Sandalwood Oil Market By Product Type (Indian Sandalwood Oil, Australian Sandalwood Oil, Hawaiian Sandalwood Oil, Other Variants), By Application (Cosmetics & Personal Care, Aromatherapy, Pharmaceuticals, Fragrance Industry, Others), By Grade (Premium, Standard Grade, Low-Grade), By Distribution Channel (Direct Sales, Retail Sales, Online Sales), By End-User (Individual Consumers, Beauty & Wellness Centers, Healthcare Providers, Fragrance Manufacturers, Food & Beverage Industry), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Sandalwood Oil Market accounted for USD 182.5 Million in 2024 and is expected to reach USD 388.1 Million by 2035, growing at a CAGR of around 7.1% between 2025 and 2035. The Sandalwood Oil Market continues to advance steadily since the personal care and cosmetics sectors along with the pharmaceuticals and aromatherapy sectors need increasing amounts of this product.

Market expansion has increased substantially because consumers increasingly choose products with natural and organic components in the skincare and wellness categories. Sandalwood oil maintains its market value because of its therapeutic benefits which include anti-inflammatory and antiseptic properties together with calming effects which allow manufacturers to produce perfumes and skincare products and traditional medicine formulations. The increased global recognition of Ayurveda and aromatherapy practices has strengthened its international adoption. Since its high-end base note fragility suits luxury perfumes the sector functions as a principal consumer of sandalwood oil. Future price fluctuations for sandalwood occur due to the scarcity of trees along with regulatory barriers and production expenses.

Report Scope:

Market Dynamics

Growing Consumer Demand for Natural and Organic Personal Care Products

Organic personal care products have become increasingly attractive to consumers so the Sandalwood Oil Market receives substantial market support because of this trend. Rising public understanding of synthetic chemical dangers drives more consumers to select organic and natural beauty items for their skincare needs. The premium skincare world uses Sandalwood oil extensively because its antiseptic and calming properties along with its anti-inflammatory effects make it an impressive ingredient. The combination of its soothing function and anti-aging properties and its ability to fight acne explains why consumers choose Sandalwood Oil as their main holistic skincare solution.

Consumers currently favor clean beauty companies that disclose both their sourcing methods and ingredient authenticity to the public. The organic market extends to haircare products because sandalwood oil acts as a moisturizer and scalp-relieving ingredient. Manufacturers will continue enhancing the Sandalwood Oil Market by using sandalwood oil in various personal care items because consumers value health-minded purchasing choices. Organic and natural product preferences and sustainability concerns converge in the personal care market to make sandalwood oil one of its key ingredients.

Increasing Use of Sandalwood Oil in Aromatherapy and Wellness Treatments

The Sandalwood Oil Market is experiencing expansion because sandalwood oil continues to gain increasing usage in treatment programs for wellness and aromatherapy practices. Sandalwood oil has retained its importance in traditional healing methods because of its ability to calm and reduce stress hence becoming essential for aromatherapy applications. People today rely more on natural essential oils since they provide stress reduction and anxiety management as well as holistic well-being benefits in contemporary lifestyles where mental health matters increasingly. The pale and soft aromas of Sandalwood oil penetrate various products like diffusers as well as massage oils and bath items.

People use sandalwood oil in wellness centers and spas alongside home aromatherapy sets because the oil is believed to deliver mental clarity and relaxation as well as emotional balance. A combination of people practicing mindfulness and adopting holistic well-being solutions drives the rising market need for sandalwood oil. The Sandalwood Oil Market shows promising growth potential because consumers increasingly recognize the advantages of self-care and mental health products so distributors are developing new formulations to satisfy wellness enthusiasts. Sandalwood oil has a strong market growth forecast through the increasing demand for aromatherapy and natural wellness products.

Limited Availability of Sandalwood Trees Due to Overharvesting and Regulations

The Sandalwood Oil Market faces considerable market constraints because sandalwood tree numbers have diminished because of excessive cutting and government-controlled regulations. The Indian sandalwood species including other sandalwood trees acquire decades to reach maturity making the resource growth very slow. The combination of illegal logging and overharvesting has caused the resources of these trees to diminish to such an extent that supply has become restricted. The Sandalwood Oil Market experienced a price surge because of this the product turned into an exclusive commodity unavailable for widespread commercial applications.

