Sandalwood Oil Market Size, Share, Trends and Forecast by Product, Application, and Region, 2025-2033

Sandalwood Oil Market Size, Share, Trends and Forecast by Product, Application, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A27728

Sandalwood Oil Market Size and Share:

The global sandalwood oil market size was valued at USD 173.11 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 337.48 Million by 2033, exhibiting a CAGR of 7.30% from 2025-2033. The growing demand for natural personal care products, increasing awareness of aromatherapy, and rising disposable income in Asia Pacific are driving the sandalwood oil market in the region.

Report Attribute 
Key Statistics
Base Year
2024
Forecast Years
2025-2033
Historical Years
2019-2024
Market Size in 2024 USD 173.11 Million
Market Forecast in 2033 USD 337.48 Million
Market Growth Rate (2025-2033) 7.30%


The global sandalwood oil market is primarily driven by the rising demand for natural and organic products in the personal care and fragrance industries. Sandalwood oil offers a unique woodsy fragrance in addition to therapeutic properties and makes it highly popular in perfumes, cosmetics, and aromatherapy applications. The demand for this type of wellness oil is growing due to rising awareness about essential oils' possible calming and anti-inflammatory effects along with their antiseptic functions.  Additionally, the shift toward sustainable and eco-friendly products has further boosted sandalwood oil's appeal, as it is often seen as a natural alternative to synthetic ingredients. The expanding use of sandalwood oil in traditional medicine, coupled with its premium pricing, strengthens its market position globally, particularly in regions like North America, Europe, and Asia Pacific.

Sandalwood Oil Market Size

In the United States, the sandalwood oil market is driven by the growing demand for premium, natural, and organic products in the personal care and fragrance industries. Consumers are increasingly seeking sustainable and chemical-free alternatives in cosmetics, skincare, and aromatherapy, which boosts the popularity of sandalwood oil due to its soothing and anti-inflammatory properties. The rise in wellness trends, including using essential oils for stress relief and relaxation, further contributes to its demand. Additionally, the increasing awareness of the benefits of aromatherapy and natural health treatments in the U.S. market is a key factor. For instance, in February 2024, using a transgenic mouse model, researchers at Florida Atlantic University's Schmidt College of Medicine and associates were the first to exhibit in vivo the chemo-preventive qualities of alpha-santalol, a key organic component of sandalwood oil, against the development of prostate cancer. The market is further strengthened by the existence of luxury skincare goods and high-end fragrance brands, which make sandalwood oil a desirable component of formulas for high-end products.

Sandalwood Oil Market Trends:

Rising Demand for Natural and Organic Products

The global shift towards natural, organic, and eco-friendly products drives the sandalwood oil market. As consumers seek chemical-free alternatives in personal care, cosmetics, and wellness products, sandalwood oil’s natural and sustainable appeal has surged. Its therapeutic properties, such as anti-inflammatory, antiseptic, and calming effects, further align with the growing preference for holistic and natural health solutions, increasing its use in aromatherapy, skincare, and luxury fragrances. According to a 2024 study conducted as part of a unique partnership between UF Health Shands and the University of Florida College of Nursing, a small amount of aromatherapy before surgery dramatically lowers blood pressure and pulse rates while also reducing patients' anxiety. The outcomes were so convincing that preoperative aromatherapy treatments are currently being used in all surgery units at UF Health Shands Hospital in Gainesville.

Growing Health and Wellness Trends

The increasing popularity of essential oils in wellness practices, such as aromatherapy and alternative medicine, has expanded the demand for sandalwood oil. Sandalwood oil is well-known for its anti-inflammatory, stress-relieving, and relaxing qualities, which support sleep, relaxation, and mental health. Sandalwood oil has gained popularity in wellness products, self-care regimens, and natural health treatments as more individuals adopt holistic health approaches and look for natural alternatives, driving market expansion. East Indian sandalwood oil has long been a valued ingredient in Ayurvedic medicine. It has also been used by practitioners of traditional Chinese medicine.

