Oud is said to be the most expensive wood in the world with prices over US$10,000/kg for higher quality product. Demand for Oud far exceeds supply and consequently during recent years there has been a boom in planting Oud trees on farms and in plantations, especially in South East Asia.
The consumer market for Oud is well developed in the Middle East and Northeast Asia where Oud has been used for over one thousand years. Taiwan, Singapore, Hong Kong and Bangkok are major traders of Oud while Thailand, Indonesia, Vietnam and Malaysia are major producers. The increasing scarcity of illegal forest Oud makes plantation grown Oud much sought after to meet global demand.
Oud is traded in the form of wood pieces, chips, powder and oil. International trade in Oud is estimated at 6 million kilograms per year but this does not include the trade of other Oud products like oil and incense. The value of Oud re-exported from Singapore alone each year has been estimated to exceed US$1.2 billion. The main importing countries are Taiwan, the UAE, Saudi Arabia and Japan.
Oud smoke (from burning Oud) and oil are used as customary perfume in the Middle East.In Europe, Oud oil is a key component in the perfume M7 by Yves Saint Laurent.