Global Sandalwood Oil Market By Product (Natural Sandalwood Oil, Synthetic Sandalwood Oil), By Application (Personal Care and Cosmetics, Pharmaceutical, Aromatherapy, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034
- Published date: Jan 2025
- Report ID: 138014
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Report Overview
The Global Sandalwood Oil Market size is expected to be worth around USD 304.5 Million by 2034, from USD 157.7 Million in 2024, growing at a CAGR of 6.8% during the forecast period from 2025 to 2034.
Sandalwood oil is a highly sought-after essential oil derived from the heartwood of the sandalwood tree, particularly Santalum album. Renowned for its rich, woody, and calming aroma, sandalwood oil has been valued for centuries, especially in perfumery, aromatherapy, and traditional medicine.
The sandalwood oil market is a niche segment within the global essential oils industry, with strong demand from sectors such as cosmetics, fragrance, wellness, and pharmaceuticals. Sandalwood oil’s exclusivity and rarity position it as a premium product in the market.
According to the International Council of Forest and Research Education (ICFRE), the global demand for sandalwood stands at around 10,000 metric tons annually, with the USA and France emerging as the largest importers of Indian sandalwood oil.
The global sandalwood oil market is experiencing robust growth, primarily driven by its applications in the fragrance, personal care, and wellness industries. Rising consumer demand for luxury products, natural ingredients, and holistic health solutions is boosting market prospects.
Furthermore, with the increasing interest in aromatherapy and organic skincare, the market is poised to expand significantly in the coming years. Sandalwood’s therapeutic properties, such as its anti-inflammatory, antimicrobial, and sedative effects, are highly sought after, particularly in wellness and alternative medicine.
Governments in key sandalwood-producing regions, such as India, have started investing in the sustainability of sandalwood cultivation to meet global demand while ensuring ecological balance. Regulations on the cultivation and harvesting of sandalwood are becoming stricter, aimed at preventing illegal logging and over-exploitation of natural resources.
Additionally, international regulations, including certifications for organic and sustainable production, offer opportunities for premium pricing, especially as global consumers become more conscious about ethical sourcing.
According to Volza’s India Export data, India accounts for 90% of global sandalwood production, highlighting the country’s pivotal role in the market. Additionally, the price of sandalwood in international markets is consistently 15-20% higher than in domestic markets, with annual price increments of over 25%, according to ICFRE data, reflecting the growing demand and limited supply.
Key Takeaways
- The global Sandalwood Oil market is projected to reach USD 304.5 million by 2034, growing at a CAGR of 6.8% from 2025 to 2034.
- Natural Sandalwood Oil holds a dominant 70.2% share in the market, driven by its superior aroma and long-lasting fragrance.
- The Personal Care & Cosmetics sector leads the sandalwood oil market with a 47.5% share, fueled by the demand for natural and organic ingredients.
- Asia Pacific dominates the Sandalwood Oil market with a 62% share, valued at USD 97.7 million, due to abundant resources in India, Australia, and Indonesia.
Product Analysis
Natural Sandalwood Oil Leads with 70.2% Market Share in 2024, Outpacing Synthetic Alternatives
In 2024, Natural Sandalwood Oil held a dominant position in the By Product Analysis segment of the Sandalwood Oil Market, commanding a significant 70.2% share. The preference for natural sandalwood oil is largely attributed to its superior aroma, longer-lasting fragrance, and its applications in premium skincare, perfumes, and aromatherapy products.
As consumer demand for authentic, sustainable, and eco-friendly products continues to rise, natural sandalwood oil has become the go-to choice for manufacturers and consumers alike.
In contrast, Synthetic Sandalwood Oil, while gaining traction due to its cost-effectiveness and versatility, has remained a distant second, capturing a relatively smaller share of the market. Synthetic alternatives offer a more affordable option and have expanded their presence in lower-cost personal care and household products.
However, despite the growing availability and price advantage, the synthetic variant cannot fully replicate the high-value attributes of its natural counterpart.
