Agarwood, also known as Oud, is a rare and valuable wood that has been used for centuries in various cultural and religious practices.
It is primarily found in Southeast Asia, particularly in countries such as Thailand, Cambodia, Vietnam, and Malaysia.
The wood is known for its unique and pleasant aroma, which is attributed to the resin that develops inside the tree when it is infected with a certain type of mold.
There are various types of Agarwood available in the market, including Ky Nam, Natural Agarwood, Artificial Agarwood, and Agarwood Essential Oil.
The price of Agarwood is influenced by several factors such as rarity, quality, age, and size.
Agarwood is one of the most expensive woods in the world due to its scarcity and high demand.
In this article, we will explore the different types of Agarwood and the factors that affect its price.
We will also delve into the question of how much Agarwood costs and why it is so expensive
Types of Agar Wood
Agarwood is the world’s rarest wood that is derived from the Aquilaria tree.
This wood consists of several types based on the amount of essential oil they produce, causing dissimilarity to agarwood price.
The price of agar wood is basically expensive due to its rareness and difficulty in the process.
Ky Nam is the first grade of agarwood with the highest selling price.
This commodity is considered more precious than gold as it contains the highest amount of essential oil than the other types.
The taste of this type is bitter, salty, and a bit spicy with a sweet aftertaste.
Ky Nam agar wood price varies on the type. It has four different types that come with different values.
White Ky Nam is the most valuable type with the highest agarwood price, followed by green Ky Nam, yellow Ky Nam, and black Ky Nam.
2.Natural Agar Wood
Natural agarwood is a general term that can be divided into several categories.
Further, these categories can be divided into smaller segments for price diversification. Considering the price agar wood costs is not cheap, price diversification allows people to get a more affordable version.
Agarwood type 1 is the most expensive due to the high amount of essential oil it has, which makes it sink into the water.
Agarwood type 2 to type 4 vary in price, although they are typically lower than type 1. These types are also popular in the making of craft products.
Artificial agarwood price is the lowest of all. Agarwood price per kg Philippines for this type ranges from ₱818,000 to ₱3,800,000.
There is only a slight difference between the natural and artificial types because the artificial one still retains the quality and function of the original one.
4.Agarwood Essential Oil
Essential oil is one of the major products of agarwood. The price of agarwood essential oil starts from ₱1,600,000.
This concentrated liquid has a unique aroma and it is commonly available in the form of small jars on the market.
Factor That Affect Agarwood Price
A number of factors affect agarwood price, including rarity, quality, and age.
The availability of agarwood trees becomes one of the main reasons for their expensive price.
Besides, the difficult formation process is also a challenge for agarwood production.
Agarwood price per kg is determined by the quality and amount of resin in the wood.
The higher resin it contains, the higher its price. More amount of resin means a more intense and longer-lasting fragrance.
Age becomes a determining factor when it comes to price. Agarwood continues to produce resin to mature, which means older trees have more resin.
Besides, old agarwood trees are harder to find nowadays although agarwood tree price may be lower.
Size is an important factor that affects the price. A bigger block of agarwood has a higher value because it is easier to craft into many things like beads, bracelets, or other types of jewelry.
How Much Agarwood?
Agarwood price varies on type.
Ky Nam as the most expensive type of agarwood, for example, costs around ₱5,450,000 to ₱43,600,000.
Agarwood price in Philippines for the type 1 is somewhere between ₱1,090,000 to ₱5,000,000.
Why Agarwood Is Expensive
There are so many reasons that explain the skyrocketing price of agarwood but rarity is the major one.
The Uncommonness of agarwood trees affects their availability and according to the law of supply and demand, prices will rise when demands exceed supply.
Agarwood free price in Philippines reaches millions of Pesos, which is far more expensive than other aromatic wood.
With the global market demand that has been increasing, there is still the possibility for a further rise in agarwood price.