The Global AGARWOOD and OUD OIL Market
Agarwood Market Demand
The current global market for “Oud Oil” and other related Agarwood products is estimated to be in the range of over USD 12 billion and is ‘growing rapidly‘. The global perfume and fragrance industry, the major industry buyer of Oud Oil, is expected to exceed US$ 36 billion in 2020 according to research undertaken by global research analysts.
Two of the largest importers of Agarwood are Taiwan and Japan, where they import in excess of 50,000 tonnes annually with a purchase value in excess of 3 billion USD per year.
The largest and most significant Market by far is the Middle East. One well known Saudi Arabian retailer, specialising in Agarwood, has over 800 retail outlets across 35 countries with over 1,400,000 customers, and is one of the world’s largest perfume retailers in a market worth US$ 6.3 billion a year.
Today, due to very strict growing constraints, Agarwood farmers can only supply 20% of the world’s Agarwood demand, fuelling its meteoric price increase year after year.
“Agarwood is the most expensive raw ingredient in the world with high quality Oud Oil selling for in excess of 50,000 USD per kilogram”
Investing in Malaysian Forestry
Malaysia, strategically located in the heart of Asia, is supported by a market-oriented economy and has pro-business government policies. Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits.
Malaysia's key strengths include well-developed infrastructure and a productive workforce.
Malaysia is a politically stable country with a well-developed legal system.
Malaysia is truly the land of opportunity for business, allowing numerous benefits and concessions to those trading and investing in the country, characteristics that can be summarised as follows:
• British Based Legal System with First World Status
• Ranked 6th out of 189 countries to do business with by the World Bank
• Malaysia GDP USD 313 Billion and GDP growth - 6.0% (2015)
• Ranked 10th in Global Foreign Direct Investment
• Stable economy and democratic government
• One of the best Business Infrastructures in Asia
AGAROUDH have been successfully doing business in Malaysia and with Malaysian Companies for the last 15 years. Its success story in various sectors in this incredible country, have pushed AGAROUDH to go into this new venture of purchasing Agarwood trees with great confidence and peace of mind.
The economy of Malaysia is the 4th largest in Southeast Asia and is the 38th largest economy in the world. Malaysian productivity is significantly higher than neighbouring Thailand, Indonesia, Philippines or Vietnam.
According to the Global Competitiveness Report 2017, the Malaysian economy is the 23rd most competitive country in the world.
In recent years in Malaysia, Agarwood plantation has attracted many enthusiastic entrepreneurs to venture capital for its promising huge return on investment. With continued successful research into the inoculation technique, it has enhanced the level of confidence amongst the investor - both local and foreign.
We at AGAROUDH have secured a highly exclusive and lucrative deal with a high level plantation in Malaysia, and have secured 300,000 aged Agarwood trees. These trees, once harvested will produce, amongst other products, highly sought-after top grade Oud Oil and highly desirable Oud Wood Chippings.
With this approach, it is not only a profitable venture but also will conserve the remaining Agarwood trees in their natural habitats. At the same time the plantation will be run in the most professional way by our partners, and will help serve the world demand for Agarwood trees.
The exit brand...
As well as Agarwood itself (the resin), the following Top Grade products will be produced from the trees under the branding of our company – AGAROUDH:
• OUD OIL
• OUD WOOD CHIPPINGS
• BAKHOOR – this is the Arabic name given to scented chips or a blend of natural traditional ingredients
• OUD INCENSE CONES
• OUD INCENSE STICKS
• AGARWOOD TEA
• AGARWOOD BEADS
The 'AGAROUDH' brand will be showcased at the most relevant and prestigious
trade shows. A vigorous and well-thought-out marketing campaign will be launched
for the brand. 'AGAROUDH' will be positioned as a 'market leader' within the
Agarwood sector. The 'AGAROUDH' branding will set it apart from any other
products on the market based on QUALITY and SUSTAINABILITY .
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