Agarwood chips market seen reaching $59.53 billion by 2030

A new Business Research Company report projects steady growth in the global agarwood chips market, driven by demand from incense, luxury fragrance, wellness and e-commerce. North America led in 2025, while Asia-Pacific is expected to grow fastest through 2030.

Why it matters: - Agarwood chips are moving from a niche raw material into a broader market tied to incense, oud fragrance, wellness products and premium personal care. - The market is forecast to grow from $40.06 billion in 2025 to $43.29 billion in 2026, then to $59.53 billion by 2030. - That growth matters for growers, fragrance makers, incense brands and online sellers targeting premium and natural-product buyers.

What happened: - The Business Research Company published its Agarwood-Chips Market Report 2026, covering market size, trends and a global forecast for 2026-2035. - The report says the global agarwood chips market rose on cultural and religious use, interest in oud fragrances, expansion of agarwood cultivation in Asia, trade in natural aromatic wood and demand for wellness and meditation products. - The report was issued July 15, 2026. - The report includes a free sample and the full report.

The details: - Agarwood chips are small fragments from Aquilaria trees that develop a dark, fragrant resin in the heartwood. - The chips are used mainly as incense for a long-lasting aroma when burned. - Agarwood chips also serve as a raw material for perfumes, including oud oil, and are used in religious and cultural rituals. - The report says the market is expected to grow at an 8.1% compound annual growth rate in 2026 and at 8.3% through 2030. - Key growth factors cited for the longer-term outlook include sustainable luxury fragrance demand, organic incense, high-end perfume production, cultivated agarwood plantations and consumer interest in exotic aromatic products. - The report expects demand to keep shifting toward resin-rich chips in premium incense, natural and organic fragrance ingredients, cultivated plantations and oud-based luxury perfumes. - A major driver is the use of agarwood chips in cosmetics and personal care products. - The report links that demand to consumer appetite for natural, organic and luxury beauty items with plant-based ingredients. - Oud oil extracted from agarwood chips is used in perfumes, skincare and personal care formulations. - The Cosmetic, Toiletry and Perfumery Association in the UK said toiletries and beauty sales reached about $13.0 billion (£10.3 billion) in 2024, up 8.4% from the prior year. - The report also points to spa, meditation and relaxation businesses as a demand source because they use agarwood chips in incense, aromatherapy and relaxation practices. - The International Spa Association said the U.S. spa industry generated $21.3 billion in revenue in 2023, up from $20.1 billion in 2022. - E-commerce is another growth driver because online channels help producers sell premium agarwood products directly to consumers. - U.S. Census Bureau data showed total e-commerce sales of $1,233.7 billion in 2025, up 5.4% from 2024. - North America held the largest market share in 2025. - Asia-Pacific is projected to be the fastest-growing region in the years ahead. - The report also covers South East Asia, Western Europe, Eastern Europe, South America, the Middle East and Africa. - The 2026 reports add market attractiveness scoring, total addressable market analysis, company scoring matrix graphics and tables, Excel-based forecasting dashboards, market hotspots infographics, key technology analysis and future trend analysis.

Between the lines: - The report frames agarwood chips as a category benefiting from two overlapping trends: premiumization and natural-product demand. - The strongest demand signals come from markets where fragrance, ritual use and wellness spending intersect. - The regional outlook suggests cultivation and supply-chain expansion in Asia could matter as much as consumer demand in North America and other mature markets.

What's next: - The Business Research Company expects cultivated agarwood plantations, luxury fragrance adoption and online distribution to keep pushing the market higher through 2030. - Asia-Pacific’s faster growth rate suggests the center of market expansion may shift toward producing and consuming markets in the region. - More information is available from The Business Research Company.