Why is Oud loved by the fragrance world and why is it so expensive?

Whether its food, jewellery or perfumes, the rarer the ingredients, the more expensive the product. This is the general rule of thumb in the high-end retail world. Basic economic principles classify these as superior or luxury goods. They are expensive, scarce and of the highest quality and this is what attracts demand for them. Possession of such a good can signify ‘superiority’ and prestige.

Let’s take a look at one such good that has taken the fragrance world by storm for years. It is loved by royals and commoners alike and oozes luxury. It’s liquid gold and it’s called Oud.

 

The fragrance of Oud can best be described as warm and woody. The original source of Oud is timber, so a slight hint of dampness is detectable in its scent as well as a touch of smokiness. This aroma has complex and exquisitely layered notes to it and its very name has luxurious connotations. Oud blended with other essential oils results in a beautiful, opulent and unique scent. Oud can come from any of 30 types of agarwood tree species and the various trees within the species create a specific aroma. Therefore, each bottle of oud available at fragrance oil companies will have slightly varied scent according to the region of the species, the techniques used in extraction and age of the tree. Some can be strong and intense while others are soft and sweet.

 

The creation of oud is one of nature’s most fascinating processes. Agarwood trees can become infected with a specific mould called phialophora parasitica. This infection causes the tree to produce a dark resin as a defence mechanism against it. The resin becomes embedded in the tree and produces what we know as oud. The agarwood trees are predominantly found in the Middle East but also grown around the regions of Sri Lanka, India and Indonesia. They are thought to have originated in Assam, India.

 

The use and history of Oud can be dated back to ancient times and cultures. It was, and still is,  Muslim and Hebrew practice to use oud in fumigation of their homes as well as for a personal perfume. Buddhist culture used oud in their numbered beads. Rumour has it that King Louis XIV of France was so fascinated by the scent that he washed his clothes in it.

 

The global market of this expensive timber is today estimated to be worth over £5 billion. The distillation process of agarwood is such that one kilo of it will yield roughly 30-50 millilitres of pure oud oil. 10 kilos of agarwood averages around US $5,000 per kilo excluding distillation expenses, labour costs, spillages or accidents to this figure. Having considered all this, it is not surprising that the cost of one ml of this pure oud retails for approximately US $200 at fragrance oil companies. There are some rare varieties of agarwood whose oil end up costing even more while there are some which are not even used for oil, rather they are sold to be used as incense. This is because the burning of oud oil is associated with the removal of negative and harmful energies in the home. Some believe it to enhance cognitive function believe it will bring a sense of harmony and serenity.

 

These exorbitant prices have not deterred people from seeking to buy this unique fragrance however and as such, agarwood supplies are quickly dwindling. Asian markets and perfume houses cater to collectors and have seen a huge surge in demand during the last few years. This  has meant that the Convention on International Trade in Endangered Species of Wild Fauna and Flora (also known as CITES) committee has had to declare agarwood trees a potentially threatened species. The Botanic Garden Conservation claims that only one in every ten trees produces the authentic resin that pure oud oil is made out of. As the naturally infected agarwood supply is depleting by the minute, producers are growing the trees in other areas of the world. Naturally, however, these have another scent altogether. When it comes to Oud, the older the better and these “knock off” oud oils so to speak are cultivated agarwood and are not quite as old as they need to be. 

 

This beautiful scent is known in the Arab world as ‘Dahn al Oud’, which is loosely translated to ‘the fat of the wood’. Oud was previously dismissed by the Western fragrance oil companies due to the complexity of obtaining it. In recent years however, they have also jumped on the bandwagon and some of the biggest producers in the market such as Christian Dior, Giorgio Armani and Tom Ford had added an oud scent to their lines and collections.

As the available quantity of resin becomes increasingly rare, the price, demand and quality of this cultural scent continues to reign.