The global sandalwood market size was valued at USD 402.24 million in 2024 and is estimated to reach USD 767.96 million by 2033, growing at a CAGR of 7.45% during the forecast period (2025–2033). Due to its anti-inflammatory, antioxidant, and antimicrobial properties, sandalwood is used in alternative medicine and pharmaceutical products. The rise in health-conscious consumers is boosting its application in therapeutic products.
Sandalwood is a type of fragrant wood known for its unique aroma and various uses across different industries. Derived mainly from the Santalum species, particularly Santalum album (Indian sandalwood) and Santalum spicatum (Australian sandalwood), it is prized for its essential oil, which has a rich, smooth, and long-lasting scent.
Sandalwood is widely used in personal care, aromatherapy, cosmetics, and traditional medicine. Moreover, it holds cultural and spiritual significance in many regions, particularly in Asia, where it is integral to religious rituals and ceremonies. The sandalwood market is driven by its applications in producing essential oils, fine perfumes, skincare products, and incense.
Rising demand for natural and organic ingredients
The increasing consumer preference for natural and organic ingredients is a major driver in the global sandalwood market. As awareness grows about the potential risks associated with synthetic additives, more consumers are seeking plant-based, eco-friendly alternatives in personal care, cosmetics, and wellness products.
Sandalwood, known for its calming scent and therapeutic benefits, aligns well with this shift. Therefore, high-end brands, particularly in skin care and aromatherapy, now include sandalwood oil as a key ingredient in products ranging from face creams to luxury perfumes.
This demand for organic ingredients not only benefits consumers but also promotes sustainable sourcing practices, leading companies to invest in responsibly harvested sandalwood. The trend is expected to sustain growth in the sandalwood market, especially in regions with high demand for organic beauty products.
Limited supply and high prices
One of the main restraints in the global sandalwood market is its limited supply, which drives up prices. Sandalwood trees, particularly the highly sought-after Santalum album species, require decades to mature, and overharvesting has led to supply shortages.
These high costs make sandalwood products less accessible, especially for mid-range brands, and limit the ingredient's use to premium segments, thereby slowing market expansion and impacting the affordability of sandalwood-based products.
Expansion in new product segments
The global sandalwood market has significant opportunities for growth as it expands into new product segments beyond traditional uses. Increasing consumer demand for natural ingredients has spurred innovation, leading brands to incorporate sandalwood in products like skincare, wellness supplements, and aromatherapy.
In addition, the fragrance industry is exploring sandalwood in niche perfumery, where its warm, woody notes are highly valued. For example, Australian sandalwood (Santalum spicatum) is increasingly used in wellness-oriented essential oils due to its sustainable sourcing and milder fragrance profile.
These new segments allow companies to differentiate their products and tap into emerging consumer preferences for high-quality, naturally derived options, thereby broadening the market reach and creating substantial growth avenues in both luxury and wellness markets.
ATTRIBUTES | DETAILS |
---|---|
Study Period | 2021-2033 |
Historical Year | 2021-2024 |
Forecast Period | 2025-2033 |
By Type |
|
By Form |
|
By Applications |
|
Regional Insights |
|
Indian Sandalwood (Santalum album) holds a dominant position in the market due to its rich, long-lasting fragrance and its historical importance in both cultural and therapeutic practices. Known for its high quality and potency, Indian sandalwood is highly sought after in perfumery, religious rituals, and high-end skincare products. Its natural aromatic properties make it valuable, often resulting in a premium price and significant demand from consumers and industries globally.
Liquid sandalwood extract, typically derived from essential oils, is a leading form due to its versatility across applications. Sandalwood oil is widely used in personal care and aromatherapy products for its calming, moisturizing, and anti-inflammatory properties. As consumers seek natural and plant-based ingredients, liquid sandalwood is becoming a preferred choice for formulating perfumes, lotions, and wellness products, driving consistent demand in this form.
The personal care segment dominates due to the increasing consumer preference for natural and organic ingredients in skincare and cosmetics. Sandalwood is well-regarded for its skin-soothing properties, making it a popular choice in products like facial creams, body lotions, and cleansers. Many brands highlight sandalwood's benefits for reducing acne, inflammation, and skin aging, and its inclusion in high-end beauty formulations supports demand across this segment.
The Asia-Pacific region holds a dominant position in the global sandalwood market, driven by both high demand and deep-rooted cultural significance. Countries like India and Australia are key players in sandalwood production, with Indian sandalwood (Santalum album) especially prized for its aromatic and medicinal qualities. India, one of the largest consumers and exporters of sandalwood, uses it extensively in traditional medicine, religious rituals, and premium personal care products, contributing to its strong market presence.
On the other hand, Australia has emerged as a significant sandalwood producer (Santalum spicatum), particularly for sustainable, commercial uses. Companies like Quintis, a major Australian producer, have established large-scale plantations to meet global demand, particularly for essential oils used in perfumery and skincare. With the combined production power of India and Australia, along with high local demand across Asia, the region is well-positioned to lead the sandalwood market globally.
Request Table of Contents (TOC), Please Fill below form
Well structured, the insights they shared with us were very helpful and reliable. Their timely assistance make their services invaluable to us. I would highly recommend them and would definitely use them again in the future if needed.
VP of a Automotive division in Germany
The report sent to us was on the point, and its information was quite extensive, well structured, and well researched. More importantly what we valued was your response time and professionalism. As a leading global consulting firm, our clients expect high quality deliverables in short periods of time, so a reliable research partner is essential. For the price that you have charged the quality of your services were exceptional. We look forward to continue our relationship with your team on future engagements
Product Manager at US based Manufacturer
Coherent, high-quality, thoroughly-researched reports. We received a very quick response to all our queries which eventually expedited the entire process
Marketing Manager at a pharma company in Belgium