Why Agarwood

Sustainable agarwood is a sound investment for 3 reasons:

  • a wide range of applications
  • an increase in consumer demand
  • a consistently high market value.

It is one of the easiest ways to meet your investment goals while diversifying your portfolio with a proven, low-risk commodity.
Consider the following benefits:

  • Worldwide demand
    Used throughout the world for centuries,agarwood incense and agarwood oil
    continue to increase in popularity as the foundation for a wide variety of cosmetic
    products and medicinal cures. These applications generate a market valued
    at $2 billion USD that extends across countries including Taiwan, the UAE,
    Saudi Arabia, China and Japan.
  • Rare
    Agarwood is the world’s most precious heartwood, occurring naturally in only 1
    out of every 100 aquilaria trees.
  • Consistently high market value
    The retail price for high-quality agarwood incense chips ranges between
    $5,600 and $10,000 USD per kilogram depending on quality and demand,
    making agarwood the most valuable wood in the world.
  • Potential for growth
    Proven artificial inducement method, ensures agarwood formation in all trees.
    Plus, they are relatively immune to shifts in climate as well as drought and disease.
  • Minimal waste
    Each tree contains varying quantities of high, medium and low-quality resin
    mixed with agarwood that can be harvested into high-quality wood chips
    and used directly as incense, as well as lower-quality chips that can be used for
    incense sticks or agarwood oil extraction.
  • Environmentally sound
    The harvesting of agarwood from natural old-growth forests is illegal in
    most countries. However, agarwood can be cultivated on plantations through
    sustainable forestry, catering to the global market while adhering to all
    environmental regulations.
  • Fast returns
    Agarwood delivers medium-term investment horizons through products
    that can be produced in young plantation grown trees after only 5 years, with
    returns ranging from low to high based on the size of investment.
  • Low volatility
    Agarwood’s non-correlation with traditional investments, such as stocks
    and bonds, makes it resilient to the often erratic fluctuations of other
    asset classes.

The demand for agarwood far exceeds the available supply which is naturally restricted as it is only formed natually in a small percentage of aquilaria trees. The fragrant resin that permeates the heartwood is produced as a response to wounding or a fungal infection which, in the wild, can take up to 100 years to form. However when grown commercially using recently developed innoculation or inducement process to instigate the wounding infection it can reach maturity at approximately 6 years.  The dark resin is formed as an antibody for healing after injury or fungus infection. The agarwood is widely used in perfume and cosmetic industry, and religious activities.

Result of illegal poacher …

Agarwood trees are registered as an endangered species by CITES due to its precious value, causing illegal wood smuggling. Majority of the current agarwood supply is derived from the wild cutting due to illegal logging. What will happen when the wild can no longer support? To date, no artificial way to replace agarwood is developed yet.

Result of illegal poacher in the wild leads to extinction

In respect of sustainable agarwood, the concept of Aquilaria plantations was initially developed in Thailand, with various techniques, capable of providing premium quality agarwood comparable to the natural source.

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4 Responses to Why Agarwood

  1. Ben wong (Office) says:

    Interested about Gaharu knowledge .
    Pls advise any seminal should I attend to learn more about this knowledge

  2. Ajay. pipaliya says:

    Are Atmosphere suitable for agarwood in Gujrat {India ] ?

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