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ToggleOud is one of the most expensive scents in the world and is known as Liquid Gold. It has a rich, woody fragrance. It goes back thousands of years and is considered a valuable ingredient in perfumery. It is a popular fragrance, especially in the Middle East and Asia, where it has cultural and spiritual significance. Now, Oud is also gaining popularity among perfume lovers around the globe. This article will tell you all about oud, where it comes from, and how it is used in perfumes. Keep reading!

What is Oud?
The name oud comes from the Arabic word “al-oud,” which means “wood.” Oud is a fragrant oil extracted from the Aquilaria. Also known as the “Agarwood tree,” this species is found in Southeast Asia. A certain type of resin is produced in the heartwood of Aquilaria when the tree is infected with mold. This dark and fragrant resin is collected to make oud oil, which is quite valuable in the perfume industry.
The Oud fragrance is versatile as it has earthy, woody, and smoky notes. Oud perfumes have a very unique smell as it is pungent but pleasing at the same time. Some may find its smell too strong and intoxicating.
However, Agarwood is present in different regions, and the smell of the oud varies according to its origin. Like oud from India has a very earthy and strong aroma, while oud from Cambodia or Laos is sweeter with floral nuances. This complex scent profile makes oud an ideal base note in perfumery.
But why is Oud so expensive?
But you may question: Why is Oud so expensive? This is because finding naturally infected trees is rare. It is estimated that only 10% of wild Aquilaria are infected and produce resin. Due to this, it is difficult to meet the increasing demand for oud, making it a limited resource.
Moreover, the Agarwood trees take years to mature. So, the process of dark resin formation also takes a long time. The extraction of resin from the tree and its conversion to oud perfume is also an effort-consuming task. All these factors contribute to the price of the oud, making it so costly.
Numerous Benefits and Uses of Oud
Oud goes back thousands of years. It has always been considered a precious ingredient in perfumery and traditional culture. It offers various benefits:
- Due to its exotic smell, Oud is an essential ingredient in luxury perfumes.
- Oud has calming properties; this essential oil is also used in aromatherapy to reduce stress, promote relaxation, and improve focus.
- The Agarwood oil is anti-inflammatory and anti-bacterial. Hence, it is really valued in the beauty and wellness industry. Oud fragrance is used in skincare and body care products to give a luxurious feel.
- Other than perfumes, Oud products like candles and diffusers are premium home products.
- In many traditions and cultures, Oud is used in sacred rituals or as incense to create a serene atmosphere.
The Cultural Significance of Oud Perfume
The Middle East, including the UAE and Saudi Arabia, is the greatest consumer of Oud wood perfumes. The region accounts for the majority of the global oud market. According to expert market research reports, the Middle Eastern fragrance market, heavily dominated by oud, was valued at over $3.76 billion in 2024 and continues to grow steadily.
Here Oud is known as “the scent of kings”. For the people in these regions, Oud is more than just a fragrance; it is a part of their culture and traditions. It is a common practice to burn agarwood chips or bakhoor in homes and mosques. Oud oil, or Dehn Al Oud, is a personal grooming essential worn on special occasions like Eid, weddings, etc. Moreover, oud-scented incense is a customary gift to offer to guests to increase the welcoming atmosphere.
In the modern world, the popularity of Oud is continuously rising due to its long-lasting and versatile nature. A report from Fact.MR indicates that the global agarwood oil market is projected to grow from US$ 250 million in 2023 to US$ 450 million by 2033, reflecting a compound annual growth rate (CAGR) of 6%. To meet the growing demand for Oud among perfume lovers, renowned perfume brands have introduced oud perfumes to their collections, bringing this exquisite scent to Western markets.

