Sandalwood Market Size, Share, Growth, and Industry Analysis, By Type (Indian Sandalwood, Australian Sandalwood, Others), By Application (Personal Care, Aromatherapy, Pharmaceuticals, Sculpture, Furniture, Others), and Regional Forecast to 2033

SANDALWOOD MARKET OVERVIEW

The global sandalwood market size was USD 311 million in 2025 and is projected to touch USD 543 million by 2033, exhibiting a CAGR of 9.8% during the forecast period.

The sandalwood marketplace is a thriving area pushed by the growing call for its fragrant wood and essential oil across diverse industries, which include cosmetics, prescribed drugs, and private care. Valued for its wealthy, woody perfume and therapeutic properties, sandalwood is extensively utilized in perfumes, incense, and conventional medicines. Rising customer preference for herbal and natural merchandise has in addition boosted its enchantment. Major producers include India, Australia, and Indonesia, with India traditionally being the largest supplier, though sustainability issues and regulatory regulations have shifted sizable manufacturing to Australia. The marketplace is witnessing elevated funding in sustainable plantations and moral sourcing practices to meet growing global call for while preserving sandalwood sources. Additionally, improvements in cultivation strategies and a surge in luxury product applications are expanding marketplace opportunities. Despite challenges together with high costs and deliver obstacles, the sandalwood marketplace is poised for steady boom, supported via increasing attention of its cultural and healing importance.

GLOBAL CRISES IMPACTING SANDALWOOD MARKETCOVID-19 IMPACT

"Sandalwood Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic considerably disrupted the global sandalwood market growth, particularly in 2020. Lockdowns and restrictions for the duration of critical economies introduced about a sharp decline in name for from key sectors along with cosmetics, aromatherapy, and private care, which depend heavily on sandalwood oil and extracts. Manufacturers faced production halts due to deliver chain interruptions and labor shortages, resulting in decreased output and revenue losses. International exchange modified into additionally affected, with journey bans and port closures delaying shipments and growing charges. In India, a chief manufacturer of sandalwood, the pandemic exacerbated current challenges like unlawful logging and overharvesting, in addition straining deliver. These elements collectively added about marketplace volatility and uncertainty, hindering investment and increase in the area. Although name for started out to recover as restrictions eased, the pandemic underscored the want for greater resilient and sustainable practices inside the sandalwood company. ​

LATEST TREND

"Herbal, sustainable, and healing merchandise to Drive Market Growth"

The sandalwood market in 2025 is experiencing sturdy boom, fueled through a global shift closer to herbal, sustainable, and recovery merchandise. Consumers increasingly more pick natural and green ingredients, especially in private care, skin care, and aromatherapy, where sandalwood's calming residences and rich fragrance are particularly valued. This fashion is driving demand for natural sandalwood oil, which holds a dominant market proportion of 70% and is projected to develop at a high CAGR through 2030. The international sandalwood market is expected to increase from USD 292.9 million in 2024 to USD 502.2 million with the resource of 2030, reflecting a CAGR of 9.4%. To meet this growing demand, there's a top notch boom in sustainable sandalwood plantations, especially in Australia and India. However, issues about overharvesting and environmental degradation persist, highlighting the need for responsible sourcing and conservation efforts. Overall, the marketplace's growth is underpinned through the convergence of well-being, luxurious, and sustainability developments.

SANDALWOOD MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Indian Sandalwood, Australian Sandalwood, Others

• Indian Sandalwood: Indian Sandalwood (Santalum album) is quite prized for its wealthy, creamy fragrance and superior oil quality, making it a top class preference for perfumes, incense, and traditional drugs. Native to southern India, it faces demanding situations like overharvesting and strict policies to shield closing sources.

• Australian Sandalwood: Australian Sandalwood (Santalum spicatum) has a softer, greater earthy aroma and is often utilized in aromatherapy, cosmetics, and oil manufacturing. It is sustainably cultivated, especially in Western Australia, and has won popularity due to the declining supply of Indian Sandalwood.

• Others: Other kinds of sandalwood, which include Hawaiian (Santalum paniculatum) and Pacific Island sorts, provide precise fragrance profiles and are mainly used in area of interest perfumes and cultural rituals. These species are less commercially dominant however are valued for specific regional and artisanal uses.

