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Sandalwood Oil Market Forecast: Strong Growth Projected Through 2032

Sandalwood Oil Market

Sandalwood Oil Market

Sandalwood Oil Market size was valued at USD 135.12 Million in 2024 and the total Sandalwood Oil revenue is expected to grow at a CAGR of 6.99% from 2025 to 2032, reaching nearly USD 232 Million.

Sandalwood Oil Market Overview:

The sandalwood oil market has grown steadily over the years, driven by its increasing application in personal care, cosmetics, pharmaceuticals, and aromatherapy. Extracted from the heartwood of sandalwood trees, this essential oil is prized for its rich, woody fragrance and therapeutic properties. Its natural calming effects, anti-inflammatory benefits, and role in traditional medicine systems like Ayurveda have contributed to sustained global demand. The market also benefits from rising consumer interest in natural and plant-based products, especially in skincare and wellness applications.

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Sandalwood Oil Market Outlook and Future Trends :

The future of the sandalwood oil market looks promising, with continued demand anticipated across beauty, health, and wellness industries. Emerging trends suggest a shift toward ethically sourced and sustainably produced sandalwood oil as environmental and conservation concerns grow. Moreover, innovations in extraction technology and increased investment in sandalwood cultivation-especially in countries like India and Australia-are expected to boost supply capabilities. The integration of sandalwood oil into luxury perfumes, organic cosmetics, and holistic therapies is likely to further drive market expansion in the coming years.

Sandalwood Oil Market Dynamics:

Several factors are influencing the dynamics of the sandalwood oil market. Rising disposable income and growing awareness of natural wellness solutions are driving consumer preferences for sandalwood-infused products. However, challenges persist, including the high cost of pure sandalwood oil due to limited tree availability and long cultivation cycles. Strict regulations on harvesting and trade, especially for Indian sandalwood, also affect the supply chain. Despite these challenges, producers are turning to plantation-grown sandalwood and synthetic alternatives to meet demand while maintaining quality and sustainability standards.

Sandalwood Oil Market Key Recent Developments:

Recent developments in the sandalwood oil market highlight a growing emphasis on sustainability and innovation. Leading producers have expanded plantation projects in Australia and Southeast Asia to ensure a long-term supply of sandalwood. New distillation methods are being adopted to improve oil yield and purity. In the cosmetics sector, several global brands have launched skincare and fragrance lines enriched with sandalwood oil, promoting its natural healing properties. Additionally, strategic collaborations between local growers and global distributors are helping improve market access while encouraging ethical sourcing practices.

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Sandalwood Oil Market Segmentation:

by Type

Natural
Lab Created

by Application

Personal Care
Pharmaceutical
Aromatherapy

Some of the current players in the Sandalwood Oil Market are:

1. Albert Vieille SAS
2.Doterra International LLC
3.Eden botanicals
4. Santanol Group
5.Plant Therapy Essential Oils
6.Aditi Essentials
7.Haldin International
8.Iangyin Healthway
9.Kanta Enterprises
10.PerfumersWorld Ltd.
11.Ancient Healer
12.Khadi Natural
13.Vedic Vaani
14.Cliara Essential Oils
15.Sallamander Concepts Pty Ltd

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