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Agarwood Malaysia > Agarwood

What is Agarwood?

Agarwood is a resinous part of the non-timber Aquilaria tree, which is a highly valuable product for medicines, fragrance, incenses, aromatherapy, and religious ceremonies throughout the world especially in Asia, the Middle East with increasing demand from European countries.

  • Widely used for centuries.
  • Demand has exceeded supply.

Agarwood (also known as gaharu in South East Asia, Oud in the Middle East, Chen Xiang in China, Jinkoh in Japan, and agar in India) is a highly valuable aromatic dark resinous heartwood of Aquilaria species. The formation of agarwood is generally associated with the wounding and fungal infection of the Aquilaria trees. The resin is secreted by the trees as a defense reaction and deposited around the wounds over the years following the injury, where the accumulation of the volatile compounds eventually forms agarwood.

Agarwood has high demand throughout the world as a raw material for incense, perfume and medicine purposes

In order to supplement the steady and increasing demand for agarwood, commercial and cultivate plantation of agarwood is needed which are done through an artificial induction process known as the “inoculation” process. This can prevent from indiscriminate harvesting of agarwood from natural habitats.

Agarwood Declining Supply

The IUCN red-listed Aquilaria in 1998 and the threat spelled out thus: “Exploitation of the diseased wood for the perfume industry has resulted in population declines exceeding 80% over the recent year. There is a strong indication that the same losses are occurring in the rest of the Indo-China.” A shocking revelation by industry expert shows that global supply of Agarwood currently only meets about 20% of market demand.

Exponential Demand Globally

The Malaysia Timber Industry Board (MTIB) reported recently in 2019, the total export value for the incense products and fragrances reaching RM 22 Million and RM 112 Million respectively and the export value for Agarwood chips stood at RM 9.93 Million in 2018. Agarwood’s price skyrocketed is due to reason for its medicinal values, cultural usage, and as a based oil for the world top perfumes brands. The top importer country remains to be Saudi Arabia and there is a growing demand from countries like the U.S, Germany, U.K, China, Italy, France, and Japan.

known as liquid gold is one of the most expensive woods in the world

Agarwood in our society



A wide array of products of different grades is available on the market, varying with geographical local ad cultural deposition.  Price for Oud oil can fetch up to US$61,000 per liter and Agarwood chips for medicinal use vary from US$4,500 to US$45,000 per kilogram and these prices are based on middle grades.



The “Wood of God” has been traded and highly coveted for thousands of years and the usage of it still remains until today in religion and curative properties, and elaborate traditional and religious ceremonies. Agarwood can be utilized from its leaves to its root. 

No Substitution


Years of research by top perfume companies to substitutes Agarwood scent through the “synthesizing process” had led to failures. Agarwood characteristic. There are approximately 150 odd fragrant molecules that constitute Agarwood aroma and it is unexplainable by scientists.  

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Agarwood oil is used in perfumes and cosmetic products and medicines throughout the world. Agarwood chip is made into incense, or the wood is carved into artistic shapes, which are in very high demand in the international market. Agarwood oil is by far the most precious essential oil in the world.