Botany and Resin Formation
Agarwood forms when Aquilaria or Gyrinops trees respond to injury or microbial infection by depositing sesquiterpenoid resin in the heartwood. Researchers have isolated fungi such as Fusarium solani and yeasts that trigger this defensive chemistry, though resin quality still depends on tree age, genetics, and environmental stress (Gao et al., 2012).
Natural infection can take 10–15 years; plantation managers now inoculate trees manually using microbial cultures or drilling techniques to accelerate resin production. However, high-quality “wild oud” still requires older trees and long maturation periods, explaining the rarity and price premium.
Cultivation Regions
Historic trade centered on Assam (India), the Mekong basin (Cambodia, Laos, Vietnam), and Malay Peninsula rainforests. Overharvesting devastated natural stands by the 1990s, prompting CITES to list Aquilaria spp. in Appendix II. Today regulated plantations in Assam, Bangladesh, Thailand, and Malaysia supply most perfumery-grade chips, while smaller artisanal producers in Cambodia and Laos continue to distill boutique batches for Gulf clientele (UNODC, 2020).
Younger plantations typically produce lighter, fruitier oils suited to modern blends; older trees with deeper infection layers yield the leathery, barn-like facets that traditional Arabian perfumery values.
Distillation and Yields
Chips are soaked for 1–3 days before steam or hydro-distillation. High-grade batches may undergo 10–15 day distillations at controlled temperatures to coax out denser molecules, whereas commercial operations use shorter cycles with stainless-steel stills. Average oil yield from soaked chips ranges between 1% and 2%, though resin-rich “super” chips can deliver up to 3% (Barden et al., 2000).
Producers grade oil by scent profile and residue content—Cambodian oils often skew maple-sweet, while Hindi (Indian) distillations feature smoky, leathery phenolics linked to longer fermentation stages.
Chemistry and Olfaction
GC/MS analyses highlight agarofurans, agarospirol, jinkoh-eremol, and guaiane-derived sesquiterpenes as key contributors to oud’s sweet-smoky profile. Chromones—such as 2-(2-phenylethyl)chromone—provide balsamic depth unique to resinous heartwood (UNODC, 2020). Oxidation during prolonged distillation adds leathery nuances prized in Hindi oils.
Because natural oils vary widely, perfumers often blend small quantities with synthetic ouds (e.g., Firmenich’s Agarwood Replacer or Givaudan’s Nexinone) to stabilize profiles and control cost.
Pricing and Trade
ITC reports wholesale prices ranging from USD 3,000–5,000 per kg for plantation-grade oils to USD 30,000–40,000 for wild Cambodi or Hindi oils with dense resin content (International Trade Centre, 2021). Retail attar bottles can exceed USD 100 per gram. High value and inconsistent regulation make the trade vulnerable to smuggling—UNODC estimates illicit agarwood shipments worth USD 1–2 billion annually (UNODC, 2020).
Auction platforms in the Gulf standardize grading, while online marketplaces for artisanal distillers now offer micro-batches with lab certificates confirming species and region.
Sustainability and Certification
All international trade in agarwood requires CITES export permits documenting source country and plantation registration. Some producers pursue Forest Stewardship Council (FSC) or PEFC certification to demonstrate sustainable harvest practices. Corporate sourcing programs, such as Symrise’s collaborations in Sabah (Malaysia), provide farmer training, microloans, and pathogen-free inoculation kits to reduce reliance on wild trees (Symrise, 2023).
Biotechnological platforms are also emerging: cell cultures producing agarwood chromones, or fermentation-derived aroma molecules that mimic oud facets without harvesting trees (International Trade Centre, 2021).
Regulation and Safety
IFRA does not impose specific concentration limits on pure oud oil but requires compliance with general safety data, including possible sensitizers such as cinnamic aldehyde or phenolic compounds present in some distillations (IFRA, 2023). Brands integrating natural oud must maintain CITES documentation for audits, verify absence of heavy metals or solvent residues, and disclose any allergens added through blended bases.
Many niche houses blend natural oud with synthetics (e.g., Givaudan’s Sylvamber, Firmenich’s Agaravant) to ensure consistent supply while communicating sustainability commitments to customers.