• a wide range of applications
• an increase in consumer demand
• consistently high market value.
It is one of the easiest ways to diversifying your portfolio with a proven, low-risk commodity.Consider the following benefits:
• Worldwide demand
Used throughout the world for centuries, agarwood incense and agarwood oil continue to increase in popularity as the foundation for a wide variety of cosmetic products and medicinal cures. These applications generate a market valued at $2 billion USD that extends across countries including Taiwan, the UAE, Saudi Arabia, China and Japan.
Agarwood is the world’s most precious heartwood, occurring naturally in only 1 out of every 100 aqualaria trees.
• Consistently high market value
The retail price for high-quality agarwood incense chips ranges between $5,600 and $10,000 USD per kilogram depending on quality and demand, making agarwood the most valuable wood in the world.
• Potential for growth
Proven artificial inducement method, ensures agarwood formation in all trees. Plus, they are relatively immune to shifts in climate as well as drought and disease.
• Minimal waste
Each tree contains varying quantities of high, medium and low-quality resin mixed with agarwood that can be harvested into high-quality wood chips and used directly as incense, as well as lower-quality chips that can be used for incense sticks or agarwood oil extraction.
• Environmentally sound
The harvesting of agarwood from natural old-growth forests is illegal in most countries. However, agarwood can be cultivated on plantations through sustainable forestry, catering to the global market while adhering to all environmental regulations.
• Fast returns
Agarwood delivers medium-term investment horizons through products that can be produced in young plantation grown trees after only 5 years, with returns ranging from low to high based on the size of investment.
• Low volatility
Agarwood’s non-correlation with traditional investments, such as stocks and bonds, makes it resilient to the often erratic fluctuations of other asset classes.
The demand for agarwood far exceeds the available supply which is naturally restricted as it is only formed natually in a small percentage of aquilaria trees. The fragrant resin that permeates the heartwood is produced as a response to wounding or a fungal infection which, in the wild, can take up to 100 years to form. However when grown commercially using recently developed innoculation or inducement process to instigate the wounding infection it can reach maturity at approximately 6 years. The dark resin is formed as an antibody for healing after injury or fungus infection. The agarwood is widely used in perfume and cosmetic industry, and religious activities.