The governments of Australia and India have enforced strict regulations to protect their native sandalwood trees and these rules now limit the harvesting and trading practices. Sustainable protective measures implemented by governments affect supply chain operations through their restrictions on tree harvesting even though market needs exceed production capacity. The Sandalwood Oil Market will suffer growth limitations until sustainable cultivation methods and innovative solutions for sustainable sourcing are established across larger production scales due to present sandalwood oil availability problems.

Expanding Applications in Pharmaceuticals for Anti-Cancer and Neuroprotective Treatments

The Sandalwood Oil Market gains substantial potential through increased pharmaceutical applications which include cancer treatment and neuroprotective medications. Research demonstrates that sandalwood oil components especially those present in Indian sandalwood exhibit three main advantages consisting of anti-inflammatory abilities anti-cancer properties and neuroprotective effects. Sandalwood oil demonstrates excellence as a potential substance for drug development that combats cancer cell proliferation while shielding against diseases such as Alzheimer’s and Parkinson’s disease.

The increasing interest of pharmaceutical companies in natural plant-based ingredients for medicine development has turned sandalwood oil into an appealing candidate due to its advantages over synthetic drugs. Expanding Sandalwood Oil Market operations into pharmaceutical applications will receive increased interest due to rising alternative medicine and natural remedy popularity. The market expansion for companies operating within sandalwood oil would be driven by future medical research findings that demonstrate its effectiveness for medical applications. Manufacturers will expand their attention to sandalwood oil as new medical evidence emerges leading to market growth in the sandalwood oil sector.

Rising Popularity of Eco-Friendly and Sustainably Sourced Natural Ingredients

Sustainable natural ingredients with eco-friendly sourcing have emerged as a crucial business opportunity for the Sandalwood Oil Market. The increasing global environmental consciousness drives consumers to choose products that originate from sustainable ethical sources. The rising awareness about natural ingredients resulted in an escalating demand for sandalwood oil because it has become a fundamental component of luxury personal care and wellness products. Sustainable sourcing practices fair-trade certification and environmentally friendly harvesting methods now define how companies in the Sandalwood Oil Market address market demand.

Such practices protect sandalwood tree populations while responding to consumer demand for more transparent and sustainable products they buy. Millennials and members of Gen Z show a willingness to spend extra money when they find products that match their environmental values which creates opportunities for increased market reach. The Sandalwood Oil Market will grow from this environmentally friendly production trend as businesses introduce sustainable supply chains and sustainable product lines.

Industry Experts Opinion

“Australian sandalwood, cherished worldwide for its warm and earthy scent, is at risk of extinction due to overharvesting. Despite its popularity, the species has been significantly over-exploited, leading to a steep decline in wild populations.”

• Richard McLellan, Scientist at Charles Sturt University.

Segment Analysis

Based on Product Type, the Sandalwood Oil Market is primarily driven by the demand for Indian and Australian sandalwood oil. Premier perfume manufacturers along with cosmetics producers and traditional medical facilities use superior quality Indian sandalwood oil because of its aromatic excellence and superior quality. The high price of sandalwood oil stems from strict regulations and limited supply which motivates manufacturers to find ethical procurement methods. The market considers Australian sandalwood oil as a valuable substitute because it offers reliable supplies and a reduced pricing structure. The market shows increased expansion because of the expanding use of these sandalwood variants in personal care and aromatherapy products. The market demand receives additional support from new extraction approaches that enhance both yield quantities and quality standards. Both Australian sandalwood oils and Indian counterparts will expand steadily in the Sandalwood Oil Market because successful natural product tactics gain increased consumer acceptance.

Based on Application, the Sandalwood Oil Market sees significant growth in cosmetics & personal care and aromatherapy. Sandalwood oil serves essential functions including anti-aging effects together with anti-inflammatory properties and moisturization so the cosmetics industry applies this ingredient in premium skincare and haircare products. Rising organic beauty product acceptance by consumers has caused market demand to increase further. Customers choose sandalwood oil in aromatherapy because it reduces stress while providing relaxation which enhances its acceptance for essential oil blends and wellness treatments. Traditional medicine and Ayurveda professions have become more influential which has led to market expansion. Currently, e-commerce platforms provide wider product availability which improves accessibility and leads to enhanced distribution capabilities. Holistic well-being and natural skincare preferences among consumers will guide the future development of the Sandalwood Oil Market through these established applications. 

