Agarwood is used in a variety of ways, including in traditional medicine systems such as Ayurvedic, Tibetan and Traditional East Asian medicine. Its pleasant fragrance makes it popular ingredient of perfumes and tends to be mixed with less expensive carrier oils such as sandalwood. Agarwood is also burned to create incense for example in India, Japan and the Middle East. Less commonly, it can be used as an insect repellant and as an ingredient in wine.
Agarwood is traded in several raw forms including chips (the most common form of raw agarwood in trade), powder, timber pieces, and very occasionally, roots. The price of agarwood depends on a complex set of factors including country of origin and fragrance strength, but not the species that the agarwood is from. Reported wholesale prices for chips have ranged from USD25 to USD1000 per kilogramme in Singapore. Agarwood oil, produced through the steam distillation of agarwood powder, is the most commonly traded processed product
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