Is Oud Sustainable? The Truth About Agarwood in 2026

By Houda · My Best Products · June 2026 · 7 min read

That deep, warm, woody smell. The one that follows someone across a room and makes you stop mid-conversation to wonder what they are wearing.

That is oud. And it comes at a cost that most people never think about.

I have been collecting Arabic and oriental fragrances for over a decade. Oud is at the heart of almost everything I love in perfumery. So when I started asking questions about where it actually comes from, and whether buying it is doing real harm, I could not look away from the answers.

Here is what I found.

What Is Oud, Exactly?

Oud comes from a tropical tree called Aquilaria. When the tree gets infected by a specific fungus, it produces a dark, fragrant resin deep inside its wood to protect itself. That resin slowly saturates the heartwood over years, sometimes decades. The result is agarwood, one of the most expensive natural materials on the planet.

Here is the part that makes oud so rare: only around 10% of Aquilaria trees ever produce this resin naturally. The other 90% live and die without creating a single gram of agarwood.

And natural oud oil can cost anywhere from $3,000 to $80,000 per kilogram, depending on quality, origin and age of the resin. For context, that puts it in the same category as gold and some of the rarest spices in the world.

The Honest Answer: Wild Oud Is Not Sustainable

Let me be direct about this, because a lot of perfume brands are not.

A study published in March 2025 in Global Ecology and Conservation analyzed CITES and customs data between 2010 and 2020 and found that around 70% of the global agarwood trade relies on two threatened species: Aquilaria malaccensis and Aquilaria filaria. Between 2010 and 2020, nearly 97% of traded Aquilaria filaria and 57% of traded Aquilaria malaccensis came from wild trees.

Agarwood trade expert Ian Thompson put it plainly: "It's quite clearly not sustainable."

Both of those species are listed as threatened on the IUCN Red List, the global authority on endangered species. Aquilaria crassna and Aquilaria malaccensis are classified as Critically Endangered, while Aquilaria filaria is listed as Vulnerable.

All Aquilaria species have been listed in CITES Appendix II since 1995, which means international trade is monitored and controlled to prevent the species from being driven to extinction. But regulation and enforcement are two very different things.

The gap between what CITES records show and what customs data actually reveals suggests the illegal trade is significantly larger than official numbers indicate.

So Why Is the Industry Still Growing?

Because demand is accelerating faster than conservation efforts can keep up.

The agarwood oil market was valued at $225 million in 2026 and is projected to reach $477 million by 2035, growing at nearly 9% annually. The appetite for oud in luxury perfumery, Middle Eastern culture and now Western fashion is not slowing down.

Saudi Arabia and the UAE are among the largest importers in the world. Wood chips and powder, which make up over 80% of the global agarwood trade, come mainly from Southeast and South Asia, with Indonesia, Thailand, Vietnam, Malaysia, Bangladesh and Laos as the top exporters.

The countries producing the most wild oud are also the ones with the most endangered wild populations. That tension is not going away on its own.

The Good News: Plantation Oud Is Working

Here is where the story gets more hopeful.

Since 2017, the agarwood trade has been increasingly based on plantation-grown sources rather than wild trees, as large-scale cultivation programmes have expanded across the producing regions. This is a real structural shift, not just a marketing talking point.

Vietnam and Malaysia are leading this transition, with plantation oud now accounting for 80 to 90% of their exports. Vietnam alone supplies between 20 and 30% of the world's legal oud supply from cultivated sources.

The way plantation oud works is clever. Farmers plant Aquilaria seedlings and, after several years of growth, artificially inoculate the tree with the same fungus that triggers resin production naturally. The process typically takes five to eight years from planting to the first harvest, with the best quality resin requiring even longer.

Aquilaria crassna is now almost entirely plantation-sourced in international trade, because wild populations of this critically endangered species have declined so drastically that legal alternatives had to take over.

That is not a perfect story. But it is progress.

Does Plantation Oud Smell as Good?

This is the question every serious collector asks, and it deserves an honest answer.

Wild oud from old-growth trees with decades of resin development has a complexity that younger plantation oud simply cannot match yet. Master perfumers can tell the difference. The depth, the way it shifts over hours on skin, the character that feels almost alive — that takes time no plantation can shortcut.

But plantation oud has improved dramatically. And for most people wearing oud-based fragrances, the difference is imperceptible. A well-made plantation oil from a skilled distiller is still one of the most beautiful things you can smell.

High-end perfume houses are increasingly sourcing from certified plantations in Vietnam and securing long-term supply agreements to maintain traceability and quality. That traceability is actually something wild oud often cannot offer.

