Frankincense is harvested from trees of Boswellia genus, which grow natively in the arid, tropical regions of Northeast Africa, the Arabian Peninsula, and India. Madhya Pradesh, Rajasthan, Gujarat and Maharashtra are the primary growing areas in India. To extract the oil resin undergoes steam distillation. They yield an aromatic product rich in boswellic components. The oil is primarily used in perfumery, incense, aromatherapy, skincare, and spiritual practices.

Frankincense is a wild-harvested resin and supply is being impacted by labour shortages and logistical challenges. There is limited supply of frankincense oil, though it has improved slightly with fresh materials entering the market. There are concerns over quality of the oil with below optimal levels of alpha-thujene. This has reduced the share of premium-grade material. There is heavy demand for the oil in the market with buyers fearing disruptions in supply due to the political instability in Somalia. Pending orders are absorbing any fresh arrivals and concentrated buying is further putting pressure on the tight supply. For the time being prices are expected to remain firm.