Always and about Agarwood or Oud has kept its luxurious status and with no doubt is the most sought out and expensive of all times. Be it any product – tea, oil, perfume, – Agarwood market price just won’t settle for anything less. The common question has always aroused – why Agarwood is so expensive and the answer can be found in the never-ending demand of the product.
The demand and supply of Agarwood is the prime reason for its expensive nature. Since Agarwood is one of the rarely found trees in the world, there is not enough supply to meet the never-ending demand of the product. The price of the Agarwood products depend on the availability of the same and this sums up why Agarwood market price is expensive.
The formation of the fungus takes a lot longer time and the Agarwood is obtained from the fungus. The demand for Agarwood is extremely high and almost every industry looks forward to it especially the fashion and cosmetic industry. Celebrities and entrepreneurs are also in need of the same. On high notes, the demand just doesn’t go down. There is also the general public who love perfumes and Agarwood and that conveys the demand for the product. There are also health benefits for Agarwood and that is also a reason why the demand keeps increasing. When it comes to health benefits, Agarwood is just all under one roof.
Agarwood is said to be more expensive than gold and to a greater extent, it is true. Though the demand for the product is high, the supply is very low as there is less number of Agarwood trees. This raises the demand and also adds to the market price of the Agarwood.
The exploitation of the resins is another reason why Agarwood is expensive. The Agarwood is facing extinction and the trees have also become vulnerable. The trees are also being depleted at an alarming rate. The depletion of the tree has led to the reduction of Return of Investments too. If this continues at such a rate, it is not just the price of Agarwood that will be affected, but the species will be facing extinction. Since the plight of the tree is not quite good, the prices rise higher and higher and there is no way to meet the demands of the population and moreover, the tree takes a great number of years to produce the injected resin which gives the end product.
Even though all these, the demand for Agarwood is high and the prices are not in a position to decrease. The major Agarwood products being the Agarwood tea, Agarwood Oil and Agarwood perfumes, face a never-ending demand and everyone is just all ready to snatch it away. The Middle East countries are the largest consumers of Agarwood and it has become an inevitable part of their lives. Filled with health benefits and rich aroma, Agarwood is just another best thing that happened on planet earth and every great thing comes with a price, so does, Agarwood.