What About Synthetic Oud?

Synthetic oud, often called oud accord, uses lab-created molecules to approximate the character of natural agarwood. Many Western luxury houses use it either as a substitute or alongside natural oud.

While natural oud oil contains over 367 identified aromatic compounds, synthetic substitutes range from $100 to $500 per kilogram, compared to thousands for natural oil. The price difference is enormous because the complexity is genuinely different.

That said, synthetic oud has gotten remarkably good. Some of the most beloved oud-inspired fragrances in the world, including several you probably own, use synthetic accords as a base. They are consistent, they are cruelty-free, and they place zero pressure on wild Aquilaria populations.

For everyday wear, a high-quality synthetic oud is a completely valid choice. For collectors seeking the real thing, plantation oud is the ethical path.

How to Buy More Consciously

If sustainability matters to you, and I think it should, here is what to look for.

Ask whether the brand can tell you where their oud comes from. Transparency about supply chains is still rare in the fragrance industry, but it is becoming a genuine differentiator. Brands that publish sourcing information are worth supporting.

Look for CITES compliance on natural oud products. Any brand selling genuine natural oud internationally is legally required to show CITES compliance. If they cannot, that is a red flag.

Check the price. Genuine high-quality oud oil is extraordinarily expensive to produce. A perfume claiming to use pure natural oud at a mass-market price almost certainly does not contain what it says.

And consider the format. An Extrait de Parfum with a small amount of high-quality plantation oud will give you a more authentic experience than a cheaper formula that uses a heavy synthetic base, and you will use less of it, making every bottle go further.

The Bigger Picture

The future of oud is plantation-grown, transparently sourced and partly synthetic. Wild oud will always exist at the very top of the market for collectors who know exactly what they are buying and who they are buying it from. But the idea that the industry can keep harvesting from wild forests at current rates, without serious long-term consequences, is no longer defensible.

Researchers are urging stronger monitoring, updated population data, expanded species protection, and a clear shift toward cultivated sources. They also call on consumers and major importing countries to actively support conservation efforts.

As collectors and lovers of this extraordinary ingredient, we have more influence over that future than we often realise. The choices we make, which brands we support, which questions we ask, matter in this market.

Oud took decades to form. The forests that produce it deserve more than a single generation of consumption.

Frequently Asked Questions

Is oud endangered? The Aquilaria trees that produce oud are listed under CITES Appendix II, meaning international trade is monitored and controlled. Several key species used in oud production, including Aquilaria malaccensis and Aquilaria crassna, are classified as Critically Endangered on the IUCN Red List. Wild oud is under serious pressure from overharvesting, but plantation cultivation is providing a growing sustainable alternative.

Is plantation oud as good as wild oud? Wild oud from trees with decades of resin development has a depth and complexity that younger plantation oud cannot fully replicate. However, high-quality plantation oud from skilled distillers is genuinely beautiful and has improved significantly in recent years. For everyday wear and collection building, plantation oud is both an excellent and ethical choice.

How can I tell if my oud perfume uses sustainable ingredients? Look for brands that are transparent about their sourcing, mention plantation-grown or CITES-certified oud, and can demonstrate traceability. If a brand offers no information about where its oud comes from, that is worth noting. A price that seems too low for genuine natural oud is also a reliable signal.

Is synthetic oud a good alternative? Yes, particularly if environmental impact is a priority for you. High-quality synthetic oud accords have become remarkably sophisticated and are used by many respected fragrance houses. They lack the full complexity of natural oud but can be genuinely excellent. Many luxury perfumes blend both plantation oud and synthetics to achieve ethical credibility alongside depth and longevity.

Why does real oud cost so much? Natural oud oil is expensive because the raw material is extraordinarily difficult to produce. Only around 10% of wild Aquilaria trees develop the infection that creates agarwood. Plantation trees require years of careful cultivation before their resin develops quality. The distillation process is slow and labour-intensive, and yields are extremely low — one kilogram of high-resin agarwood may produce only one to two millilitres of oil.

Which countries produce the most sustainable oud? Vietnam and Malaysia are currently considered leaders in sustainable plantation oud, with plantation sources now accounting for 80 to 90% of their exports. Both countries have developed large-scale CITES-compliant cultivation programmes. Thailand has also made significant progress in updating its non-detriment findings, which are required to demonstrate that exports do not harm wild populations.

Written by Houda, perfume collector with over a decade of experience in Arabic, oriental and niche fragrances. Read more about the author.