Sustainability and Ethical Sourcing

Sustainability is a key factor in driving the global sandalwood oil market. Demand for ethically derived sandalwood oil from sustainable trees has surged as producers and consumers place a greater emphasis on ethical sourcing. Corporations are looking for certified eco-friendly items that aid in conservation. Furthermore, efforts to prevent overharvesting and promote sustainable practices in sandalwood farming have contributed to expanding the market, aligning with broader sustainability trends across industries and attracting environmentally conscious consumers. For instance, in December 2023, to lower its oil import costs, the state-run Karnataka Soaps and Detergents Ltd. (KSDL), which is experiencing a scarcity of sandalwood oil needed for its flagship brand "Mysore Sandal" soap, partnered with 670 farmers for the commercial cultivation of 3,586 acres, mostly in arid areas of north Karnataka, such as Dharwad, Haveri, and Gadag. This falls under the "grow more sandalwood" directive.

Sandalwood Oil Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global sandalwood oil market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on product and application.

Analysis by Product:

  • Natural Sandalwood Oil
  • Synthetic Sandalwood Oil

Natural sandalwood oil leads the market with around 67.5% of market share in 2024. Natural sandalwood oil holds the largest share in the sandalwood oil market due to its high quality, rich aroma, and therapeutic properties. It is widely used in aromatherapy, cosmetics, and traditional medicine for its anti-inflammatory, antimicrobial, and stress-relieving benefits. The growing consumer preference for natural and organic products further boosts demand for natural sandalwood oil. Additionally, natural sandalwood oil, derived from sustainably harvested trees like Santalum album, is prized for its long-lasting scent and versatility in high-end fragrances. As consumers increasingly prioritize authenticity and sustainability, natural sandalwood oil remains the dominant choice in the market.

Analysis by Application:

Sandalwood Oil Market By Application

  • Personal Care and Cosmetics
  • Pharmaceutical
  • Aromatherapy
  • Others

Personal care and cosmetics lead the market with around 46.3% of market share in 2024. The personal care and cosmetics segment holds the largest share in the sandalwood oil market due to its widespread use in skincare, haircare, and fragrance products. Sandalwood oil is prized for its soothing, anti-inflammatory, and moisturizing properties, making it a key ingredient in products targeting sensitive skin, acne, and signs of aging. Its calming aroma also enhances the appeal of luxury perfumes and colognes. With increasing demand for natural and organic beauty products, consumers are drawn to the therapeutic benefits of sandalwood oil, driving its adoption in high-end personal care and cosmetic formulations.

Regional Analysis:

Sandalwood Oil Market By Region

  • North America
    • United States
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East
  • Africa

Asia Pacific is the leading regional market for sandalwood oil, principally driven by multiple factors rooted in cultural, economic, and consumer trends. The region's long-standing cultural traditions towards sandalwood, especially in countries such as India and China, keep alive its demand for conventional utilization in skincare, Ayurvedic medicine, aromatherapy, and religious rituals. The growing trend of using natural and organic products due to rising concerns for health and the environment has placed sandalwood oil marketed as a premium ingredient in personal care, cosmetics, and wellness products. Furthermore, economic growth and a surge in disposable incomes in Asia Pacific have enabled consumers to spend their money on luxury goods, including costly fragrances and therapeutic oils. Also, rising beauty and wellness industries and the increasing interest in holistic health approaches such as aromatherapy are increasing demand. Moreover, the huge sandalwood production in the region leads to competent supply chains that are expected to make the sandalwood oil market in the Asia Pacific flourish. For instance, the world imported 606 cargoes of sandalwood oil between March 2023 and February 2024 (TTM), according to Volza's Global Import data. 223 exporters provided these imports to 276 purchasers worldwide, representing a 12% increase over the previous 12 months. During this time, 44 shipments of sandalwood oil were imported worldwide in February 2024 alone. This represents a 26% sequential increase from January 2024 and a -19% year-over-year growth from February 2023. Most of the the world's sandalwood oil is imported from Indonesia, Australia, and India.

