How is it used?
Agarwood is traded in the form of wood pieces, chips, powder and oil. International trade in agarwood is estimated at 6 million kilograms per year but this does not include the trade of other agarwood products like oil and incense. The value of agarwood re-exported from Singapore alone each year has been estimated to exceed US$1.2 billion..
The main importing countries are Taiwan, the UAE, Saudi Arabia and Japan.
Prices of agarwood from natural forests can exceed $10,000/kg. Cultivated agarwood from plantation trees is currently retailing at the equivalent of US$5,000/kg.
Oil prices are typically around US$8,000/kg but high quality oil can sell for over US$50,000/kg.
Agarwood smoke (from burning agarwood) and oil are used as customary perfume in the Middle East.In Europe, agarwood oil is a key component in the perfume M7 by Yves Saint Laurent.
In the East, agarwood is valued in Aurvedic, Tibetan and East Asian medicine for its ability to treat a range of disorders. Agarwood is also used by Muslims, Buddhists and Hindus as incense in religious ceremonies. Agarwood essences are used to fragrance soaps and shampoos, and the popularity of highly priced essential oils reinforces the value of agarwood derivatives. In Taiwan agarwood is an aromatic ingredient in local wines.