Agarwood knowledge

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Aquilaria is a tree native to tropical regions, especially in Southeast Asian countries such as India, Vietnam, Thailand, Malaysia and Indonesia. Due to its unique aroma and scarcity, agarwood has become an important material for culture, religion and trade since ancient times. Its historical development can be traced back thousands of years. The following are several key stages in the development of agarwood:

1. Ancient Civilization Period:

The history of agarwood can be traced back to thousands of years BC, with the earliest records appearing in ancient India and China. Agarwood, as a spice and medicinal material, was used in religious ceremonies, medicine, and for the enjoyment of the aristocracy.

China: Agarwood has a profound influence on ancient Chinese culture, especially in Taoist and Buddhist rituals. Agarwood is used to purify the air, ward off evil spirits, and is presented to the emperor as a tribute. During the Tang Dynasty, agarwood was particularly widely used and became a luxury item for the Chinese royal family and upper class.

India: Agarwood is mentioned in the ancient Indian Vedas and Buddhist scriptures. The wood and fragrance of agarwood are used in religious ceremonies to worship gods and purify the environment.

2. Medieval period:

The use of agarwood gradually expanded into the global trade system. With the opening of the Silk Road, agarwood became an important trade item between the Middle East, South Asia, Southeast Asia and China.

Arab World: Agarwood was introduced to Arabia through the Maritime Silk Road and became a precious spice for nobles and religious ceremonies. Agarwood is also often mentioned in literary works such as "One Thousand and One Nights".

Southeast Asia and the Indian Ocean: During this period, the main production area of ​​agarwood was in the tropical rainforests of Southeast Asia. The local indigenous people used the wood and spices of the agarwood tree for trade, and the scarcity of agarwood caused its price to gradually rise.

3. Modern times:

In the 19th and 20th centuries, the demand for agarwood continued to increase. Especially in the use of spices, perfumes, religious items and traditional medicine, agarwood has become a high-value commodity.

Perfumes and spices: The aroma of agarwood has become a key ingredient in high-end perfumes and spices. In Europe and the Middle East, agarwood is used to make luxury perfumes and has become a symbol of nobility and high society.

Chinese medicinal materials: Agarwood is used as a medicinal material in traditional Chinese medicine, mainly for harmonizing qi and blood, calming the mind and calming the mind. It is believed to have sedative and anti-inflammatory effects.

4. Modern protection and sustainable development:

In the 21st century, the number of agarwood trees has dropped sharply due to the destruction of the natural growth environment of agarwood trees and over-logging. In order to protect this precious resource, countries have begun to take measures for protection and sustainable planting.

International trade and protection: The trade of agarwood is strictly regulated by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Many sources of agarwood have taken protective measures to prohibit excessive logging.

Artificial planting and cultivation: In order to meet market demand and protect wild resources, many countries have begun to explore the artificial planting and cultivation technology of agarwood. Through artificial cultivation and the technology of inducing the lignification process of agarwood, the commercial production of agarwood has become possible.

5. Modern uses of agarwood:

Today, agarwood is still widely used around the world:

Incense and incense: Agarwood is still the core ingredient of high-end incense, and many high-end perfumes and incense products use agarwood to increase the layering and persistence of the fragrance.

Medicinal value: In modern herbal medicine, agarwood continues to be used to treat a variety of diseases, especially in traditional medicine in Southeast Asia and China.

Culture and religion: Agarwood continues to play an important role in religions such as Buddhism and Taoism, and has become a common material for temple offerings and incense burning.

Summary: As a precious natural resource, agarwood has a history that spans across multiple civilizations and has become an important item in culture, religion, medicine, and trade. With the increasing awareness of protecting natural resources in modern times, the cultivation and use of agarwood is moving towards a more sustainable direction.

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1. Ancient Beginnings in Southeast Asia

Agarwood has been used for over 2,000 years, and its origins are believed to trace back to the forests of Southeast Asia. 

Indigenous peoples in the region, including: the Malays, Indonesians, and Vietnamese

• Botanical Origins: The Aquilaria tree, which produces agarwood, is primarily native to India, Cambodia, Vietnam, Laos, Thailand, Malaysia, and Indonesia. When the tree becomes infected by a particular mold (a specific strain of Phialophora parasitica), the wood reacts by producing a resin, which results in the fragrant heartwood known as agarwood or oud.

2. Use in Ancient Civilizations

Agarwood’s distinctive fragrance has made it highly sought after in many ancient cultures. Its use in religious rituals, perfumes, and medicine was documented across various parts of Asia.

• India: 

  

• In ancient India, agarwood was deeply associated with Hinduism and Buddhism. It was used in religious ceremonies, especially during incense burning, and was considered a symbol of purity and spiritual connection. It also appeared in the Ayurvedic tradition for its purported medicinal benefits, such as treating digestive issues and respiratory ailments.