Key Regional Takeaways:
 

North America Sandalwood Oil Market Analysis

The sandalwood oil market in North America significantly relies on the increasing popularity of aromatherapy and holistic wellness. Consumers lean more towards using essential oils including sandalwood oil for stress relief, relaxation, and skin care. The strong fragrance market in the region and the growing demand for luxury personal care products are further facilitating the market growth. Additionally, using natural products in the healthcare sector for stress and inflammatory relief continues to propel this industry. Sustainability and ethical sourcing are also significant in the growth of the market. Moreover, both consumers and manufacturers are moving towards eco-friendliness, contributing to market growth. There is also an increasing preference for sandalwood oil-emulsified in premium candles and home fragrances. This will further boost the sales figures for the North American region.

United States Sandalwood Oil Market Analysis

In 2024, the United States accounted for the market share of over 83.10% in North America. In the United States, the sandalwood oil market is fueled by the growing consumer preference for natural and organic products, particularly within the personal care, cosmetics, and wellness industries. Sandalwood oil is one of the extracts that is used tremendously in the formulation of skincare because of its beneficial properties such as anti-inflammatory, antimicrobial, and moisture-retaining effects, thus being one of the primary ingredients of high-quality beauty products offered for sensitive skin, acne, and anti-aging purposes. It also finds its trails in rich-scented long-lasting habit habit-forming perfumes or aromatic products. Moreover, these growing trends in holistic wellness, with increasing aromatherapy and meditation practices, are driving the demand for sandalwood oil further, especially because it is known to have calming effects in relieving stress. As a tide of awareness among consumers about sustainable and ethical sourcing is rising, companies are incorporating responsibly harvested sandalwood oil. The growing e-commerce platforms and the self-care trend have also favored the widening scopes of access to premium items based on sandalwood oil by American consumers. For instance, as per industry reports, U.S. is the second biggest market for e-commerce globally, with its revenue anticipated to reach around USD 875 billion in 2024.

Europe Sandalwood Oil Market Analysis

The sandalwood oil market in Europe is driven by the increasing preference for natural and organic products in personal care and cosmetics. Because of its calming and anti-inflammatory qualities, sandalwood oil is a popular ingredient in skincare products that consumers are looking for without using chemicals. Demand is further fueled by the region's robust fragrance sector, which focuses on luxury and high-end goods. For instance, as per industry reports, Europe is expected to account for 29% of the growth in the fragrance and perfume market during 2024 to 2028. Growth is further aided by growing knowledge of aromatherapy and essential oils for well-being and relaxation. The demand for ethically derived sandalwood oil is increased by regulatory support for sustainable and ethically sourced components, which aligns with European customers' eco-conscious tastes. Furthermore, sandalwood oil's position in the European market is reinforced by its application in alternative health and wellness activities.

Latin America Sandalwood Oil Market Analysis

In Latin America, the demand for sandalwood oil is driven by the expanding personal care and cosmetics industry.  For instance, as per industry reports, Latin America has become a significant market in the cosmetics industry, projected to reach USD 56.89 billion by 2035. The region is poised to experience substantial growth in beauty and skincare product sales, with Mexico and Brazil serving as key contributors to this expansion. Moreover, the demand for sandalwood oil in cosmetics and haircare formulations is driven by the region's consumers' growing preference for natural and organic products. The popularity of aromatherapy is influenced by growing knowledge of its advantages for mental health. Furthermore, the healing qualities of sandalwood oil are consistent with the cultural preference for holistic and traditional treatments. The desire for high-end, luxury goods containing sandalwood oil is further fueled by the region's expanding middle class and increased disposable income.