BY APPLICATION

Based on application, the global market can be categorized into Personal Care, Aromatherapy, Pharmaceuticals, Sculpture, Furniture, Others

• Personal Care: Sandalwood is widely utilized in skincare and beauty products for its soothing, anti-inflammatory, and fragrant residences. It seems in gadgets like lotions, creams, soaps, and perfumes.

• Aromatherapy: Sandalwood vital oil is a famous preference in aromatherapy for its calming outcomes, helping to lessen stress, tension, and sell emotional balance. It is regularly subtle or used in rubdown oils.

• Pharmaceuticals: Sandalwood extracts are utilized in traditional and cutting-edge medicine for his or her antiseptic, anti-inflammatory, and antimicrobial benefits. They are included into treatments for pores and skin situations, respiratory problems, and urinary infections.

• Sculpture: Due to its excellent grain, smooth texture, and fragrant wood, sandalwood is noticeably valued for elaborate carvings and non-secular sculptures, mainly in India and Southeast Asia.

• Furniture: Sandalwood’s durability, herbal fragrance, and resistance to termites make it a pricey choice for crafting pinnacle rate furnishings portions. However, its immoderate fee limits its giant use.

• Others: Sandalwood is likewise used in incense sticks, non-secular rituals, and excessive-end fragrances, as well as within the production of specialty handicrafts and ceremonial artifacts.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Rising Demand for Natural and Organic Products Boosting Sandalwood Market Growth to Boost the Market"

The global shift in the direction of herbal, organic, and sustainable substances in cosmetics, personal care, and wellbeing merchandise is riding better demand for sandalwood oil and wooden. Consumers are an increasing number of searching for chemical-free options, making sandalwood a desired choice for its healing and fragrant homes.

"Expansion of Sustainable Sandalwood Plantations Enhancing Supply Chain Stability to Expand the Market"

Efforts to cultivate sandalwood sustainably, especially in Australia and elements of India, are assisting meet growing marketplace needs whilst addressing concerns approximately overharvesting. Investments in managed plantations ensure a constant, moral supply of amazing sandalwood, assisting long-term marketplace growth.

RESTRAINING FACTOR

"High Costs and Limited Supply to Potentially Impede Market Growth"The sandalwood marketplace faces substantial challenges due to the high charges related to actual sandalwood oil and wood, which stem from lengthy maturation intervals and restricted supply. Overharvesting, regulatory restrictions, and illegal change have similarly strained availability, especially for Indian Sandalwood, making it steeply-priced and tough for manufacturers to supply sustainably. This scarcity not simplest limits broader adoption across industries like private care and prescription drugs but also encourages the rise of artificial alternatives, which could gradual the herbal sandalwood market’s growth trajectory despite growing purchaser interest.

OPPORTUNITY

"Luxury Products and Wellness Sectors Creating To Create Opportunity for the Product in the Market"

The sandalwood market is witnessing new possibilities as luxurious brands and wellness industries an increasing number of contain sandalwood into high-quit perfumes, skin care, and healing merchandise. Rising client consciousness about the advantages of natural substances is fueling demand for genuine sandalwood oil across global markets. Expanding packages in aromatherapy, premium cosmetics, and natural drugs are establishing fresh avenues for increase. Additionally, innovations in sustainable plantation practices are making sandalwood cultivation more viable, encouraging long-term investments. Emerging markets in Asia-Pacific and the Middle East also gift promising opportunities because of the sturdy cultural and non-secular importance of sandalwood.

CHALLENGE

"Sustainability Concerns and Regulatory Barriers Could Be a Potential Challenge for Consumers"

The sandalwood marketplace faces severe demanding situations due to sustainability issues, as overharvesting and unlawful alternate have led to the depletion of herbal sandalwood forests, specifically in India. Strict authority’s guidelines on harvesting, trade, and exports in addition complicate marketplace dynamics, limiting supply and increasing expenses. Additionally, the lengthy maturation length of sandalwood timber, frequently taking over 15 years to yield excellent timber, delays returns on funding and discourages new growers. Rising competition from artificial options and the want for big investment in plantation control also create hurdles, making it hard for the market to satisfy unexpectedly developing international demand.

