Agarwood chips are the primary harvested product from Aquilaria trees, obtained from wood that has been naturally or artificially inoculated to produce resin. They are widely used in:
- Perfumery & essential oils
- Incense / bakhoor / traditional rituals
- Luxury wellness products
1. Product Types
| Type | Description | Typical Uses |
|---|---|---|
| Raw Resinous Chips | Naturally or artificially resin-infused wood pieces | Distillation for oud oil, incense |
| Graded Chips | Sorted by resin content, density, and aroma quality | Premium perfumery or high-value exports |
| Fine Dust / Powder | Small wood particles | Oil extraction, incense blending, cosmetics |
2. Key Quality Indicators
- Resin Content – Higher resin = higher value
- Color & Density – Dark, heavy chips indicate mature resin formation
- Aroma Profile – Rich, sweet, complex scent preferred for perfumery
- Origin & Traceability – Legally sourced, certified CITES-compliant wood fetches premium prices
3. Market Value
| Grade | Typical Price / kg (USD) | Remarks |
|---|---|---|
| Low / Industrial | $100–$500 | Used for mass incense, low-grade oil |
| Medium / Premium | $500–$1,500 | Perfume distillation, niche markets |
| High / Super Premium | $3,000–$10,000+ | Luxury perfumery, GCC, EU, Japanese markets |
Prices vary depending on tree origin, resin maturity, and buyer market.
4. Investor Considerations
Advantages:
- Shorter-term liquidity than oil (chips can be sold immediately post-harvest)
- Stable demand in GCC, EU, and Asia
- Easier storage & transport than oil
Challenges:
- Price highly dependent on resin quality and grading
- Market competition with wild agarwood or other regional sources
- Requires CITES/DENR-compliant sourcing and documentation
5. Typical Supply Chain
- Plantation → Harvest
- Sorting & Grading → Drying & Packaging
- Export / Domestic Market → Buyers (perfume houses, incense traders)
- Optional: Distillation into Oil → Value-added product for higher margins