Middle East and Africa Sandalwood Oil Market Analysis

In the Middle East and Africa, the sandalwood oil market is driven by its traditional significance in cultural rituals, perfumes, and personal care products. Sandalwood oil is an essential component of the region's thriving fragrance industry, especially for upscale attars and oud-based fragrances. Aromatherapy is becoming more and more popular in the wellness and medical fields as people become more aware of its benefits. The Middle East's growing desire for high-end personal care products and growing disposable income also fuel industry expansion. For instance, as per industry reports, Dubai is a tax-free nation, allowing people to retain 100% of their income, resulting in higher disposable income. The market's changing supply chain dynamics are further highlighted by initiatives to domestically grow sandalwood in Africa in order to satisfy rising demand.

Competitive Landscape:

The sandalwood oil market is characterized by intense competition among key players focusing on quality, sustainability, and innovation. Major companies such as TFS Corporation (Quintis), Santanol Group, and dōTERRA lead the market through their vertically integrated supply chains and investments in sustainable sandalwood cultivation. Whereas smaller producers and regional suppliers cater to niche segments with organic and ethically sourced oils. For instance, as per industry reports, dōTERRA, one of the major sandalwood oil providers, generates sales of USD 2 billion or more annually, reflecting its robust growth in essential oils segment. The market also sees competition from synthetic alternatives, though natural oil remains preferred for premium applications. Additionally, strategic partnerships, product diversification, and expanding applications in aromatherapy, cosmetics, and personal care drive market growth, with sustainability and ethical sourcing being critical differentiators.

The report provides a comprehensive analysis of the competitive landscape in the sandalwood oil market with detailed profiles of all major companies, including:

  • Blossom Kochhar Beauty Products Pvt. Ltd
  • dōTERRA India Private Limited
  • Eden Botanicals
  • Haldin
  • Meena Perfumery
  • Plant Therapy
  • Quintis (Australia) Pty Ltd.
  • R. K. Essential Oils Company
  • Santanol

Latest News and Developments:

  • In December 2024, Karnataka Soaps and Detergents Limited (KSDL) announced plans to revamp its prominent Mysore Sandal Soap line to expand its market foothold in India. The company is set to partner with 480 new distributors, facilitating its entry into previously underutilized regions in the country. This product is said to be the only soap incorporated with 100% pure sandalwood oil.

Sandalwood Oil Market Report Scope:

Report Features Details
Base Year of the Analysis 2024
Historical Period 2019-2024
Forecast Period 2025-2033
Units Million USD
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Product
  • Application
  • Region
Products  Covered Natural Sandalwood Oil, Synthetic Sandalwood Oil
Applications Covered Personal Care and Cosmetics, Pharmaceutical, Aromatherapy, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries  Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Blossom Kochhar Beauty Products Pvt. Ltd, dōTERRA India Private Limited, Eden Botanicals, Haldin, Meena Perfumery, Plant Therapy, Quintis (Australia) Pty Ltd., R. K. Essential Oils Company, Santanol, etc.
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the sandalwood oil market from 2019-2033.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the global sandalwood oil market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the sandalwood oil industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global sandalwood oil market was valued at USD 173.11 Million in 2024.

The global sandalwood oil market is estimated to reach USD 337.48 Million by 2033, exhibiting a CAGR of 7.30% from 2025-2033.

The global sandalwood oil market is driven by increasing demand in perfumery, cosmetics, and aromatherapy due to its therapeutic properties and unique fragrance. Rising awareness of natural and sustainable products, its use in traditional medicine, and expanding applications in personal care and wellness further contribute to market growth.

Asia Pacific currently dominates the global market. The growing demand for natural personal care products, increasing awareness of aromatherapy, and rising disposable income in Asia Pacific are driving the sandalwood oil market in the region.

Some of the major players in the global sandalwood oil market include Blossom Kochhar Beauty Products Pvt. Ltd, doTERRA India Private Limited, Eden Botanicals, Haldin, Meena Perfumery, Plant Therapy, Quintis (Australia) Pty Ltd., R. K. Essential Oils Company, Santanol, etc.

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Sandalwood Oil Market Size, Share, Trends and Forecast by Product, Application, and Region, 2025-2033
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