• China: 

  
  
  

• Agarwood was highly valued in ancient China for its medicinal properties and was used as a form of traditional Chinese medicine. It was also prized as an incense, especially during the Tang dynasty (618-907 CE). The Chinese valued agarwood for its supposed ability to calm the mind and promote meditation.

• Middle East: 

  
  
  

• The use of agarwood in the Middle East and Arabia has a long history. It is believed that the Arabs were among the first to use agarwood in perfumes. The resin was burned as incense in religious and cultural rituals, and its use spread across the Islamic world as a symbol of wealth and refinement. Agarwood (oud) is still extremely popular in Arabian perfumery.

• Ancient Egypt: 

  
  
  

• Some evidence suggests that agarwood may have been used in ancient Egypt, particularly for embalming purposes, although there is less documented proof of this than in other regions. The ancient Egyptians used resins and aromatic woods in their religious ceremonies and for mummification.

3. The Rise of Agarwood Trade

Agarwood’s value spread beyond its local regions as trade routes connected different parts of the world. By the 7th century CE, it was a luxury commodity traded along the Silk Road between Asia, the Middle East, and Europe.

• Persia: 

  
  
  

• The Persian Empire also played a crucial role in the propagation of agarwood use. The Persian kings and nobles used oud in their royal courts, and it spread further into the Arabian Peninsula.

• Arab World and Islamic Golden Age: 

• 

• In the medieval period, especially during the Islamic Golden Age (8th-14th centuries), agarwood became associated with both luxury and spirituality. It was used in religious ceremonies, as incense in mosques, and was part of the opulent lifestyle of the Islamic elites.

• Europe: 

  
  
  

• Agarwood made its way into European society through the trade routes. However, it was not as commonly used or valued in Europe as in Asia or the Middle East. It was sometimes used in luxury perfumes and incense, but its high cost and relative rarity meant that it was less popular in the West until more recent times.

4. Modern Era

In modern times, the demand for agarwood has continued to grow, especially in luxury goods, perfume production, and traditional medicine.

• Perfume Industry: 

  
  
  

• The modern global perfume industry has been one of the main drivers of demand for agarwood. Oud has become one of the most coveted ingredients in high-end perfumes. The rich, deep, and complex scent of oud is associated with luxury, and various Western luxury brands have incorporated it into their fragrances. For instance, Tom Ford’s Oud Wood and Creed’s Royal Oud are some popular modern perfumes that feature agarwood.

• Conservation and Sustainability Issues: 

  
  
  

• Due to the increasing demand, overharvesting has put considerable pressure on wild Aquilaria trees. Some species are now listed as endangered. As a result, conservation efforts and sustainable harvesting practices have become an important focus. In certain countries, efforts have been made to cultivate Aquilaria trees in plantations, and agarwood is now being produced in a more regulated and sustainable way.

• Cultural Significance: 

  
  
  

• Agarwood remains a key part of Middle Eastern and Southeast Asian cultures. In countries like India, Thailand, Vietnam, and Indonesia, agarwood continues to play a significant role in religious rituals, from Buddhist incense offerings to Hindu and Islamic ceremonies. In Oman and Saudi Arabia, oud is not only a part of religious life but also a social custom; it is often used in personal grooming and gifting.

5. Contemporary Global Market

Today, agarwood is still a luxury item, often used for its aromatic properties in incense, perfumes, and traditional medicines. The global market for oud is worth billions of dollars, with countries like India, China, Thailand, Vietnam, and the United Arab Emirates leading in both production and consumption.

• Luxury Perfumes: Western perfume brands and niche fragrance houses (like Creed, Tom Ford, Amouage, and Chanel) have contributed to the growing popularity of oud in the Western market. The use of agarwood in perfumes has made it more widely recognized outside its traditional markets.

• Cultural Revival: In countries like India and the Arabian Peninsula, agarwood is still deeply ingrained in cultural practices. Oud is used extensively in Arabian hospitality and is often burned as incense in homes or offered to guests as a sign of respect.

Conclusion

Agarwood has a fascinating and rich history that spans continents and centuries. From its use in ancient religious rituals to its position as a luxury good in modern times, agarwood continues to hold significant cultural, spiritual, and economic value. However, its rising demand has led to concerns over sustainability and conservation, pushing the industry toward more responsible harvesting practices. Despite these challenges, agarwood remains one of the world’s most cherished natural treasures, with an enduring legacy across many cultures.

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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.

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An anonymous handwritten note tucked away in an archival box of miscellaneous seventeenth-century travel accounts, news reports, and other disparate documents from the late Medici Court in the Florentine State Archive describes the use and value of a curious odorous wood. The note names the wood “Calambà” or “Lignum Aloes” and describes it as so valuable that the king of Cochinchina (a kingdom in present-day Vietnam) kept a piece the size of his palm in his treasury.

