Global Oud Extracts Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Oud Extracts Market Analysis

The oud extracts market is expanding as demand for luxury fragrances continues to rise. This growing preference for high-end perfumes is driving the use of oud as a key ingredient. Its distinctive and long-lasting scent makes it highly sought after in premium perfumery. As luxury brands seek exclusivity, they increasingly incorporate oud to enhance product appeal. The shift toward natural and sustainable ingredients is further boosting its market presence. Ethical sourcing practices are gaining importance, influencing production and trade strategies. Additionally, oud’s application in cosmetics and aromatherapy is widening its commercial scope. Advancements in extraction techniques are improving both quality and yield, supporting industry growth. With Middle Eastern and Asian markets leading consumption, global accessibility is steadily increasing. The rising demand for niche and artisanal fragrances is also strengthening oud’s market position. Oud-based formulation advancements are driving new opportunities for growth as the industry progresses.

Oud Extracts Market Size

The global oud extracts market size was valued at USD 1.89 billion in 2024 and is projected to reach USD 3.73 billion by 2032, with a CAGR of 8.90% during the forecast period of 2025 to 2032. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Oud Extracts Market Trends

“Increasing Number of Health-Conscious Consumers”

The growing trend of health-conscious consumers is significantly shaping the oud extracts market. As awareness of natural ingredients rises, more consumers seek oud-based products for wellness benefits. This trend is driving demand for chemical-free formulations in personal care and aromatherapy. For instance, brands such as Aesop and Le Labo have introduced oud-infused skincare and perfumes to cater to this demand. Oud’s therapeutic properties make it a preferred choice in holistic wellness solutions. Known for its ability to maintain psychological health, oud is widely used in aromatherapy. Its antimicrobial properties make it beneficial in skincare, particularly for treating acne. Additionally, oud is gaining recognition for its role in improving digestion and reducing muscle and joint pain. With its anti-stress and anti-asthmatic effects, it is increasingly incorporated into wellness formulations. Its strong antioxidant properties further enhance its appeal in health-oriented products. As the wellness trend grows, the demand for high-quality, natural oud extracts continues to rise.

Report Scope and Oud Extracts Market Segmentation

Oud Extracts Market Definition

Oud extracts are derived from the heartwood of Aquilaria trees, which develop a dark, aromatic resin when infected by a specific mold. This rare and highly valued resin is the key source of oud, making it one of the most sought-after fragrance ingredients worldwide. Its rich, complex scent has made it a staple in luxury perfumery, particularly in the Middle East and Asia. With increasing consumer preference for premium, natural fragrances, oud extracts have gained significant traction in the global market. Leading perfume houses incorporate oud into exclusive formulations to enhance product appeal. Additionally, its therapeutic properties have expanded its use in wellness and aromatherapy products. The rising demand for sustainable and ethically sourced oud is reshaping market strategies. Advancements in extraction techniques are improving quality while maintaining authenticity. As the fragrance and wellness industries evolve, the market for oud extracts continues to expand, offering diverse applications across multiple sectors.

Oud Extracts Market Dynamics

Drivers

• Rising Global Demand for Oud Due to Its Therapeutic and Skincare Benefits

The rising global demand for oud is driven by its therapeutic and skincare benefits. Consumers are increasingly drawn to natural ingredients with wellness properties, driving market expansion. Its effectiveness in maintaining psychological health has boosted its use in aromatherapy. The antimicrobial and antioxidant properties of oud make it a key ingredient in skincare. Many premium skincare formulations incorporate oud to address acne and promote skin health. For instance, several high-end beauty brands have introduced oud-infused serums and facial oils. Its anti-stress and anti-asthmatic effects have led to its inclusion in wellness products. The ability to reduce muscle and joint pain has increased its adoption in therapeutic applications. Oud’s role in improving digestion has also contributed to its demand in health supplements. Both developed and developing markets are showing strong interest in oud-based products. Luxury fragrance houses continue to enhance their offerings by incorporating oud into exclusive formulations. The increasing focus on holistic well-being and natural skincare is further strengthening the oud extracts market.

• Growth in Aromatherapy and Wellness Applications

The growth of aromatherapy and wellness applications is driving demand for oud extracts. Consumers are increasingly seeking natural remedies for stress relief, relaxation, and mental well-being. Oud’s calming properties make it a preferred ingredient in essential oils and diffusers. Its anti-stress and anti-anxiety effects enhance its use in meditation and relaxation therapies. Many wellness centers and spas incorporate oud-based oils for holistic treatments and massage therapies. For instance, luxury spas offer oud-infused aromatherapy sessions to promote mental clarity and relaxation. Its anti-asthmatic and antimicrobial properties further boost its adoption in therapeutic applications. Oud’s ability to reduce muscle and joint pain has increased its presence in pain-relief oils. The rising preference for natural wellness solutions is fueling market growth across global regions. As consumer awareness of holistic well-being expands, the demand for oud in aromatherapy continues to strengthen.

Opportunities

• Increasing Penetration of Oud Extracts by Major Manufacturers

The increasing penetration of oud extracts by major manufacturers is creating significant growth opportunities. With rising consumer demand, companies are investing in advanced extraction techniques to enhance purity and quality. These innovations make oud more accessible, allowing its application to expand across multiple industries. Leading fragrance and skincare brands are launching premium oud-infused products to attract a wider audience. For instance, several high-end perfumery houses have introduced exclusive oud-based collections, catering to the luxury segment. This expansion is further supported by strategic collaborations between manufacturers and luxury brands, strengthening market reach. As a result, the presence of oud in personal care, wellness, and perfumery is rapidly growing. To ensure long-term supply stability, companies are adopting sustainable and ethical sourcing practices. Increased marketing efforts are also raising consumer awareness, reinforcing oud’s value in natural and luxury products. With surging demand across developed and emerging markets, manufacturers are scaling up production to maintain competitiveness. Continued investment in product innovation is expected to drive further market expansion, unlocking new growth potential.

