Unlocking the potential of agarwood: A guide to exports from Sri Lanka

Agarwood, a fragrant resinous wood, holds immense cultural and economic significance in Sri Lanka. Used for centuries in incense, perfumes, and traditional medicine, agarwood is deeply intertwined with Sri Lankan traditions and heritage. 

Beyond Sri Lanka’s borders, global demand for agarwood is steadily growing, driven by its diverse applications in various industries. From high-end perfumeries in Europe to traditional medicine practitioners in Asia, agarwood's allure transcends borders. This presents a unique opportunity for Sri Lankan export businesses to tap into the lucrative international agarwood market. 

According to Statista, in 2022, Sri Lanka exported agricultural products worth US$3.34 billion1, demonstrating the nation's capability to export high-value agricultural goods and highlighting the significant potential for Sri Lankan agarwood exporters to tap into this established infrastructure and expertise.

This guide will provide a comprehensive overview of agarwood exports from Sri Lanka, equipping businesses with the resources and know-how needed to navigate the international trade landscape and leverage the services of a global courier service like DHL Express to accelerate their success.

What is agarwood and why is it valuable?

Agarwood is a resinous heartwood that forms in Aquilaria trees when they become infected with a specific type of mold. The tree produces a fragrant resin in response to the infection, and this resin-embedded wood is what we know as agarwood. 

The quality and value of agarwood depend on several factors, including the species of Aquilaria tree, the concentration of resin, the origin, and the harvesting methods. Different grades of agarwood exist, ranging from low-grade wood with minimal resin to highly prized "sinking-grade" agarwood with a high resin content that sinks in water. 

Sustainable agarwood plantations, including those in Sri Lanka, play a crucial role in ensuring the long-term viability of the industry. By cultivating agarwood trees in a controlled environment, these plantations help meet the growing demand while protecting wild populations.

What is the use of Agar wood?

Agarwood's value as a plant export from Sri Lanka stems from its diverse applications across various industries. Its unique fragrance makes it a sought-after ingredient in the perfume industry.

Agarwood is also highly valued for its cultural and religious significance. In many cultures, agarwood is burned as incense during religious ceremonies and spiritual practices. Agarwood chips and powder are used to make incense sticks, cones, and other forms of incense.

Traditional medicine also utilizes agarwood for its perceived therapeutic properties. Agarwood is believed to have anti-inflammatory, analgesic, and sedative effects.

CITES regulations and requirements for agarwood export

Exporting agarwood requires strict adherence to international regulations and obtaining the necessary permits. Sri Lanka has specific restrictions and quotas in place to manage the trade of agarwood and ensure its sustainability. CITES (the Convention on International Trade in Endangered Species of Wild Flora and Fauna) also plays a crucial role in the regulation of the agarwood trade. 

Businesses must obtain the necessary licenses or certifications from relevant authorities in Sri Lanka before the export of agarwood. These may include export permits, CITES permits (if applicable), and phytosanitary certificates for plant exports from Sri Lanka. Understanding and correctly applying the correct agarwood HS shipping codes is also crucial for ensuring smooth customs clearance and accurate duty calculations.

Preparing agarwood for export

Proper harvesting, processing, and storage are essential to maintain the quality of agarwood and meet export standards. Harvesting methods should minimize damage to the tree and ensure sustainable practices. 

Processing techniques vary depending on the desired form of agarwood for export. Raw wood, chips, oil, and finished products like incense sticks all have specific processing and handling requirements. Accurate labeling and documentation are crucial for customs clearance and compliance. Labels should clearly identify the species, origin, and weight of the agarwood. Sustainable packaging materials should also be used to minimize the environmental impact of shipping.

DHL Express services for international agarwood export

DHL Express offers a range of international parcel services tailored to the needs of agarwood exporters. Our expertise in handling valuable and time-sensitive goods, coupled with an extensive shipping network, makes DHL Express a reliable partner for plant exports from Sri Lanka.

Exporters using our international parcel service are able to take advantage of our comprehensive tracking and delivery confirmation for greater peace of mind. As a worldwide service provider, our decades of experience also positions us to facilitate smooth export processes by helping to ensure accurate documentation and compliance with customs regulations, all while providing excellent customer service.

Marketing and promoting agarwood from Sri Lanka

To successfully export agarwood, businesses need to effectively market and promote their products in the international marketplace. Utilizing online platforms, participating in trade shows, and building connections within the agarwood industry can help reach potential buyers. Highlighting the unique qualities and sustainable practices associated with Sri Lankan agarwood can attract discerning buyers seeking high-quality, ethically sourced products.

Beyond these foundational strategies, Sri Lankan agarwood exporters can explore more targeted approaches. For example, collaborating with influencers or bloggers in the fragrance and wellness industries can help raise awareness among specific target audiences. 

Content marketing, such as creating informative blog posts or videos about the origins, uses, and benefits of Sri Lankan agarwood, can attract and engage potential customers. Lastly, developing a strong brand story that emphasizes the cultural heritage and sustainable practices associated with Sri Lankan agarwood can differentiate their products in a competitive market.

Agarwood abroad: Expanding your export network

The global agarwood market presents a significant opportunity for Sri Lankan businesses. By understanding the intricacies of agarwood production, adhering to export regulations, and leveraging the services of a reliable shipping partner like DHL Express, businesses can unlock the full potential of this valuable resource. 

Streamline your export process and take advantage of our expertise and resources in international shipping. Embark on your agarwood export journey by opening a DHL Express business account today and explore the range of services available to support your success.