Agarwood 101: What Is Agarwood? Types, Formation & Why It’s Called "Liquid Gold"

If you’ve ever wondered about the origins of that rich, woody scent in luxury perfumes or traditional incense, chances are you’re thinking of agarwood. Known as "liquid gold" in many cultures, this rare material has captivated civilizations for centuries. But what exactly is agarwood, and why is it so valuable?

Figure 1: An agarwood tree trunk sliced open, revealing the dark, resinous agarwood (right) alongside regular wood (left) — the resin is what gives agarwood its prized aroma.

What Is Agarwood?

Agarwood, also called oud wood, is a resinous heartwood formed in certain species of aquilaria trees. These trees are native to Southeast Asia, South Asia, and parts of the Middle East. The magic happens when the tree is injured—by insects, lightning, or natural damage—and defends itself by producing a dark, aromatic resin. Over time, this resin accumulates, transforming the wood into the prized agarwood we know.

How Many Types of Agarwood Are There?

Agarwood varies dramatically based on its origin, tree species, and formation process. Some of the most sought-after types include:
  • Kynam Agarwood: A rare subset known for its sweet, creamy aroma, often called the "king of agarwood."
  • Wild Hainan Agarwood: Sourced from China’s Hainan Island, prized for its fresh, floral undertones.
  • White Agarwood: Recognized by its pale hue and clean, woody scent.
  • Insect-Bitten Agarwood: Formed when insects trigger resin production, creating complex, earthy notes.

Figure 2: A comparison of popular agarwood types, including Kynam (top left), Wild Hainan (top right), White Agarwood (bottom left), and Insect-Bitten Agarwood (bottom right).

Why Is Agarwood So Valuable?

The short answer: scarcity. Only 1 in 100 aquilaria trees naturally produce agarwood, and the resin can take decades to form. Add to that high demand in perfumery, traditional medicine, and spiritual rituals, and you have a material that can fetch prices upwards of $10,000 per kilogram. Its nickname "liquid gold" isn’t an exaggeration—agarwood oil (extracted from the wood) is even more concentrated, with some rare varieties costing thousands per ounce.

Agarwood vs. Oud: What’s the Difference?

You’ll often hear "agarwood" and "oud" used interchangeably, but there’s a subtle distinction. Agarwood refers to the raw, resinous wood itself, while oud (or oud wood) typically describes the aromatic oil extracted from it, or the wood when used in incense or perfume.


Whether you’re a perfume enthusiast, a collector, or simply curious about this ancient treasure, understanding agarwood’s basics is the first step to appreciating its timeless allure. Stay tuned for our next guide, where we’ll dive deeper into agarwood types and how to identify quality.

 

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