SANDALWOOD MARKET REGIONAL INSIGHTS

• NORTH AMERICA

​ The North American sandalwood market growth is experiencing normal growth, driven by using developing consumer name for herbal and natural products in personal care and properly-being sectors. In 2024, the marketplace became valued at approximately USD 36.2 million and is projected to achieve USD 52.5 million through 2030, growing at a CAGR of 6.4% from 2025 to 2030. The personal care phase, mainly in skin care and aromatherapy merchandise, holds the most important percentage due to sandalwood oil's soothing and anti-inflammatory residences. Additionally, the location's emphasis on sustainable and ethically sourced substances is encouraging manufacturers to adopt responsible sourcing practices, similarly propelling marketplace boom. The U.S. Dominates the North American sandalwood marketplace, accounting for over 80 3% of the close by share in 2024. The market is projected to develop at a CAGR of 6.5% from 2025 to 2030, accomplishing USD 44.0 million with the useful resource of 2030.

• EUROPE

​ The European sandalwood marketplace is experiencing regular growth, driven via growing name for herbal and sustainable substances in private care, cosmetics, and aromatherapy. In 2024, the market changed into valued at approximately USD 45.6 million and is projected to attain USD 61.8 million by means of the usage of 2030, developing at a CAGR of 5.2%. France leads the region, accounting for approximately 42% of the marketplace share, because of its strong fragrance enterprise. Germany and the United Kingdom additionally make a contribution appreciably to the market, driven thru their sturdy non-public care and fitness sectors. The growing choice for ethically sourced and sustainably harvested sandalwood aligns with European clients' eco-aware values, further propelling market increase.

• ASIA

​The Asia-Pacific location is the dominant pressure inside the global sandalwood marketplace, accounting for approximately 60.1% of total revenue with the aid of 2033. This dominance is pushed by way of the large cultivation of sandalwood in countries like India and Australia. India, with its rich cultural historical past, makes use of sandalwood in spiritual rituals, traditional remedy, and premium personal care products. Australia, then again, has emerged as a tremendous manufacturer of sustainable sandalwood, especially Santalum spicatum, through massive-scale plantations. The developing demand for natural and natural products, coupled with growing disposable incomes and a surge in wellbeing tendencies, further propels the market's growth in the vicinity.​

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key enterprise gamers inside the sandalwood market include Quintis (Australia), FPC (Australia), WA Sandalwood Plantations (Australia), and Australian Sandalwood (Australia). These groups are leaders inside the production and sustainable cultivation of sandalwood, in particular in Western Australia, which is known for its giant sandalwood plantations. Their expertise in dealing with sandalwood assets, at the side of their commitment to sustainability and ethical sourcing, has located them at the leading edge of the global sandalwood market, catering to the growing call for at some point of private care, aromatherapy, and perfume industries.

LIST OF TOP SANDALWOOD COMPANIES

• Quintis – (Australia)
• FPC – (Australia)
• WA Sandalwood Plantations – (Australia)
• Australian Sandalwood – (Australia)

KEY INDUSTRY DEVELOPMENT

October 2022: A awesome industrial development inside the sandalwood market is Quintis' establishment of a new sandalwood plantation in Kununurra, Western Australia. In 2022, Quintis planted over one hundred 65,000 Indian sandalwood timber and 476,000 host trees throughout 327 hectares, marking the organization's first new plantings in 5 years. These initiative ambitions to beautify the sustainable supply of Indian sandalwood, a species endangered in the wild because of overharvesting and illegal poaching. The plantation is a part of Quintis' broader strategy to meet the developing international call for sandalwood at the same time as adhering to moral and sustainable practices.

REPORT COVERAGE

The sandalwood marketplace is poised for constant boom, pushed by using growing patron call for herbal and sustainable merchandise across industries which include private care, aromatherapy, and luxury goods. While demanding situations which include sustainability worries, high prices, and restricted deliver remain, ongoing traits in sustainable plantation practices and ethical sourcing are assisting to mitigate these troubles. The Asia-Pacific place, specifically Australia and India, maintains to steer manufacturing, with organizations like Quintis and WA Sandalwood Plantations making huge strides in making sure a sustainable future for the enterprise. Overall, with growing focus of the benefits of sandalwood and innovations in cultivation, the marketplace holds promising possibilities for growth.