Global Sandalwood Oil Market Report and Forecast 2024-2032

Global Sandalwood Oil Market Size

The global sandalwood oil market value reached approximately USD 135.19 million in 2023. The market is further projected to grow at a CAGR of 8.7% between 2024 and 2032, reaching a value of USD 287.72 million by 2032.

Global Sandalwood Oil Market Growth

Sandalwood oil refers to essential oil that is obtained by steam distilling billets and chips derived from the heartwood and roots of the Santalum album. The growth of the sandalwood oil market is driven by its finds applications in various beauty rituals and aromatherapy as it is one of the most popular fragrant essential oils.

The expansion of the personal care sector due to increased emphasis on physical appearance and self-care is boosting the sandalwood oil market growth as sandalwood oil finds applications in acne-treating products due to its skin-clearing and anti-inflammatory properties. The sandalwood oil market dynamics and trends are being enhanced by the oil's benefits, such as removing blemishes, scars, and dark spots, along with its anti-aging and toning properties.

Global Sandalwood Oil Market Analysis

The growing popularity of spas due to increasing stress and hectic lifestyle, rising disposable incomes, and their increasing accessibility is supporting the market expansion as sandalwood oils are widely used in massages and aromatherapy. The oils provide a calming effect and facilitate the reduction of anxiety when applied during massages while enhancing the glow of the skin.

Sandalwood oil has antiseptic, anti-scabietic, diuretic, and antipyretic properties and is also effective in the treatment of dysuria, bronchitis, urinary tract diseases, and cystitis, thus, increasing its utilisation by the pharmaceutical sector and offering lucrative growth to sandalwood oil industry.

Global Sandalwood Oil Industry Outlook

As per the Global Wellness Report, traditional and complementary medicine will see an 8.2% annual growth, highlighting a shift towards holistic health practices from 2022 to 2027. Personal care and beauty products maintain a steady growth trajectory at 5.7%, indicating ongoing consumer investment in grooming and personal wellness. Workplace wellness, though growing at a modest 2.9%, remains crucial as businesses increasingly recognize the importance of employee well-being for productivity further driving the demand of the sandalwood oil market.

As per industry reports, in the United States, 20% of consumers recognise lab-grown, nature-identical ingredients as effective, while 22% perceive them as safe and 21% as trendy, highlighting a growing acceptance and demand for synthetic biology technologies in personal care products. In the United Kingdom, 34% of skincare users express interest in personalised formulas tailored to their individual needs, highlighting a significant market potential for precision medicine in skin care. This preference highlights a rising consumer demand for customised and scientifically advanced beauty solutions, which in turn is likely to boost the growth of the sandalwood industry.

Further, in Germany, 91% of consumers find comfort in using familiar beauty products, indicating a strong preference for established brands and products that provide a sense of reliability and emotional satisfaction. Whereas, in France, 78% of consumers enjoy professional beauty treatments, underscoring the importance of experiential and service-oriented aspects of the beauty market. This trend points to a significant demand for professional care services that enhance the overall beauty experience.

Sandalwood oil's distinctive aroma and therapeutic qualities drive strong demand in the aromatherapy and perfumery sectors.

• Its traditional use in India and Southeast Asia ensures a solid market foundation.

• Sandalwood oil is used in cosmetics, personal care, pharmaceuticals, and food & beverages, driving sandalwood oil market revenue.

The long maturation period of sandalwood trees increases production expenses.

• Overharvesting and illegal logging pose risks to supply.

• Restricted geographical growth areas cause supply bottlenecks.

Rising consumer interest in natural and organic products.

• Growth potential in Asia, Latin America, and Africa.

• Improved cultivation methods can stabilize supply.

Strict regulations on sustainable sourcing and environmental impact.

• Cheaper synthetic substitutes threaten sandalwood oil demand.

• Negative impacts on sandalwood cultivation from changing climate conditions.

Key Players in the Global Sandalwood Oil Market and their Key Initiatives

Plant Therapy Essential Oils

• Launched sustainable sandalwood sourcing partnerships in 2023. 

• Introduced globally certified organic sandalwood oil products to meet the sandalwood oil market market.

Khadi Natural

• Expansion into new international markets for increased global presence.

• Launch of eco-friendly sandalwood oil extraction techniques. 

Santanol

• Expanded sustainable sandalwood plantations to meet rising global demand. 

• Implemented advanced extraction techniques for higher-quality sandalwood oil.

Albert Vieille SAS

• The company invested in advanced sandalwood oil extraction technologies.

• Albert Vieille SAS expanded sustainable sandalwood plantations worldwide to capture the the sandalwood oil market opportunities.

Global Sandalwood Oil Industry Segmentation

“Global Sandalwood oil Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Nature

• Organic

• Synthetic

Market Breakup by End Use

• Personal Care Products and Cosmetics

• Aromatherapy

• Pharmaceuticals

• Household

Market Breakup by Distribution Channel

• Supermarkets/Hypermarkets

• Speciality Stores

• Convenience Stores

• Online

• Others 

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Sandalwood Oil Market Share

Organic sandalwood oil is expected to account for a significant sandalwood oil market share in the coming years. This growth can be attributed to the increasing awareness about the various medicinal benefits associated with the utilisation of the organic sandalwood oil including their usage as an antiseptic and antispasmodic, among others. The rising requirement for organic oils to produce cosmetics and perfumes, among others due to the growing emphasis on physical appearance and grooming is also supporting the growth of the sandalwood oil industry.

Leading Companies in the Sandalwood Oil Market

The companies offers premium, 100% pure essential oils and blends, prioritising safety, transparency, and affordability. The diverse product range includes aromatherapy oils, carrier oils, and natural body care items, all aimed at wellness and holistic health.

• Plant Therapy Essential Oils

• Khadi Natural  

• Santanol  

• Albert Vieille SAS  

• doTERRA International, LLC  

• Quintis (Australia) Pty Ltd.  

• Essential Oils Company  

• Blossom Kochhar Beauty Products Pvt. Ltd.  

• Kanta Enterprises Private Limited  

• Aditi Essentials

Key Highlights of the Report

Sandalwood Oil Market Report Snapshots

Sandalwood Oil Market Size

Sandalwood Oil Market Growth

Sandalwood Oil Market Analysis

Sandalwood Oil Market Share

Sandalwood Oil Companies