Sandalwood Oil Market Report and Forecast 2024-2032

Market Outlook

According to this report, the sandalwood oil market size reached a value of USD 135.19 million in 2023. Aided by the increasing demand for natural and aromatic ingredients and the growing applications of sandalwood oil in various sectors, the market is projected to further grow at a CAGR of 8.7% between 2024 and 2032 to reach a value of USD 287.72 million by 2032.

Sandalwood oil, extracted from the wood and roots of the sandalwood tree, is renowned for its aromatic, therapeutic, and medicinal properties. This essential oil is widely used in the perfumery, cosmetics, pharmaceutical, and aromatherapy sectors. The unique scent and diverse benefits of sandalwood oil have made it a valuable ingredient in many products, from high-end perfumes to skincare solutions.

The increasing consumer preference for natural and aromatic ingredients is driving the sandalwood oil market growth. With the growing awareness of the health and wellness benefits associated with natural products, there has been a significant shift towards using plant-based ingredients. Sandalwood oil, known for its calming and healing properties, aligns well with this trend, thereby boosting its demand in various sectors.

Moreover, the expanding applications of sandalwood oil in various sectors play a significant role in propelling the market. In the perfumery sector, sandalwood oil is a key ingredient due to its long-lasting and distinctive fragrance. The rising demand for high-end and natural perfumes is driving the adoption of sandalwood oil. In the cosmetics sector, sandalwood oil is used for its moisturizing, anti-inflammatory, and skin-soothing properties, making it an essential component in skincare and haircare products.

The pharmaceutical sector also benefits significantly from sandalwood oil, which is used for its antiseptic, anti-inflammatory, and sedative properties. The increasing interest in natural and alternative medicines is driving the demand for sandalwood oil in this sector. Additionally, the aromatherapy sector utilises sandalwood oil for its calming and stress-relieving effects, consequently driving up the sandalwood oil market share.

The food and beverage sector also utilises sandalwood oil for its flavouring properties. It is used as a natural flavouring agent in various food products and beverages, adding a unique and exotic flavour. The growing trend of using natural and plant-based ingredients in food and beverages is driving the adoption of sandalwood oil in this sector.

With increasing awareness of environmental sustainability, there is a growing demand for ethically sourced and sustainable sandalwood oil. Companies are adopting sustainable practices and certifications to meet consumer preferences and regulatory requirements. The rising trend of natural and organic products in the cosmetics, perfumery, and pharmaceutical sectors is driving the also demand for sandalwood oil. Consumers are increasingly seeking products with natural ingredients and health benefits.

As per the sandalwood oil market analysis, North American market is driven by the high demand for natural and organic products and the strong presence of key market players. The region's growing interest in aromatherapy and natural wellness solutions further supports market growth.

Europe is another significant market for sandalwood oil, characterised by a strong tradition of using natural ingredients in perfumery and cosmetics. The region's focus on sustainability and environmental protection is driving the demand for ethically sourced sandalwood oil. Countries such as France, Germany, and the United Kingdom are leading the market in this region.

Market Segmentation

The market can be divided based on nature, end use, distribution channel, and region.

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
• Middle East and Africa
• Europe

Competitive landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in global sandalwood oil market. some of the major players explored in the report are as follows:

• 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
• Others