Issue 19

The global fragrance market is expected to reach US$33 billion by 2016, Thailand is in a unique position to capitalise on its market position.

Delve beneath the label of the world’s finest perfumery and you may well discover Oud oil. Made from agarwood resin, this oil can be more expensive than gold, with prices rising as high as US$50,000 for the highest quality perfume. These inflated prices reflect a combination of the depletion of natural resources and heavy demand from markets in the Middle East, the EU and the US. They also represent great business opportunities.

Suadi Arabia is the world’s largest market for Oud oil with imports reaching 5,763 kg in 2013, 250% that of 2012. Thailand alone exported 7,536 kg of Oud oil in 2013, a 65% increase on 2012. The Thai Oud oil export market is valued at approximately US$150 million.

One of the country’s leading producers of Oud oil is the Treedom Group. The company has ten years experience operating with over 120 in house specialists as well as some of the largest manufacturing plants in ASEAN. According to Dr Andrew G. Steel, the Treedom Group’s CEO, Thailand has clear strengths in the production of Oud oil.

“Thailand has key personnel … that understand the production methods of this industry,” he says. “The tree is microclimatic so it only grows in 10 countries around the region. In Thailand, there are optimum conditions for growing the trees. Rainfall is around eight months out of the year and the soil composition is perfect for the production of the Oud oil.”

This year, Treedom plans to target prestigious retailers in the UK as well as the Middle East. The company’s newly opened office in Dubai will aid its goal of pushing its retail brand into Saudi Arabia.

Closer to home, Dr Steel believes that the AEC will have a positive effect on exports. “The AEC creates a level playing field allowing us to use skill sets from across the region,” he says. “The fact that we can share knowledge and infrastructure quite easily gives us a way to move forward in a positive way. It gives us an easy route to expand. We’re already in discussions with Malaysia and Indonesia to set up over there and the AEC will make it easier. Cambodia is an opportunity for us to expand our plantation sector and the emergence of the AEC will make that easier.”

His ultimate vision for Treedom Group is to be the number one deliverer of socially responsible and sustainable forestry related projects and products in Asia. This is why the group has established its own foundation, Plant A Tree Today (PATT).

“Everything we do is ethical from the core of our business,” he says. “We’ve highlighted it not just with ISO accreditation on our factories and plantations but we also have our own charity division, PATT. We hope to achieve one million trees next year in our 10th anniversary. We are close to planting ten times more trees than we use in the manufacturing of our products. The manufacturing of our products is completely sustainable. We don’t cut the trees down, but allow them to grow again.”

Words by: Yvonne Liang