From Resinous Wood to Liquid Gold: A Guide to Agarwood Oil Extraction
Agarwood oil, also known as oud or gaharu, is often referred to as "liquid gold" in the perfume and incense industries. But where does this precious oil come from and how do different extraction methods affect its scent profile and therapeutic properties? As a curious human interested in essential oils, I decided to investigate the journey of agarwood from tree to bottle.
The Origin Story of Agarwood Oil
Agarwood forms in the heartwood of aquilaria trees native to Southeast Asia when they become infected with a type of mold. As a defense response, the tree produces a dark resin within its trunk, which is the agarwood that can be distilled into oil. Aquilaria trees must be at least 15-20 years old before resin production occurs, so wild agarwood is very rare and expensive. Over-harvesting also threatens natural habitats. As demand increases, agarwood is now mainly produced on sustainable plantations.

To stimulate resin production, growers will bruise, cut, or infect aquilaria tree trunks with mold spores. The most common species used are Aquilaria malaccensis, Aquilaria crassna, and Aquilaria sinensis. Once sufficient resin builds up after several years, the agarwood is harvested. Darker, denser resins with complex scent profiles are most valuable.
From Wood to Oil - A Journey Through Distillation
The aromatic resins must go through an extraction process to produce essential oil. Here the specific distillation method used determines the final fragrance profile, therapeutic properties, and price. There are three primary types of agarwood oil distillation:
- Steam Distillation
This is the most common modern method. Agarwood chips or powder is placed in a still and slowly steamed at low pressure. The steam causes the resin to release its essential oils which evaporate and condense. This waterless distillation prevents burning and results in a well-rounded, nuanced oil.
- Hydrodistillation
The traditional technique, hydrodistillation uses boiling water to extract essential oils. Agarwood material soaks in hot water which can extract more salt and mineral compounds. The robust aroma is earthy, woody, and intense. However, some notes can be lost.
- CO2 Extraction
No heat is used. Pressurized carbon dioxide acts as the solvent to pull essential oils from agarwood. This yields the purest and most concentrated oil with a delicate, complex aroma. It also preserves more unstable compounds. The downside is it requires very expensive equipment.
Each method has pros and cons in terms of heat, complexity preserved, purity, and final scent. On average, agarwood oils distilled using CO2 extraction fetch the highest prices, followed by steam distillation, with hydrodistillation yielding the most affordable oils.

The Art of the Distiller
Even with the same starting material and extraction method, the distiller's skill makes a huge difference. The timing, temperature, pressure control, and handling of technical nuances can create dramatically different results. A master distiller who optimizes the process to highlight unique aroma notes can almost compose their own version of agarwood oil.
As with wine, the terroir and age of the original resin also affect the final scent profile. Older, wild-harvested agarwood usually has the most sought after fragrance notes. When you consider all these variables, you understand why agarwood oil can range in price from $100 to over $30,000 per kilogram.
Decoding the Scent Profile
So what gives agarwood oil its highly prized fragrance? Over 150 compounds have been identified that provide layers of complex olfactory delight. Some key aroma descriptions include:
- Woody - Primary scent, reminiscent of aged teak or sandalwood
- Balsamic - Sweet, medicinal nuance reminiscent of benzoin resin
- Earthy - Rich, musty aromas like freshly turned soil
- Spicy - Botanical peppery kick, often with clove or cinnamon
- Floral - Sometimes a subtle rose-like bloom
The specific proportion of these compounds, affected by distillation, determines the overall fragrance experience. The aroma is also said to deepen and improve with age, taking on more honey-tobacco notes.
More Than Just a Pretty Scent
Beyond purely aesthetic qualities, agarwood oil has a long history of medicinal and spiritual use in Middle Eastern and Asian cultures. It is believed to provide these benefits:
- Promotes calmness and relaxation
- Eases anxiety and uplifts mood
- Releases stress and tension
- Supports restful sleep
- Boosts immunity
- Soothes digestive issues
- Alleviates pain
- Anti-inflammatory effects
Modern research has identified compounds like sesquiterpenes, phenylethyl chromones, and saponins that provide bioactive properties to support this anecdotal evidence. Much is still unknown about these mechanisms of action in the human body.
Liquid Gold Just Out of Reach
As demand continues to soar, high quality wild-harvested agarwood oils are becoming quite scarce. Prices in recent years have skyrocketed, flocking towards the $30,000 per kilogram range usually only bought by the wealthy. While more sustainable agarwood plantations help meet market needs, the truly exotic vintage oils remain elusive to most buyers except royalty and the most exclusive perfumers.
For those of us who can't afford drops of the pure black gold, more affordable diluted versions work nicely in incense, perfumes, and essential oil blends. The complexity of agarwood continues to inspire fascination and devotion that spans cultures and history. As consumers, appreciating the deep symbiotic relationship between fungi and trees that gives rise to this aromatic treasure represents the mindful reverence agarwood truly deserves.