Global Sandalwood Market Size, Share & Trends Analysis Report By Form (Liquid, Powder),By Applications (Personal Care, Aromatherapy, Pharmaceuticals, Sculpture & Furniture, Others), By Region (North America, Europe, Asia-Pacific, Latin America, The Middle East and Africa) And Segment Forecasts, 2025 – 2033

Pages : 145
Starting From
USD 1850
Buy Now

Sandalwood Market

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.

Market Overview

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.

Base Year 2024 USD 402.24 million 2033 USD 767.96 million 7.45% Market Size of 2024 Forecast Year Market Size of 2033 CAGR (2025-2033) Sandalwood Market
Download Your Free Sample Report and Make Informed Decisions! Get Your Free Sample Now!

Market Dynamics

Market Drivers

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.

  • For example, the luxury skincare brand Lush uses ethically sourced sandalwood oil in products designed for sensitive skin, showcasing its appeal as a natural and gentle ingredient.

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.

Market Restraint

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.

  • For instance, Indian sandalwood oil, renowned for its quality, can cost between $1,500 to $2,500 per kilogram due to its rarity and high demand.

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.

Market Opportunities

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.

  • For instance, luxury skincare lines are utilizing sandalwood’s anti-inflammatory and soothing properties in creams and serums to cater to consumers seeking plant-based alternatives.

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
  1. Indian
  2. Australian
  3. Others
By Form
  1. Liquid
  2. Powder
By Applications
  1. Personal Care
  2. Aromatherapy
  3. Pharmaceuticals
  4. Sculpture & Furniture
  5. Others
Regional Insights
  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Segmental Analysis

Based on Type

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.

Based on Form

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.

Based on Application

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.

Regional Analysis

Asia-Pacific

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.

Sandalwood Market Regional overview
Download Your Free Sample Report and Make Informed Decisions! Get Your Free Sample Now!

Competitive Landscape

  1. G. Organica
  2. Ahimsa Oils
  3. Essentially Australia
  4. Haihang Industry Co., Ltd.
  5. Mercer International Inc.
  6. Puja Perfumery
  7. Quintis (Australia) Pty Ltd.
  8. The Amber Trail
  9. Veda Oils
  10. India Aroma Oils And Company
  11. Plant Therapy Essential Oils
  12. Edens Garden
  13. Essential Oil Wizardry
  14. Others

Recent Developments

  • February 2024 - The Kerala government's recent budget announcement focuses on boosting sandalwood cultivation, offering significant opportunities for farmers. This initiative aims to support sustainable sandalwood farming by providing financial aid and incentives. Farmers are encouraged to cultivate sandalwood, given its high market value and demand in industries like personal care and aromatherapy.

Sandalwood Market: Segmentation

  1. By Type

    1. Indian
    2. Australian
    3. Others
  2. By Form

    1. Liquid
    2. Powder
  3. By Applications

    1. Personal Care
    2. Aromatherapy
    3. Pharmaceuticals
    4. Sculpture & Furniture
    5. Others
  4. By Regions

    1. North America
    2. Europe
    3. APAC
    4. Middle East and Africa
    5. LATAM

Frequently Asked Questions (FAQs)

What is the projected growth rate of the global sandalwood market?
The sandalwood market is expected to grow at a CAGR of 7.45% from 2025 to 2033, reaching approximately USD 767.96 million by the end of the forecast period.
The growing preference for natural and organic ingredients in personal care, cosmetics, and wellness products, coupled with sandalwood’s anti-inflammatory, antioxidant, and antimicrobial properties, are major drivers in the market.
The Asia-Pacific region leads the market, with India and Australia being major producers due to sandalwood's cultural significance and increasing applications in personal care and wellness products.
Limited supply and high costs are significant challenges due to the slow-growing nature of sandalwood trees, especially Indian sandalwood, impacting affordability and accessibility in mid-range markets.
Companies are investing in sustainable cultivation practices, with Australian companies like Quintis establishing large-scale plantations to meet demand, especially for essential oils used in perfumery and skincare.
Have Any Query? Ask Our Experts
Market Strides have team of professionals that assist you in many advanced industry specific trends, content and tests different strategies and implements the most productive one for the business.

Request Table of Contents (TOC), Please Fill below form

Your personal details are safe with us. privacy

Testimonials

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

Key Topics Covered
  • Market Factors (Including Drivers and Restraint)
  • Market Trends
  • Market Estimates and Forcasts
  • Competitive Analysis
  • Future Market Opportunities
Secured & Verified Premium Quality SSL Certification

Payments Methods