Rise of Sandalwood Extract: A Natural Ingredient Driving Market Growth

New York, US - September 24, 2025- A new report from The Insight Partners, titled "Sandalwood Extract Market Share, Size, Trends, and Forecast by 2031," provides a comprehensive analysis of the industry's current state and future trajectory. This report is designed to offer crucial insights to business stakeholders, projecting steady growth in market size, share, and innovation over the coming years.

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Key Drivers Fueling Market Expansion

Several factors are contributing to the increasing prominence of sandalwood extract:

• Growing Preference for Natural Personal Care and Cosmetics: Consumers are increasingly moving away from synthetic ingredients and toward natural, plant-based products. Sandalwood extract, with its proven anti-inflammatory, antimicrobial, and soothing properties, has become a highly sought-after component in high-end skincare, lotions, creams, and perfumes. Its natural benefits align perfectly with the clean-label trend in the beauty industry.

• Expansion of the Aromatherapy and Wellness Sector: The therapeutic and calming fragrance of sandalwood is highly valued in aromatherapy. In the wake of global wellness trends, particularly following the pandemic, there has been a significant rise in demand for essential oils and natural products that promote stress relief and relaxation. This has led to a steady increase in the use of sandalwood extract in spas, home wellness products, and alternative medicine practices.

• Shift Towards Organic and Eco-Friendly Products: A broader consumer movement towards organic and environmentally conscious products is bolstering the market for botanical extracts like sandalwood. Brands are reformulating their product lines to incorporate these natural ingredients, addressing growing consumer concerns about synthetic chemicals and environmental sustainability.

• Applications in Pharmaceuticals and Traditional Medicine: Sandalwood extract is utilized in both traditional and modern medicine due to its antiseptic, anti-inflammatory, and even anti-cancer properties. Its use is expanding in the pharmaceutical sector, especially in Asian countries where traditional practices like Ayurveda are deeply influential and have a growing acceptance in mainstream healthcare.

• Broader Awareness of Sandalwood's Benefits: As global awareness of the therapeutic properties of sandalwood grows, so does its application in wellness and spa products. Its calming and soothing effects are highly valued, leading to increased demand for sandalwood-based oils, incense, and creams in wellness centers and resorts, particularly in the Asia-Pacific and Western markets.

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Emerging Trends Shaping the Future

The market's future will be defined by several key trends:

• Ethical and Sustainable Sourcing: Due to historical overharvesting, the industry is placing a strong emphasis on ethical and sustainable practices. Initiatives in countries like India and Australia are promoting controlled plantations and forest rehabilitation. This focus on traceable, eco-friendly, and fair-trade certified sourcing is becoming a priority for both consumers and responsible brands.

• Technological Advancements in Extraction: The adoption of advanced extraction methods, such as supercritical CO2 and fluid extraction, is becoming more widespread. These modern techniques offer higher purity, better yield, and greater efficiency compared to traditional steam distillation, while also minimizing environmental impact. This will lead to more affordable and customized sandalwood products in the future.

• Personalized Beauty Products: The rising consumer demand for personalized beauty and fragrance solutions is creating new opportunities for sandalwood. Its versatile scent and skin benefits make it an ideal ingredient for bespoke formulations, allowing brands to cater to individual preferences and unique needs.

Recent Industry Developments

Leading companies are actively innovating and expanding their operations. For example, Karnataka Soaps and Detergents Limited (KSDL) is strategically planning to extend its presence in European markets by promoting products like Mysore Sandal Soap and shower gels.

Major Market Participants

The market features several key players, including:
• Jiangxi Xuesong
• Jiangxi Jishui Natural Essential Oil Factory
• Sandalwood Forest
• KS and DL
• Essentially Australia
• Katyani Exports
• Naresh International
• RK-Essential Oils Company
• Santol Group

Future Outlook

The outlook for the sandalwood extract market is exceptionally positive. Driven by the confluence of ethical sourcing, sustainable cultivation, and technological innovation, the industry is poised for sustained growth. As consumers continue to prioritize personalized, natural, and eco-friendly products, sandalwood is set to solidify its position as a key ingredient in the premium beauty and wellness sectors, ensuring both environmental and economic viability for years to come.

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About The Insight Partners
Specializing in both syndicated and custom market research, The Insight Partners supports industries such as healthcare, technology, and manufacturing with deep analytical expertise. Its strategic insights help organizations navigate and excel in today's fast-paced global economy.

This release was published on openPR.