First-grade agarwood can cost as much as $100,000 per kilogram. Why is it so expensive? - Business Insider

In order for the aquilaria tree to produce any agarwood, it must first become infected.For thousands of years, agarwood has been known as "The Wood of the Gods." First-grade agarwood can cost as much as $100,000 per kilogram, making it one of the most expensive raw materials in the world. But for this tree to produce any agarwood, it must first become infected with mold.Aquilaria malaccensis is a tree native to the rainforests of southeast Asia.

The Aquilaria's defense to this attack is to produce a stress-induced aromatic resin called aloes, which is dark and moist. Over the course of several years, the aloes slowly embed into the heartwood to create agarwood.For an experienced woodsman, they can look at an Aquilaria tree and predict whether it has agarwood inside or not. Ants bore into the tree trunk, causing a wound and bringing in the microorganisms, bacteria, fungus spores into the trunk of the tree.

In the Nirvana Sutra, aloes is mentioned as a "heavenly wood" used in the cremation of Buddha. In the New Testament, Jesus' body was anointed with a mixture of myrrh and aloes following his crucifixion. And in the Sahih al-Bukhari Hadith, the description of Paradise by Allah's messenger includes the burning of agarwood as incense.

The global market for agarwood is estimated to be worth a staggering $32 billion. But where oud was once so common, high demand has not only increased the price, but also the rate of harvesting and artificial production. By the end of 2029, the market is expected to double to $64 billion.

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