Close-up of resinous agarwood
Aquilaria crassna · A. malaccensis

Agarwood

The resin-rich heartwood behind oud oil, one of the most valuable natural raw materials in the world.

Southeast AsiaPerfumery & incenseCITES-listed genus
USD 12B+Estimated global agarwood market
USD 50,000+Per kilo for top-grade oud oil
~7%Of wild trees form resin naturally
80%+Decline of wild Aquilaria over 150 years
Overview

About Agarwood

Agarwood, also called gaharu or oud, is the dark, fragrant resin that forms in the heartwood of Aquilaria trees when they are wounded or infected. Healthy wood is pale and odourless; resin-saturated wood is dense, dark and among the most expensive natural materials traded anywhere.

Aquilaria grows from the Himalayan foothills through Southeast Asia to Papua New Guinea, and at least 15 species can produce agarwood. Overharvesting has driven the wild genus close to extinction, so plantation-grown, inoculated trees are now the sustainable source of supply. Plantations International cultivates Aquilaria from selected genetic stock and manages the full cycle from nursery to distillation.

Growing guide

Ideal growing conditions

The site, soil and climate parameters our agronomists work to when developing a agarwood plantation.

Altitude0–1,000 m

Around 500 m is considered ideal

SoilTolerates poor, sandy soils

Good drainage matters more than fertility

ClimateHumid tropical

Native to monsoon forests of Southeast Asia

RainfallHigh, well distributed

Irrigation supports dry-season growth

LightPartial shade when young

Full sun as the canopy matures

PropagationSeedlings from selected trees

Maintained genetic source material

Products & markets

What agarwood is used for

Oud oil

Distilled essential oil and a cornerstone of luxury perfumery.

Incense & bakhoor

Wood chips burned for fragrance across the Middle East and Asia.

Ceremonial use

Tied to religious practice in the Middle East, Japan and Vietnam.

Traditional medicine

Used for centuries in Asian and Middle Eastern medicine.

Carvings & beads

High-grade wood is carved into beads and ornaments.

Hydrosol

Aromatic water recovered during distillation.

Market

Why demand outruns supply

Agarwood has been traded for thousands of years, and demand from perfumers in the Middle East, Europe and East Asia continues to grow. Wild resin forms in only a small share of trees, and unsustainable felling has nearly wiped out natural stands in parts of Southeast Asia.

The scent cannot be reproduced commercially. Its key compounds are complex 15-carbon sesquiterpenes, and the cheap chemical substitutes on the market do not closely match natural oud. That leaves cultivated, inoculated plantations as the realistic way to meet demand.

Did you know?Agarwood was used to scent the armour of Samurai warriors, and appears in some of the oldest religious texts in the world.
Wild supplyGenus listed by IUCN and CITES; Aquilaria crassna is protected in Vietnam
Quality driversWood grade and distillation length set the oil grade
Adulteration riskCan occur at raw material, distillation and distribution stages
SyntheticsNo commercial synthetic matches natural oud
Crop cycle

From nursery to harvest

  1. 1Months 0–12

    Nursery

    Seedlings raised from genetically selected mother trees.

  2. 2Year 1

    Planting

    Trees established in managed blocks with weed control and shade.

  3. 3Years 1–5

    Growth

    Trunks build girth; health and spacing are monitored.

  4. 4Year 5 onward

    Inoculation

    Controlled treatment triggers the tree’s resin response.

  5. 5After resin forms

    Harvest & distillation

    Resinous wood is graded, then water-distilled into oud oil.

Field management

How we manage agarwood

Genetics

Planting stock comes from maintained source material so resin performance is consistent.

Inoculation

Resin is induced in cultivated trees rather than taken from protected wild stands.

Grading

Wood is sorted by resin content before distillation to protect oil quality.

Traceability

Plantation origin supports legal trade in a CITES-listed genus.

Our services

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Gallery

Agarwood in the field

FAQs

Agarwood: common questions

What is agarwood?

Agarwood is the resinous heartwood of Aquilaria trees. The tree produces the dark, fragrant resin as a defence response to wounding or infection.

Why is oud oil so expensive?

Only a small share of wild trees form resin, the wild genus is protected, and distillation needs a large volume of graded wood for a small amount of oil. Top-grade oil can exceed USD 50,000 per kilo.

Can agarwood be made synthetically?

Not commercially. Its main scent compounds are complex sesquiterpenes, and chemical substitutes do not closely match the natural scent.

Is plantation agarwood sustainable?

Yes. Cultivated, inoculated trees take pressure off endangered wild populations and keep genetic source material in managed hands.

Plantation Partnership Opportunities

Develop a agarwood plantation with us

Request a free initial consultation with our plantation development and management team.