions and national regulations, international trade can be complex, and non-compliance can result in penalties or restrictions.

• Growth in Cultivated Agarwood: With increasing demand and regulations, cultivated agarwood will likely dominate the market in 2024. Countries like Indonesia and India are expected to lead the way in cultivating agarwood sustainably.
• Increased Regulation: Both producing and consuming countries are likely to enforce stricter regulations on the agarwood trade, particularly concerning sustainable harvesting and compliance with CITES.
• Expansion of Market: The luxury fragrance and wellness sectors will continue to drive demand in both traditional markets (Middle East, Asia) and emerging markets (Europe, U.S.).

Conclusion

The agarwood industry in 2024 is characterized by both sustained demand and regulatory challenges. Exporting nations are focusing more on sustainable practices to meet the growing global demand for agarwood, particularly for use in perfumes and luxury goods. At the same time, the illegal trade and the environmental impact of harvesting remain significant concerns. The future of the industry will depend on the balance between conservation, cultivation, and luxury consumption trends.

Top Companies Market Share in Agarwoods Industry

• Hoang Giang Agarwood Ltd
• Lao Agar International Development
• Asia Plantation Capital Pte Ltd.
• K.A.B. Industries
• Arista Agarvina Co. Ltd.
• Green Agro Sadaharitha Plantations Limited
• ASSAM AROMAS
• BINH NGHIA AGARWOOD CO. Ltd.
• Myanmar Treasure Co op. Ltd.
• Sai Export India
• THE MJI GROUP
• NHANG THIEN JOINT STOCK COMPANY
• Homegrown Concept Sdn Bhd.

https://vietvitality.com/

https://www.facebook.com/SSVAgarwood/

https://www.youtube.com/@Vietnamagarwoodandherbal