Why Is Agarwood So Expensive? A Complete Guide to Agarwood Price & How to Buy Smart

If you’ve ever checked agarwood prices, you might have been shocked: raw wood can cost $1,000–$100,000 per kilogram, and agarwood oil often exceeds $10,000 per ounce. Why is this wood so pricey, and how can you avoid overpaying? Let’s demystify agarwood cost.
Figure 1: Agarwood chips (left) beside gold bars (right) — a visual comparison highlighting agarwood’s nickname as "liquid gold" due to its high value.

5 Reasons Agarwood Is So Expensive

  1. Rarity: Only a small percentage of aquilaria trees produce agarwood. Wild trees are now endangered (protected by CITES), so most agarwood comes from controlled plantations—still limited in supply.
  2. Long Formation Time: Resin takes 5–50 years to develop, depending on the tree’s age and injury type. Older, naturally formed agarwood (like 50-year-old Hainan agarwood) is pricier.
  3. Labor-Intensive Extraction: Extracting agarwood oil requires distilling tons of wood to produce just a few liters. 古法水蒸馏 (traditional water distillation) adds to the cost but preserves quality.
  4. High Demand: Used in luxury perfumes (Chanel, Tom Ford), traditional medicine, and rituals worldwide. Middle Eastern markets, in particular, drive demand for oud wood perfume and bakhoor.
  5. Cultural Value: For centuries, agarwood has symbolized wealth and spirituality. In Arabic cultures, it’s called "العود" (oud) and is a staple in royal ceremonies—adding to its prestige.

Agarwood Price Breakdown

  • Raw Agarwood Wood: $500–$10,000/kg (varies by quality, origin, and resin content). Wild Hainan or Kynam agarwood tops the range.
  • Agarwood Oil: $1,000–$15,000/ounce. Cold-pressed or aged oils (3+ years) are costlier.
  • Agarwood Tree Price: $50–$200 per sapling (mature trees with resin can sell for tens of thousands).
  • Oud Products: Oud wood perfume ($100–$500/bottle), bakhoor ($50–$500/box), and rosaries ($200–$2,000+).

Figure 2: A price comparison chart showing the range of costs for agarwood products, from raw wood to luxury perfume.

3 Tips to Buy Authentic Agarwood Without Overpaying

  1. Check Origin & Certification: Reputable sellers provide details on the wood’s source (e.g., "wild Hainan" or "plantation-grown") and CITES certification (for wild varieties).
  2. Test the Aroma: High-quality agarwood has a complex, balanced scent—avoid harsh, chemical-like smells (a sign of fakes). Agarwood oil should feel viscous and leave a long-lasting trail.
  3. Compare Prices: If a deal seems too good to be true, it probably is. Bargain "agarwood" is often fake (made with other woods or synthetic scents).
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