Still Growing Durian? Agarwood Is the Underrated Gold Crop with Higher Profits and Lower Competition

For decades, durian has been Malaysia’s most famous agricultural crop. But as competition grows, prices swing, and costs climb, more farmers and agriculture investors are asking: What crop offers better returns and a stronger long-term outlook?

The answer could be agarwood — a high-value, low-competition crop with one of the best cultivation ROI potentials in Asia.

Why Agarwood Is the “Gold Crop” You Haven’t Considered

Agarwood (gaharu), produced by Aquilaria trees after natural or induced infection, is one of the most valuable non-timber commodities in the world. Its resin-infused heartwood is used in luxury perfumes, premium incense, and traditional medicines — with especially strong demand from the Middle East, China, Japan, and India.

Top-grade cultivated agarwood resin can sell for RM20,000 to over RM100,000 per kilogram, depending on quality and market conditions. Yet global production still falls short of demand, creating opportunities for growers to secure premium prices.

1. Higher ROI: Agarwood Farming vs. Durian

When comparing profitable crops in Malaysia, agarwood farming offers clear advantages over durian in terms of return on investment.

• Durian: Requires 5–7 years before fruiting, faces volatile seasonal pricing, and operates in a saturated market.
• Agarwood: Can be harvest-ready in 6–8 years — sooner with modern resin induction — and benefits from steady year-round prices due to strong international demand and limited supply.

A cost-benefit analysis of Malaysian agarwood plantations found potential IRRs of 38–55% and NPVs exceeding RM150 million for large-scale models. By comparison, durian farming’s margins are increasingly constrained by high input costs and oversupply.

2. Agarwood’s Market Edge: High Demand, Lower Competition

Durian is widely cultivated across Malaysia, Thailand, and Indonesia, often leading to oversupply and price drops during peak harvests. In contrast, agarwood cultivation remains limited and niche in its profitability.

• Malaysia’s export value for agarwood incense and fragrances reached RM22 million in 2019, while chip exports alone were about RM9.93 million in 2018.
• Beyond fragrance, wellness demand is rapidly growing. Agarwood is widely applied in aromatherapy, meditation, and holistic health practices.

The global agarwood essential oil market is forecast to expand from USD 140.9 million in 2024 to USD 224.6 million by 2034, at a CAGR of 4.7%.

For investors, this means entering a market where increasing demand — from both luxury fragrance and wellness sectors — consistently exceeds supply. That balance provides stronger negotiating power, greater price stability, and compelling long-term growth potential.

3. Sustainable & Scalable: A Long-Term Agricultural Asset

Unlike seasonal fruit crops, agarwood can be harvested year-round. Its products — from resin to essential oils — have long shelf lives, enabling strategic sales when market prices peak.

It is also land-efficient: 1 acre can plant 800–1,000 agarwood trees using modern inoculation techniques. Cultivated agarwood reduces pressure on wild Aquilaria species, many of which are endangered, while supporting biodiversity and sustainable forestry.

4. Starting an Agarwood Farming Business in Malaysia

At Dadvance Agarwood Solutions (DAAS), we help farmers and investors establish a successful agarwood farming business with end-to-end support:

• High-quality Aquilaria seedlings optimized for resin production
• Advanced in-house inoculation methods for higher and consistent yields
• Comprehensive training & plantation management to maximize ROI
• Market access & buyer networks for competitive sales

We are also certified by IFRA (International Fragrance Association) and follow global safety and quality standards — ensuring that our agarwood products are trusted by both luxury perfumers and wellness brands worldwide.

Whether you’re a durian farmer diversifying your crops or an investor looking for a high-margin agricultural venture, agarwood offers one of the most compelling opportunities in Malaysia today.

Agarwood: Malaysia’s Next Profitable Crop

Durian may be the king of fruits, but agarwood is fast becoming the king of profits. With strong international demand, limited competition, and high ROI potential, agarwood farming is poised to be Malaysia’s next agricultural success story.

👉 If you’re ready to transform your land into a sustainable, high-return investment, contact DAAS at enquiry@dadvanceagarwoodsolutions.com. Our team will guide you from seedlings to sales, ensuring your plantation thrives and your profits grow.