Regional Analysis

Asia-Pacific is the largest region in the Sandalwood Oil Market, driven by the strong presence of sandalwood cultivation in India, Australia, and Indonesia. The production base of high-quality Indian sandalwood oil belongs to India, but supply constraints emerged due to regulations and dwindling tree populations. Commercial Australian sandalwood plantations have made Australia a primary market contributor by providing continuous supplies of Australian sandalwood oil. The local market consumes large quantities of sandalwood because it appears in cosmetics perfumes and traditional Ayurveda treatments. Traditional medicines and aromatherapy that incorporate sandalwood oil steadily boost the market expansion. Sustainable plantation investments together with improved extraction processing practices create additional production output. The sandalwood fragrance and personal care industries in China and Japan, together with their expanding markets, drive regional leadership in the market. The Sandalwood Oil Market in Asia-Pacific will keep its leadership standing because consumers are increasingly choosing natural and premium ingredients.

North America is the fastest-growing region in the Sandalwood Oil Market, driven by the rising demand for natural ingredients in personal care, cosmetics, and wellness products. The market grows because consumers become increasingly aware of the therapeutic properties of sandalwood oil in aromatherapy alongside its benefits for skincare applications. Para-businesses within the luxury fragrance market throughout the U.S. and Canada consume large amounts of sandalwood oil as a foundational note in their premium products. North American consumers prioritize health-conscious products that align with clean-label principles and organic standards because of this focus. The expansion of e-commerce together with online retail platforms created better market access that encouraged increased sales figures. Research about sandalwood oil's pharmaceutical advantages, including its neuroprotective and anti-inflammatory properties, discloses new medical applications. Sustainability has become a growing priority among consumers, so the Sandalwood Oil Market is predicted to experience significant expansion across North America during the forthcoming years.  

Competitive Landscape

The competitive Sandalwood Oil Market features dominant companies that concentrate on sustainable procurement alongside production innovation coupled with international market expansion. The market leadership of Albert Vieille SAS, Santanol Group, and Doterra International LLC builds from their commitment to high-quality products combined with an extensive product portfolio. The demand growth necessitates companies to invest in sustainable sandalwood cultivation together with ethical supply methods to combat supply shortages. Major companies now aim to profit from changing consumer preferences by infusing sandalwood oil throughout personal care items as well as fragrance products and wellness products. Industry leaders use strategic partnerships with extraction technology innovations and acquisitions as vital methods to increase their market presence in the Sandalwood Oil Market.

The market expansion of regional firms can be attributed to their ability to provide competitive prices together with locally sourced materials along with customized product formulations for specific market segments. Due to expanding e-commerce businesses multiple organizations dedicate themselves to enhancing both their retail distribution and online operation capabilities for customer reach expansion. The Sandalwood Oil Market welcomes new participants who use digital marketing strategies for better brand exposure and interfacing with consumers. To satisfy ethical consumers companies now integrate certifications including organic and fair trade into their products because traceability and transparency continue to become more crucial. Sustained evolution of the competitive landscape in the Sandalwood Oil Market focuses on implementing innovative approaches to sustainability alongside establishing higher consumer trust measures.

Sandalwood Oil Market, Company Shares Analysis, 2024

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Recent Developments:

• In July 2023, ITC's personal care brand Fiama introduced the Sandalwood Oil and Patchouli Gel Bar, featuring actress Rashmika Mandanna as the brand ambassador.

Report Coverage:

By Product Type

• Indian Sandalwood Oil
• Australian Sandalwood Oil
• Hawaiian Sandalwood Oil
• Other Variants

By Application

• Cosmetics & Personal Care
• Aromatherapy
• Pharmaceuticals
• Fragrance Industry
• Others

By Grade

• Premium
• Standard Grade
• Low-Grade

By Distribution Channel

• Direct Sales
• Retail Sales
• Online Sales

By End-User

• Individual Consumers
• Beauty & Wellness Centers
• Healthcare Providers
• Fragrance Manufacturers
• Food & Beverage Industry

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Albert Vieille SAS
• Doterra International LLC
• Eden Botanicals
• Santanol Group
• Plant Therapy Essential Oils
• Aditi Essentials
• Haldin International
• Jiangyin Healthway
• Kanta Enterprises Pvt. Ltd.
• PerfumersWorld Ltd.
• Quintis Pty Ltd
• R. K. Essential Oils Company
• Meena Perfumery
• Lush Natural Oils
• New Mountain Merchants
• TFS Corporation Ltd.

Frequently Asked Questions (FAQs)