Overall, the natural sandalwood oil segment is expected to continue dominating the market due to its premium positioning, while synthetic oil will likely grow in niche markets that prioritize affordability over authenticity.
Application Analysis
Personal Care & Cosmetics Leads Sandalwood Oil Market with 47.5% Share in 2024
In 2024, the Personal Care & Cosmetics sector emerged as the dominant segment in the sandalwood oil market, capturing a substantial 47.5% share. This strong market position can be attributed to the increasing demand for natural and organic ingredients in skincare and beauty products.
Sandalwood oil, renowned for its soothing and anti-inflammatory properties, has become a key ingredient in a wide range of cosmetics, including lotions, perfumes, and creams, further driving its market adoption.
The Pharmaceutical segment follows, holding a notable share due to the therapeutic benefits of sandalwood oil, particularly for its use in treating skin ailments and as an antimicrobial agent.
Aromatherapy is another growing application, with sandalwood oil frequently used in diffusers and essential oil blends for its calming and mood-enhancing effects. The Others category, which includes miscellaneous applications, also contributes to the overall market, though at a smaller scale compared to the leading sectors.
Overall, the widespread consumer preference for natural and multi-functional ingredients in health and wellness products continues to fuel the dominance of the Personal Care & Cosmetics sector, reinforcing its pivotal role in the sandalwood oil market’s growth trajectory.
Key Market Segments
By Product
- Natural Sandalwood Oil
- Synthetic Sandalwood Oil
By Application
- Personal Care & Cosmetics
- Pharmaceutical
- Aromatherapy
- Others
Drivers
Growing Demand for Sandalwood Oil Drives Market Growth in Aromatherapy and Beyond
The growing popularity of sandalwood oil in aromatherapy is a key driver of the market. Known for its calming, stress-relieving, and mood-boosting properties, the oil is increasingly being used in relaxation therapies, spa treatments, and home diffusers.
As people become more conscious of their mental and emotional well-being, the demand for natural products like sandalwood oil is on the rise. Additionally, the fragrance industry contributes significantly to this growth, with sandalwood being a sought-after ingredient in premium perfumes and personal care products. Its distinct, woody aroma is considered luxurious and exotic, which enhances its appeal in high-end fragrance lines.
The skincare sector also plays a pivotal role, as sandalwood oil is widely recognized for its anti-inflammatory, antimicrobial, and skin-soothing properties. These benefits make it a popular choice for inclusion in a variety of skincare products, such as creams, lotions, and oils.
As consumers seek natural and effective solutions for skin concerns, the demand for sandalwood oil continues to climb, especially in the growing trend of holistic and wellness-focused beauty products. The convergence of these factors aromatherapy, fragrance, and skincare—creates a synergistic growth environment for the sandalwood oil market.
Restraints
High Cost of Sandalwood Oil Limits Accessibility and Growth
The high cost of sandalwood oil presents a significant barrier in the market. The extraction process is both labor-intensive and requires specialized techniques, which drives up the overall price of the oil. Unlike many other essential oils, sandalwood oil demands a substantial investment in terms of time, labor, and resources, making it relatively expensive.
As a result, the product remains inaccessible to a larger customer base, limiting its widespread use, especially in industries like cosmetics and aromatherapy where price sensitivity can be a critical factor. Moreover, this high cost can deter new players from entering the market and make it difficult for businesses to scale up production. In addition to cost, the sandalwood industry is also facing challenges around sustainability.
Sandalwood trees take years to mature, and with the increasing demand for the oil, the supply of sandalwood is dwindling. Illegal logging and overharvesting have put further pressure on sandalwood stocks, exacerbating sustainability issues. With limited cultivation areas and slow-growing trees, ensuring a consistent supply of raw material becomes difficult, impacting overall market stability.
These factors combined—high costs and sustainability concerns are major restraints for the sandalwood oil market, preventing it from expanding at a faster pace and potentially leading to price volatility in the future.