The Use of Oud In Modern Perfumery
Due to its luxurious smell, Oud has become an important element in modern perfumery. But What Does Oud Perfume Smell Like? The Oud fragrance is rich and complex, which makes it different from other fragrances. It is often described as earthy, woody, and smoky. This scent also has layers of spice, sweetness, and sometimes balsamic or leathery undertones.
But what exactly makes Oud stand out from other scents? In comparison to other woods used in perfumery, such as sandalwood or cedarwood, oud has a darker, more resinous character. While sandalwood is creamy and smooth, and cedarwood is fresh and crisp, oud delivers a strong blend of mystery and luxury that other scents struggle to offer.
When used in a perfume composition, Oud is most often a base note. Unlike lighter perfumes, Oud fragrances are heavy, warm, and long-lasting. Therefore, it remains on the skin longer than usual, making a durable foundation.
How is Oud Oil Extracted from Agarwood for Perfumery
The process of extracting oud oil from agarwood and then making perfume from the essential oil requires a lot of time, which increases the value of this scent. It involves various steps like:
Step 1: Oud oil is extracted from the resinous wood of the Aquilaria tree. However, not all agarwood trees produce resin. Only the ones infested by fungus develop resin as a natural response to the infection. Therefore, the first step is harvesting the infected wood, rich in resin.
Step 2: After harvesting the wood, it is properly cleaned to remove any impurities. The wood is then sorted on the basis of resin content because the wood that has higher resin content yields better-quality oud oil.
Step 3: Once the resin is dried, various distillation processes are used to extract oil.
- Steam Distillation: The best distillation method is using steam to release the resin’s volatile compounds.
- Hydro Distillation: Agarwood chips are boiled in water, and the steam is collected and condensed into oil.
Step 4: The steam or hydro-distillation process separates the oil from the water. The oil floats on top, allowing it to be collected and refined.
Step 5: After Oud oil is collected, it is left to age for several months or even years before being used in perfumery. This maturation process intensifies its rich, woody scent.
Applications of Oud in Perfumery
Oud has a complex scent profile, which makes it an ideal element in perfumery. It is heavy and long-lasting, therefore, Oud is most often used as a base note. Nowadays different brands manufacture perfumes using innovative combinations with Oud for customers who demand something different. Oud pairs with floral notes, spicy notes, and citrus notes to craft unique oud fragrances. Beyond traditional perfumes, oud-infused products like scented candles, shower gels, hair perfumes, etc, are also using oud to add an element of elegance.

Types of Oud in Fragrances
Pure Oud Oil (Dehn Al Oud)
Pure oud oil, known as Dehn Al Oud, is the most authentic form of oud used in perfumery. It is extracted from the fungus-infected wood of the Aquilaria tree, primarily found in Laos, Cambodia, and India.
The scent of pure oud oil is deeply rich with woody, smoky, and earthy notes with slight undertones of sweetness, leather, or spice, depending on its origin. Dehn Al Oud has a very strong fragrance. Therefore, it is often applied directly on the skin in a very small quantity or used as a base note in high-end perfume compositions to make them long-lasting.
Oud-Infused Perfume
Pure oud oil has an intense fragrance, which can be too strong for some people. Therefore, it is combined with floral notes to create a lighter scent profile. The floral, citrus, and spice notes balance the deep, woody, and smoky Oud fragrance, making it more wearable for a broader audience. Oud perfumes are becoming popular in both niche and mainstream fragrance collections because users can apply them on various occasions, from casual daytime wear to formal evening events.
Synthetic Oud: A Sustainable Alternative?
As resinous Agarwood is very rare, oud is now also being created in laboratories to replicate the scent of organic oud without relying on natural agarwood. Perfumers use synthetic oud to meet the demand for oud perfumes while reducing the environmental impact. Also, natural oud fragrance is very expensive, so synthetic oud is a cheaper alternative for those who want to experience the aroma of oud.
SOB: Innovating the Oud Perfume Market
Source of Beauty (SOB Fragrance) is a global leader in wholesale perfume and fragrance. With 28 years of expertise in private label manufacturing (OEM/ODM/OBM), SOB offers custom scent creation and rapid production. SOB facilitates brands with customized solutions, transforming their fragrance visions into market-ready products within as little as seven days. We have a vast inventory of 30 production lines, a daily capacity of 500,000+ bottles, and over 1,000 in-stock SKUs. Hence, you can expect market responsiveness and flexibility. Our oud products and premium oud perfumes offer exceptional quality and long-lasting scents.
Calm Agarwood Absolute
This body mist, for women, adds the ingredient of oud. It brings a warm, woody, spicy smell with a combination of sweetness of vanilla. With the warmth of amber, it also gives a balsamic undertone. Our Scenabella body lotion is one of the best gifts for women due to its deeply sensual aroma.
Starry Night Gift
SOB’s Scenabella Body Care Gift Set offers a blend of Snowberry, Agarwood (Oud), and Iris, providing a product that has an enchanting and long-lasting aroma. The set includes a body mist, hair mist, perfume, and body lotion, making it a perfect indulgence for women.
So, if you are seeking a trusted partner for your perfume business, SOB is here to provide innovative, scalable, and internationally competitive fragrance solutions.
Conclusion
In the world of pefumes, Oud is considered a symbol of luxury and tradition. Its rich history, cultural importance, and exotic aroma have made it a valuable element of fine fragrances globally. As the fragrance industry evolves, perfume manufacturers like SOB continue to innovate, offering a wide range of wholesale perfume products between tradition and modern demands through sustainable practices, customization, and exceptional quality. Partner with us today and bring premium perfumes to your customers!