Sandalwood Oil Market Size, Share, Growth, and Industry Analysis, By Type (Natural, Synthetic) By Application (Cosmetics(Perfumes), Pharmaceuticals, Aromatherapy, Others) Regional Forecast From 2025 To 2034

•   
•   
  

  Request a Free sample to learn more about this report

    

SANDALWOOD OIL MARKET OVERVIEW

The global Sandalwood Oil Market size stood at USD 0.26 billion in 2025, growing further to USD 0.8 billion by 2034 at an estimated CAGR of 13.36% from 2025 to 2034.

The United States Sandalwood Oil Market size is projected at USD 0.08592 billion in 2025, the Europe Sandalwood Oil Market size is projected at USD 0.07318 billion in 2025, and the China Sandalwood Oil Market size is projected at USD 0.06807 billion in 2025.

Sandalwood oil a kind of essential oil which is taken or extracted from the roots and wood of sandalwood tree. This essential oil is used in several perfumes to enhance their fragrance. These oils are derived from the very heart of sandalwood trees. It is extracted through solvent extraction, and, steam distillation. This oil consists of various chemical components. Some of them include beta-santalol and alpha-santalol. All of this has created a lot of demand for this product.

Inclination of people towards, organic, non-synthetic, and chemical free products is increasing the scope for the market. This is considered as the latest trend in the market.

Aromatherapy and ayurveda are two important domains that make use this essential oil as an important product. Numerous health benefits provided by this oil, and its use in various consumer products has contributed in market growth. All of these factors are considered as the driving factors of the sandalwood oil market growth.

KEY FINDINGS

COVID-19 IMPACT

Health Benefits Provided by Sandalwood Oil Increased Market Growth

The pandemic of COVID-19 brought a health crisis in all the nations of the world. Every industry had to go through various challenges during this particular period of time. Lockdowns and strict protocols regarding social distancing norms were strictly imposed. This resulted in the scarcity of raw materials, and non-availability of skilled workforce. 

Apart from being used in perfumes this essential oil is used in various other sectors as they provide amazing health benefits. This essential oil is used from centuries in traditional medicines as they have anti-inflammatory anti-spasmodic, and anti-septic properties. These features are known to have good healing power. As a result, sandalwood oil was increasing used during the period of pandemic in treating patients in a traditional way.

LATEST TRENDS

Growing Popularity of Natural and Organic Products to Increase Market Growth

One of the latest trends that is noticeable in the market is the rising popularity of natural and inorganic products. The preference of people has increased towards naturally-extracted, chemical free substances and products. This has increased the demand for sandalwood oil.

Apart from being used in the treatment of ailments such as coughs, colds, digestive issues, and urinary tract infection, this essential oil is considered to be an important ingredient in skincare products. Sandalwood oil is known for its calming and soothing properties. Increasing awareness of people regarding the harmful effects of synthetic and chemical containing products will further drive the market growth. This is considered as the latest trend in the market. 

• The Asia-Pacific region accounted for ~60% of global sandalwood oil revenue share in 2023, underscoring regional dominance in production and consumption.

• Nearly 70% of global sandalwood oil demand is for natural oil, highlighting strong consumer preference for authenticity over synthetic alternatives.

•   
•   
  

  Request a Free sample to learn more about this report

    

SANDALWOOD OIL MARKET SEGMENTATION

By Type

The market can be divided on the basis of type as follows:

Indian sandalwood oil, and, Australian sandalwood oil. The Indian sandalwood oil segment will be seen dominating the market in the upcoming years.

By Application

Classification based on application is as follows:

Cosmetics (perfumes), pharmaceuticals, aromatherapy, and, others. The cosmetics (perfumes) segment dominates the industry.

DRIVING FACTORS

Incorporation of Sandalwood Oil in Aromatherapy to Accelerate Market Share

One of the main components of aromatherapy is the oil extracted from sandalwood. Aromatherapy is an art of holistic healing with the use of plant extracts that are obtained naturally. Aromatherapy mainly makes use of various types of oils to treat patients. By inhaling the fragrance offered by essential oils, the body can stimulate natural healing process and promote both physical and psychological well-being.

Sandalwood is considered to be a tree with medicinal values. Therefore, it is used very frequently in aromatherapy. The fragrance of sandalwood can help in healing the immune systems of human beings. Changing lifestyle of people has resulted in increased stress, and burden. In order to reduce this unmanageable stress people are using aromatherapy. Rising demand for aromatherapy has in turn increased the demand for essential oils like sandalwood oil. All of these factors are propelling the market growth and development. 

Use of This Essential Oil in Consumer Products to Drive Market Growth

Oil which is extracted from sandalwood has several applications as they are used in many sectors such as personal care, aromatherapy, and pharmaceutical. Another important field where this essential oil is used is ayurveda. Along with all this, this essential oil is also used in the manufacturing of several consumer products.

This essential oil is characterized by a very unique fragrance. Therefore, they are used in the making of several products such as shampoo, hair oils, perfumes, candles, soaps, body washes, and incense sticks. The medicinal as well as the commercial use of this oil will accelerate the demand for the product. All of these factors will amplify the sandalwood oil market share.

• In 2024, the global sandalwood oil market was valued at USD 173.11 million, reflecting substantial baseline demand.

• Natural and organic product appeal contributes to approximately 70% share of usage in cosmetics, pharmaceuticals and aromatherapy applications.

RESTRAINING FACTORS

Limited Availability of Sandalwood to Decline Market Growth

A major problem that is witnessed in the market is inadequate supply of sandalwood. It is not possible to manufacture oils without the supply of ample amount of sandalwood. This tree is not grown in many regions and is highly expensive. Slow growth rates of sandalwood trees in many countries are the major reason for the inadequate supply of sandalwood.

Also, the production of this oil is highly time consuming, and also involves a lot of cost. Extraction of oil from sandalwood requires skilled labors with the right skills. Sandalwood trees require a lot of time to grow up and mature. Many government authorities in several countries have prohibited the deforestation of sandalwood forests. All of these factors can deteriorate the market growth.

• Supply limitations due to sandalwood tree maturity timelines and strict harvesting regulations constrained market growth in 2024.

• High production challenges stem from scarcity of mature raw material, affecting small and medium players’ access to sandalwood oil.

•   
•   
  Request a Free sample to learn more about this report

    

SANDALWOOD OIL MARKET REGIONAL INSIGHTS

Asia Pacific to Dominate Market in Upcoming Years

Asia Pacific is the leading region in the market due to the prevalence of several favorable factors in this region. India which is a part of Asia Pacific accounts for the largest share in the global market for sandalwood oil. As a result, Asia Pacific is considered to be the leading region in the market.

Including India, a few other countries in Asia Pacific have vast expanses of sandalwood forests. Various initiatives taken up the government in this region has led to the increased cultivation and harvesting of sandalwood trees. All of these factors have helped in the growth of the market in Asia Pacific.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Naresh International: Leverages solvent-free extraction technologies to reduce environmental impact.

• Jiangxi Jishui Natural Essential Oil Factory: Expanding production capacity and exploring niche therapeutic and functional food applications.

List of Top Sandalwood Oil Companies

• NARESH INTERNATIONAL
• Jiangxi Jishui Natural Essential Oil Factory
• Essentially Australia
• Meena Perfumery
• Santanol
• New Mountain Merchants
• TFS Corporation
• Karnataka Soaps & Detergents Limited
• Blue Bell Fragrances
• Naresh International
• RK-Essential Oils
• Sandalwood Forest
• Katyani Exports
• Quintis

REPORT COVERAGE

The report provides an insight into the crude oil industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations.