Agarwood-Chips Market Global Report 2026

The agarwood-chips market size has grown strongly in recent years. It will grow from $40.06 billion in 2025 to $43.29 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth during the historic period can be attributed to the expanding cultural and religious utilization of incense products, increasing global demand for oud-based fragrances, growth in agarwood cultivation activities across Asia, rising trade of natural aromatic wood materials, and increasing preference for traditional wellness and meditation products.

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 during the forecast period can be attributed to rising demand for sustainable luxury fragrance ingredients, increasing adoption of organic incense products, expansion of premium perfume manufacturing applications, growing investments in cultivated agarwood plantations, and heightened consumer interest in exotic aromatic experiences. Major trends during the forecast period include increasing demand for high-quality resin-rich agarwood chips in luxury incense applications, growing use of agarwood chips in traditional religious and spiritual practices, rising consumer preference for natural and organic fragrance ingredients, expansion of cultivated agarwood plantation practices to ensure sustainable supply, and increasing popularity of oud-based perfumes in global luxury fragrance markets.

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 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 $1.23 trillion 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.

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.

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

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.

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.

The agarwood-chips market research report is one of a series of new reports 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.

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