Growth Factors
Rising Demand for Sandalwood Oil’s Health Benefits Drives Market Growth
The sandalwood oil market is witnessing significant growth, primarily due to the increasing awareness of its medicinal benefits. Sandalwood oil is renowned for its anti-inflammatory, antimicrobial, and anti-cancer properties, which are driving demand in the wellness and healthcare sectors.
This surge in medicinal applications opens up opportunities for manufacturers to explore new markets, particularly in the aromatherapy, skincare, and pharmaceutical industries. In parallel, advancements in sandalwood oil extraction technologies are improving efficiency and reducing production costs, which can result in more competitive pricing and higher margins for producers.
Moreover, the growing focus on sustainable practices in sandalwood farming provides a vital opportunity for long-term market growth. With the pressure on traditional sources, investing in eco-friendly and sustainable plantations can help ensure a steady supply of high-quality sandalwood, meeting increasing demand while addressing environmental concerns.
By adopting these modern practices, companies can boost profitability, enhance brand reputation, and meet consumer expectations for ethical and sustainable products. Collectively, these factors position the sandalwood oil market for strong growth in the coming years.
Emerging Trends
Sustainable Sourcing of Sandalwood Oil Gains Traction
The sandalwood oil market is seeing a significant shift towards sustainable sourcing, largely due to growing consumer demand for ethically produced products. As awareness about environmental and social issues increases, consumers are actively seeking products that align with their values, pushing businesses to adopt more transparent and responsible sourcing practices.
This trend is also reflected in the rise of eco-friendly and sustainable certifications, with companies emphasizing their commitment to protecting natural resources and supporting local communities.
Additionally, the growth of e-commerce platforms is playing a key role in expanding the market reach of sandalwood oil, as online shopping provides convenient access to a wider range of consumers. Consumers are now able to easily find and purchase sandalwood oil and related products directly from online retailers, further driving demand.
On top of that, the rising popularity of clean-label products, which contain simple, natural ingredients, is contributing to sandalwood oil’s prominence across industries like skincare, aromatherapy, and personal care.
As more people seek transparency and purity in the products they buy, the demand for high-quality, sustainably sourced sandalwood oil continues to grow. This combination of sustainability, e-commerce growth, and clean-label appeal is shaping the future of the sandalwood oil market and is likely to influence industry trends for years to come.
Regional Analysis
Asia Pacific Leads Sandalwood Oil Market with 62% Share Worth USD 97.7 Million
The global sandalwood oil market is witnessing significant growth across various regions, driven by its increasing demand in industries like perfumery, cosmetics, pharmaceuticals, and aromatherapy.
Among these, Asia Pacific stands as the dominating region, commanding a significant share of approximately 62%, valued at USD 97.7 million. This dominance is primarily attributed to the vast natural sandalwood resources in countries like India, Australia, and Indonesia, which are not only key producers but also cater to the rising demand for high-quality sandalwood oil globally.
The growth in Asia Pacific is also fueled by the expanding fragrance and personal care sectors, along with the increasing consumer inclination towards natural and sustainable products. Moreover, the robust traditional use of sandalwood oil in Ayurvedic and holistic therapies has further contributed to the region’s leading position.
Regional Mentions:
In North America, the sandalwood oil market is experiencing steady growth, with a growing preference for natural fragrances and wellness products. The region is expected to witness significant growth in the coming years, driven by demand from the cosmetic and skincare industries, which are increasingly incorporating sandalwood oil for its soothing properties. The U.S. remains the largest consumer in the region, contributing significantly to the market’s value.
Europe is another key market, driven by its large beauty and personal care industry. European consumers’ preference for high-end, sustainable, and organic products is further propelling the demand for sandalwood oil. Countries such as France, Germany, and the UK have become key importers of sandalwood oil, fueling market growth.
The Middle East & Africa and Latin America exhibit moderate growth rates, with increasing interest in aromatherapy, luxury perfumes, and wellness products driving the demand. However, the market share in these regions remains relatively smaller compared to Asia Pacific, North America, and Europe.
