The fragrance industry holds a major share in the personal care and cosmetics industries for being used as key ingredients in the products and in recent years it has evolved to be a highly significant business itself. In 2018 the global fragrance market size was valuedat USD 70.70 billion and during the forecast period of 2019-2025 it is anticipated to register a compound annual growth rate (CAGR) of 3.7%. The market growth is attributed to the rise in disposable income coupled with growing trend of personal grooming. US, Europe remaining the trendsetter- Brazil, China ,Japan, Middle Eastern and Southeast Asian countries are contributing largely.
Agarwood is one of the most expensive non-timber, resinous heartwood, mainly traded in three forms: woodchips, wood dust/powder, oil. It's a highly priced and extremely rare incense. Global prices of agarwood chips can be ranging from US$30-$9000 per kg depending on its resin percentage. Even the essential oil fetches similarly high prices of around US$ 30,000 per kg for high grade distilled agar oil while the wood itself is worth upto US$10,000.
Major countries producing agarwood are China, Vietnam, Australia, Indonesia,Laos, Malaysia, Mayanmar,Singapore, India, Singapore and Thailand. Although it has multifaceted use in fragrances industry but globally there are two major market regions for agarwood consumption: 1) The Middle East, countries of Arabian Peninsula and 2)North-east Asia and markets of Taiwan, South Korea and Japan.
When it comes to Bangladesh, industry insiders believe that the fragrance market in the country is now worth over BDT 100 crore where people from middle-income households and students are also opting for expensive perfumes along with rich people. Although we don't have any well-defined industry or any perfume house hailing from our country, there's a considerable number of active and potential customers who're either ready or willing to purchase a fragrance originating in Bangladesh.The only franchise perfume shop in the country is Al Haramain Perfumes Pvt Ltd, the brainchild of Md Mahtabur Rahman, a Bangladeshi expat from Sylhet.
But here exists a tremendous opportunity to create a highly profitable fragrance raw material industry in Bangladesh centring on the cultivation of-"agarwood". Currently, nearly 300 agar-based enterprises involving 25,000-30,000 workers, are producing agar chips, oil and related products in the country. The net return in these enterprises is BDT 0.8 million and per year they're exporting BDT 5.0-100 million.