It is hard to translate this extraordinary price tag into a dollar amount today, but you can get a sense of just how much it was by looking at the average daily wage of a worker in Florence at the beginning of the seventeenth century. Economic historian Richard Goldthwaite estimates that in the year 1600 the average daily wage in Florence was 20 soldi. Approximately 140 soldi equaled 1 gold florin. If the average Florentine worker earned approximately 52 florins in a year, it would have taken them nearly 77 years to earn enough to purchase the Grand Duke’s piece of agarwood. Fast-forward three centuries and agarwood remains one of the most expensive woods in the world. First-grade agarwood can cost as much as $100,000 per kilogram.

Agarwood (left), called Agallochus or Lignum Aloes in Mathias de l’Obel’s Icones Stripium, Seu Plantarum Tam Exoticarum, 1591, via the Missouri Botanical Garden. A copy is also held in the Dumbarton Oaks Rare Book Library.

Agarwood was prized well beyond early modern Italy. To quote the eighteenth-century British naturalist John Ellis, it had long been “precious in the East.” The earliest use of agarwood is recorded in the four Vedas of ancient India (approximately 1500–1000 B.C.E.). It was used as a religious offering as well as a fragrant smoke that was thought to facilitate spiritual connections. It was also used by the nobility to perfume their homes and signal wealth. From India, taste for and customs associated with agarwood traveled east and west along the Silk Road, an ancient network of trade and commerce that stretched from southern Europe to East Asia. As it traveled west, agarwood was incorporated into Christian and Islamic cultures as both medicine and incense and, by the time of the late Medici Court, also as an exotic object of natural history.

It was agarwood’s introduction to China and Japan, however, that would transform the fragrant substance into one of the world’s most prized and expensive woods for more than a millennium. Agarwood was first introduced to continental China from Southeast Asia sometime in the third century and was integrated into local incense and perfumery traditions. In southern China, agarwood was considered a prestigious luxury and quickly became an important import. Anthropologist Dinah Jung argues that the “gradual establishment of Buddhism in China supported the promotion of agarwood, since this movement generally emphasized the positive value of fragrance(s).” The rise of Buddhism only increased the significance of agarwood as incense became increasingly tied to religious practices. By the twelfth century, the value of agarwood had become equal to that of silver in southern China and across Southeast Asia.

Use of agarwood spread alongside Buddhism, and both reached Japan around the sixth century. By the eighth century, agarwood had become a crucial scent in Japanese incense ceremonies called kōdō. These elegant aristocratic rituals centered on enjoying, discerning, making, and judging the qualities of different aromatics. In Japan, there is even a large piece of ancient agarwood, called Ranjatai, that is still revered today; it is said to have been a gift from the Chinese to court to the Emperor Shômu (724–748 C.E.). Today Ranjatai is housed in the treasury of an important Buddhist temple and placed on display for special occasions.

Thanks to its rarity and inaccessibility, the odorous wood has a long history as a luxurious and spiritual substance. But in their natural state, the trees that produce agarwood are no more costly or desired than any other tree in South and Southeast Asia. The product of a microbial fungal infection, agarwood is actually a fragrant, dark, resinous wood formed in the heartwood of trees of the genus Aquilaria, which are native to the rainforests of Indonesia, Thailand

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Từ ngàn xưa Trầm Hương đã chiếm vị trí không thể thay thế trong tín ngưỡng và tôn giáo. Thế nhưng ở mỗi tôn giáo Trầm Hương lại mang một ý nghĩa rất độc đáo. Hãy cùng Trầm Hương Khánh Hòa khám phá những ý nghĩa của Trầm Hương với Thiên Chúa Giáo nhé.

Sau khi chịu khổ hình đóng đinh trên cây Thánh giá để gánh tội cho nhân loại, thi thể của Chúa Jesus được ướp bằng hỗn hợp nhựa cây Mật nhi lạp và Trầm Hương.

Tổng cộng có năm lần Trầm Hương được ngợi ca trong Kinh thánh như là một trong những loại hương liệu thơm nhất, cao quý nhất. Với Thiên Chúa giáo, Trầm Hương chính là mùi hương của Thiên Chúa.

Trầm Hương xuất hiện ở cả Kinh Cựu Ước lẫn Kinh Tân Ước; cụ thể: quyển Dân số ký 24:6, quyển Thánh thi 45:8, quyển Châm ngôn 7:17, quyển Nhã ca 4:14, quyển Giăng 19:39.

Trầm Hương thường xuyên được sử dụng trong các nghi lễ của Nhà Thờ như Lư Xông Trầm được đặt ngay dưới tượng Chúa. Đức Giáo Hoàng – người đứng đầu và dẫn dắt của các con chiên cũng thường sử dụng Bình Xông Trầm trong các nghi lễ quan trọng tại Vatican.

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