• Rising Popularity of Oud Oil

The rising popularity of oud oil is unlocking significant opportunities in the oud extracts market. Growing consumer preference for natural and luxurious fragrances is driving its demand in perfumery. Its deep, long-lasting scent has made it a key ingredient in premium fragrance formulations. Luxury brands are capitalizing on this trend by launching exclusive oud-based perfume collections. For instance, several niche fragrance houses have introduced oud-infused blends to cater to evolving consumer preferences. Beyond perfumery, the oil’s therapeutic benefits are fueling its adoption in wellness and skincare products. Its antimicrobial and anti-aging properties have positioned it as a valuable ingredient in high-end skincare formulations. Wellness centers and spas are increasingly incorporating oud oil into aromatherapy and relaxation treatments. Rising disposable incomes and changing lifestyles in emerging economies are further accelerating market expansion. To meet the surging demand, manufacturers are investing in sustainable oud extraction techniques. As consumer awareness grows, oud oil’s presence across multiple industries is expected to strengthen further.

Restraints/Challenges

• Regulatory Restrictions on Agarwood Harvesting

Stringent regulations on agarwood harvesting pose a significant restraint in the oud extracts market. Due to overexploitation, Aquilaria trees are classified as endangered in many regions, leading to strict trade controls. Government policies and international agreements, such as CITES, limit the harvesting and export of agarwood. These restrictions create supply chain disruptions, affecting the availability of raw materials for oud essential oil production. For instance, several Southeast Asian countries have imposed quotas and permits on agarwood trade, slowing down supply. Compliance with legal frameworks increases operational costs for manufacturers, further impacting market pricing. Limited legal sourcing options encourage black-market trading, creating additional regulatory and ethical challenges. Sustainable plantation initiatives are being developed, but they require years to yield commercial-quality oud. As regulatory enforcement intensifies, businesses must navigate complex legal frameworks to ensure stable production. Without alternative solutions, regulatory constraints may continue to hinder market growth and expansion.

• Limited Availability of Oud Essential Oil in the Market

The limited availability of oud essential oil presents a significant challenge in the oud extracts market. Oud is derived from Aquilaria trees, which require specific conditions and years to mature. The natural scarcity of these trees restricts the large-scale production of oud essential oil. Unsustainable harvesting practices have further contributed to supply shortages, impacting market growth. Due to high demand and limited supply, the oil commands a premium price in global markets. For instance, rare and high-quality oud essential oils are often auctioned at exorbitant prices. This exclusivity limits its accessibility, restricting its adoption in mass-market products. Regulatory restrictions on agarwood harvesting have also tightened, affecting the raw material supply chain. Manufacturers are exploring sustainable cultivation methods, but long maturation cycles slow production scalability. The imbalance between demand and supply continues to challenge affordability and market expansion.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Oud Extracts Market Scope

The market is segmented on the basis of application and end-user industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Application

• Cosmetics and Personal Care
• Incense
• Therapeutics
• Others

End-User Industry

• Online Stores
• Hypermarkets/Supermarkets
• Specialized Drug Stores
• Convenience Stores

Oud Extracts Market Regional Analysis

The market is analysed and market size insights and trends are provided by country, application, and end-user industry as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

Asia-Pacific is expected to dominate the oud extracts market during the forecast year of 2025-2032 due to rising disposable incomes and urbanization which led to increased spending on premium fragrances and personal care products. Consumers in the region are showing a strong preference for oud-based perfumes, skincare, and wellness products due to their luxury appeal and therapeutic properties.

North America is projected to observe significant amount of growth in the oud extracts market during the forecast year of 2025-2032 due to the rising demand for aromatherapy treatments and the rapid adoption of premium personal care products. The expanding wellness industry and increasing awareness of natural therapeutic ingredients in the region contribute to this growth.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Oud Extracts Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Oud Extracts Market Leaders Operating in the Market Are:

• Biolandes (France)
• Dauper (Spain)
• Katyani Exports (India)
• Biofinest LLC (U.S.)
• Nusaroma Essential Indonesia (Indonesia)
• dève herbes (India)
• HYSSES SINGAPORE PTE. LTD. (Singapore)
• wefivegroup.com (India)
• Africa Plantation Capital Limited. (Kenya)
• Albert Vieille (France)
• MJI Group LLC (Japan)
• Ji'an Zhongxiang Natural Plants Co.,Ltd (China)
• Edens Garden (California)
• ASSAM AROMAS (India)

Latest Developments in Oud Extracts Market

• In March 2024, Rabanne introduced its 1 Million Golden Oud fragrance to the Indian market. The fragrance, crafted by Christophe Raynaud, features a richer and more intense composition, catering to the evolving preferences of high-end fragrance consumers. Originally developed for the Middle Eastern market, its extension into India underscores the rising demand for premium oud extracts in the global fragrance industry. This expansion is expected to enhance the market presence of oud extracts, influencing product innovation and increasing investments in high-quality oud sourcing and processing
• In July 2022, Agroforestry Group announced its partnership with Original Oud, a Malaysian brand specializing in oud-based products. By leveraging Original Oud’s expertise and Agroforestry Group’s supply chain capabilities, the partnership aims to meet the rising global demand for premium oud extracts. The agreement enhances market accessibility in key regions such as Singapore, the Middle East, and Europe, where the demand for luxury and natural fragrance ingredients continues to grow. This initiative also supports sustainable sourcing and ethical production, addressing concerns over agarwood depletion and regulatory constraints

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