Why is Oud SO Expensive? Top 10 Reasons That Might Surprise You

This article will discuss why Oud or Agarwood is so expensive? And will discuss the top ten reasons. Before going towards our topic, is it essential for you to know about Agarwood and its uses?

What is Agarwood or Oud?

This wood is produced by the Aquilaria tree, which grows naturally in the forests. Agarwood is unique wood in the world and known as the “Wood of God.”

This wood is mostly found in Asian countries such as India, Vietnam, Cambodia, China, and Hong Kong. Agarwood is used in different kinds of products.

It is used in some medicines, Jewelry, perfumes, and wood are used to burn in religious places in different Asian countries.

 In earlier centuries, it was popular in some Asian countries, but now it becomes the most popular wood globally. Nowadays most demanding countries of Agarwood are the United States of America (USA), France, Saudi Arabia, India, and China.

Aquilaria tree grows in 5-7 years on average if it grows naturally. This tree is mostly growing in forests of Asian countries.

But due to the huge demand for Agarwood nowadays, many countries started cultivation of Agarwood by using modern cultivation techniques by using different fertilizers, chemicals,s and injections to grow the Aquilaria tree. According to modern cultivation, it usually takes 2-3 years to provide the Agarwood.

What is the value of Agarwood or Oud?

As discussed for thousands of years, this wood is known as “Wood of the Good,” which deems that this was unique and expensive wood from thousands of years.

According to some market research, it is estimated that the price of 1 kilo Gram (KG) pure Agarwood’s price is USD 100,000.

This shows that it is the most expensive raw material in the world.  But this tree must be gown 100% naturally, and the Aquilaria tree must be infected with mold.

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The annual demand for Oud oil is approximate $6 million, and the estimated value of this oil is one and half times from value of Gold.

This oil is also known as Oil of the gold. The average cost of this oil is $5000 per pound, and retailers often sell this oil for $100 per gram.

What makes the Agarwood more Valuable?

 Aquilaria tree is native to the rainforest of Asia. Before the infection, the healthy wood inside the tree is Odorless, worthless, and pale.  In the wild, trees can be damaged by some external forces, such as grazing animals.

Aquilaria tree depends on the attack to produce the aromatic resins called aloes that is moist and dar. With time,e aloes embed into heartwood and produce the Agarwood.

If you want to know that the Aquilaria tree has Agarwood or not, then you have to assess the following things.

  1. Ants bore in the tree trunk.
  2. Tree might be wounded
  3. Tree bring the microorganism, Fungus and Bacteria.

The Ants scratches the wound, and trees cover the wound with their own sap. After a long time, when this process is completed, and Agarwood is produced through this foundation. This took many years to produce the Agarwood.

Top ten reasons for highest prices of Agarwood or Oud.

Many reasons make Agarwood wood unique and expensive. We will discuss some top reasons which make Agarwood the most expensive wood in the world.

1) Complex Fragrance:

In today’s market, Oud oil has considerable value in the complex formulation of fragrances. Some famous designers have introduced their own fragrance utilizing by using Oud oil.  The best example is Armani’s Oud Royal and Tom Ford’s Oud Wood.

2) Used in Perfumes:

As discussed above, Oud oil is used in perfumes, and when it is used in perfume’s components, it used a base note.  It remains for a long time after the others dissipate.

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When manufacturers use this oil in the perfume’s foundation, these base notes become very expensive due to heavy fragrance and long-lasting. Its fragrance usually remains for up to six and more hours.

3) Used in Holly places:

Agarwood is used to burn in holly places for fragrance in Asian Countries. Many religions used this wood during prayer in their religious places.

In Hinduism, this wood is used during worship.

Muslims used the fragrance of Oud oil during their prayers in the mosques.

4) Used in Jewelry or Bracelet:

Agarwood is also used in some expensive jewelry, or it will be worthy if we communicate as   “jewelry becomes the most expensive when Agarwood is used in the Jewelry.”

Because Agarwood increases the value of jewelry considerably, agarwood’s jewelry is costly and used by some royal families or rich persons.

5) This is Unique Wood:

Agarwood is produced from the Aquilaria tree after injection mold, and it takes 5-7 years to produce the perfect useable product. If we use the wood before this time frame, the quality of wood and oil obtained from this wood might provide us 100 % results.

It is tough to search these oil-infected trees, and if someone grows through cultivation, then this occurs a considerable cost to produce the wood.

6) Deforestation Trend:

In today’s technological time, we are not giving impotence to forests and plantations. Many countries decrease the forests and use these places for other modern businesses or residences, affecting the forest and forest trees adversely.

The decreasing trend of the forest becomes unique and expensive natural trees.

7) Rarity of Wood:

Although Agarwood and Aquilaria tree is also known as unique Agarwood that can produce the Oud oil, it is scarce. 

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Only 2% of Aquilaria trees produce Agarwood, which can give the Oud oil, so due to the rare availability of this wood, prices of Oud oil are higher than other oils and the market.

8) Used in Medicines:

Aquilaria tree wood is also used in many medicines, and due to the rare availability of Agarwood, these medicines are costly and rare in the market.

Aquilaria tree’s leaves are often used to defend against different diseases such as cancer, Spam in the digestive system, etc.

9) Non availability of Substitute:

Although some traders using the replacement of Agarwood or Oud, there is no substitute available for pure and Unique Agarwood in the world.

Because the demand for Agarwood is continuously increasing and Aquilaria tree took 5-7 years to grow, and due to no availability of substitute, its prices increasing continuously.

 Complex process Of Cultivation:

Agarwood produced from natural resources is very rare concerning its demand then. Another process for producing the Agarwood is to produce from plantations and cultivations. This is also very expensive to cultivate the Agarwood plant.


 Now we conclude our debate that Agarwood is expensive. According to current market trends, it seems that the prices of Agarwood might remain constant or can grow with time because its demand is continuously increasing throughout the world.

If you are starting to work for Agarwood, then there is an opportunity that you can grow. Still, the limitation of this wood is it is difficult to assess 100% pure wood, and its availability is also scarce.

Please leave a comment for us in the comment section. If you have any questions related to Agarwood or Oud, we will respond to your question on a priority basis.