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
In 2024, the global Sandalwood Oil Market is characterized by a competitive landscape with key players focusing on strategic initiatives to capitalize on rising demand across diverse industries such as fragrance, cosmetics, aromatherapy, and pharmaceuticals.
Among these, Quintis, Meena Perfumery, and Santanol Group stand out due to their well-established market presence and extensive sourcing capabilities.
Quintis, one of the largest producers of Sandalwood oil, continues to dominate the market with its sustainable harvesting methods and significant investment in cultivation. Its extensive plantation of Australian Sandalwood (Santalum spicatum) allows it to meet the growing demand for both premium and affordable oil, positioning itself as a market leader in terms of production and supply chain integration.
Meena Perfumery and Shubham Natural Fragrances are also noteworthy, focusing on the niche of high-quality, natural sandalwood oil while emphasizing eco-friendly practices. These companies leverage artisanal production methods and specialized extraction techniques, ensuring high-quality products that cater to the growing consumer preference for organic and sustainably sourced ingredients.
Santanol Group continues to enhance its position with a strong foothold in the Australian Sandalwood market, offering oils that meet the regulatory standards of international markets, particularly in Europe and North America. The company is focusing on building long-term relationships with key players in the fragrance and aromatherapy sectors.
Meanwhile, companies like Doterra International LLC and Plant Therapy Essential Oils are capitalizing on the wellness trend, integrating Sandalwood oil into their essential oil product lines for its therapeutic properties. Their emphasis on purity, transparency, and consumer education strengthens their appeal to health-conscious consumers.
As the demand for sandalwood oil increases, these companies are expected to continue innovating in sustainability, product offerings, and global supply chain efficiency to stay competitive.
Top Key Players in the Market
- Quintis
- Meena Perfumery
- Herbo Nutra Extract Private Limited
- RK-Essential Oils
- Sunrise Agriland Development & Research Pvt. Ltd.
- Santanol Group
- CLIARA ESSENTIAL OILS
- Shubham Natural Fragrances
- Shiva Exports India
- Eden Botanicals
- Plant Therapy Essential Oils
- Haldin International
- Aroma Magic
- Doterra International LLC
Recent Developments
- In October 2023, Anima Mundi, a leading player in natural wellness products, acquired Floracopeia, a renowned producer of high-quality essential oils, marking a strategic expansion into the aromatherapy and wellness market.
- In July 2024, Givaudan, the global leader in the fragrance and flavor industry, completed its acquisition of b.kolormakeup & skincare, strengthening its portfolio in the fast-growing cosmetics sector and enhancing its innovation capabilities.
- In November 2023, Orlandi, a prominent global supplier of fragrances and flavorings, acquired Aroma Release Technology Inc.’s Consumer Products Sampling Business, enabling the company to offer cutting-edge scent and flavor sampling solutions to a broader consumer base.
Report Scope
Report Features Description Market Value (2024) USD 157.7 Million Forecast Revenue (2034) USD 304.5 Million CAGR (2025-2034) 6.8% Base Year for Estimation 2024 Historic Period 2020-2023 Forecast Period 2025-2034 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Product (Natural Sandalwood Oil, Synthetic Sandalwood Oil), By Application (Personal Care & Cosmetics, Pharmaceutical, Aromatherapy, Others) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, Australia, Singapore, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Quintis, Meena Perfumery, Herbo Nutra Extract Private Limited, RK-Essential Oils, Sunrise Agriland Development & Research Pvt. Ltd., Santanol Group, CLIARA ESSENTIAL OILS, Shubham Natural Fragrances, Shiva Exports India, Eden Botanicals, Plant Therapy Essential Oils, Haldin International, Aroma Magic, Doterra International LLC Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- Quintis
- Meena Perfumery
- Herbo Nutra Extract Private Limited
- RK-Essential Oils
- Sunrise Agriland Development & Research Pvt. Ltd.
- Santanol Group
- CLIARA ESSENTIAL OILS
- Shubham Natural Fragrances
- Shiva Exports India
- Eden Botanicals
- Plant Therapy Essential Oils
- Haldin International
- Aroma Magic
- Doterra International LLC
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