Global Sandalwood Oil Market: Trends & Forecast to 2035
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Global Sandalwood Oil Market By Type (Natural Sandalwood Oil, Lab-created Sandalwood Oil), By Application (Personal Care, Pharmaceuticals, Aromatherapy) And By Geography – Market Size, Opportunities, Trends And Forecast From 2023 to 2035
Report Code: EBI2000167 |
Report Published Date: December 2025
Global Sandalwood Oil Market: Trends & Forecast to 2035
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The Global Sandalwood Oil Market is experiencing steady expansion, driven by rising demand for natural essential oils, premium fragrances, aromatherapy products, and herbal pharmaceuticals. Sandalwood oil, known for its rich woody aroma and therapeutic benefits, holds a premium position across multiple industries, including cosmetics, personal care, wellness, and luxury perfumery. Increasing consumer preference for plant-based, sustainable, and clean-label ingredients is further accelerating market growth globally.
In 2024, the global sandalwood oil market was valued at approximately USD 2.89 billion, reflecting strong demand across both developed and emerging economies. The market’s valuation is supported by increasing use of sandalwood oil in high-end cosmetic formulations, traditional medicines, and aromatherapy applications. Rising disposable income and consumer willingness to spend on premium wellness and fragrance products have also contributed to the market’s strong baseline value in 2024.
The global sandalwood oil market is projected to grow at a compound annual growth rate (CAGR) of around 8.38% from 2025 to 2035. This robust growth outlook is attributed to expanding applications in luxury perfumes, therapeutic oils, pharmaceuticals, and natural skincare products. Additionally, increasing investments in sandalwood plantations and sustainable sourcing initiatives are expected to stabilize supply chains and support long-term market growth through 2035 by USD 7.22 billion.
Regional Analysis: Leading and Fastest-Growing Sandalwood Oil Markets
Asia Pacific: The Leading Regional Market
The Asia Pacific region dominates the global sandalwood oil market, accounting for the largest revenue share in 2024 and expected to maintain its leadership throughout the forecast period. Making it the fastest-growing market globally. This dominance is primarily due to the presence of major sandalwood-producing countries such as India and Australia, along with deep-rooted cultural, medicinal, and religious usage of sandalwood oil. Rapid growth in the natural cosmetics and wellness sectors across China, India, and Southeast Asia further strengthens regional demand.
North America’s Strong Demand for Premium Essential Oils
North America holds a significant share in the global sandalwood oil market, driven by increasing demand for organic, natural, and sustainably sourced essential oils. The region benefits from a well-established aromatherapy, wellness, and luxury fragrance industry, particularly in the US and Canada. Growing consumer awareness regarding the therapeutic benefits of sandalwood oil, including stress relief and skin care benefits, continues to support steady market expansion in North America.
Europe’s Mature but Growing Sandalwood Oil Market
Europe represents a mature yet steadily growing market for sandalwood oil. The region’s growth is fueled by strong demand from the premium fragrance and cosmetics industries, especially in countries such as France, Germany, and the UK. Increasing regulatory emphasis on natural ingredients and clean beauty formulations has encouraged cosmetic manufacturers to incorporate sandalwood oil into high-end skincare and personal care products, supporting consistent market growth.
Product Category Analysis & High-Growth Segments in the Sandalwood Oil Market
Natural Sandalwood Oil Dominates by Type
By type, natural sandalwood oil holds the largest market share in 2024 and continues to dominate due to its superior fragrance profile and therapeutic efficacy. This segment is expected to grow by increasing consumer preference for authentic, plant-derived essential oils. Natural sandalwood oil is widely used in premium perfumes, skincare products, traditional medicine, and aromatherapy, reinforcing its strong market position.
Cosmetics and Personal Care as a Key End-Use Segment
The cosmetics and personal care industry remains the largest end-use segment in the global sandalwood oil market. Sandalwood oil is extensively used in skincare creams, anti-aging formulations, soaps, lotions, and hair care products due to its soothing, anti-inflammatory, and moisturizing properties. The global shift toward clean beauty, herbal cosmetics, and natural skincare solutions continues to drive strong demand from this segment.
Market Drivers & Key Opportunities in the Sandalwood Oil Industry
The global Sandalwood Oil market is primarily driven by the rising demand for natural, plant-based, and premium essential oils across cosmetics, personal care, aromatherapy, pharmaceuticals, and luxury fragrance industries. Increasing consumer awareness regarding the therapeutic, anti-inflammatory, and calming properties of sandalwood oil has significantly boosted its adoption in skincare formulations, wellness products, and alternative medicine. The shift toward clean-label, organic, and sustainable ingredients is further strengthening market growth, particularly in developed economies.
Additionally, the steady expansion of the luxury perfume and high-end cosmetics sector is a major driver supporting the sandalwood oil market. Sandalwood oil is widely used as a base note in premium fragrances due to its long-lasting aroma and fixative properties, making it an essential ingredient for niche and artisanal perfume brands. Rising disposable income and growing preference for bespoke and natural fragrances in Asia Pacific, Europe, and North America continue to create strong growth opportunities.
Market Challenges & Restraints
- High Production Costs of Pure Sandalwood Oil
- Strict Environmental Regulations and Harvesting Restrictions
- Competition from Synthetic and Lab-Created Alternatives
Trending Developments in the Global Sandalwood Oil Market
Rising Focus on Sustainable and Ethical Sourcing:
Market players are increasingly investing in regulated sandalwood plantations, ethical harvesting practices, and traceable supply chains to address raw material scarcity and environmental concerns. Sustainability certifications and government-supported cultivation programs, particularly in India and Australia, are becoming key differentiators for brands operating in the global sandalwood oil market.
Technological Advancements in Extraction and Product Innovation:
The adoption of advanced extraction technologies such as supercritical CO₂ extraction and improved steam distillation is gaining momentum to enhance oil purity, aroma consistency, and yield efficiency. These innovations support the growing demand for premium-grade sandalwood oil in luxury fragrances, clean beauty products, and therapeutic applications.
Competitive Landscape: Leading Global Sandalwood Oil Companies
Key players include:
- Santanol Group
- Quintis (TFS Corporation)
- RK Essential Oils
- AUSTRALIAN SANDALWOOD COMPANY
- Karnataka Soaps & Detergents Limited
- Albert Vieille
- Plant Therapy Essential Oils
- Essential Oils of New Zealand
- Sydney Essential Oil Co
- AOS Products Pvt. Ltd
Global Sandalwood Oil Market, By Region, 2023 - 2035 ($ Million)
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Global Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Global Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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North America Sandalwood Oil Market, By Country, 2023 - 2035 ($ Million)
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North America Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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North America Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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US Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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US Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Canada Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Canada Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Mexico Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Mexico Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Europe Sandalwood Oil Market, By Country, 2023 - 2035 ($ Million)
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Europe Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Europe Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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UK Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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UK Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Germany Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Germany Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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France Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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France Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Italy Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Italy Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Spain Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Spain Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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BeNeLux Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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BeNeLux Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Russia Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Russia Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Nordic Region Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Nordic Region Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Rest of Europe Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Rest of Europe Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Asia Pacific Sandalwood Oil Market, By Country, 2023 - 2035 ($ Million)
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Asia Pacific Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Asia Pacific Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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China Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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China Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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India Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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India Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Japan Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Japan Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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South Korea Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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South Korea Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Thailand Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Thailand Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Australia Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Australia Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Philippines Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Philippines Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Rest of Asia Pacific Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Rest of Asia Pacific Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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South America Sandalwood Oil Market, By Country, 2023 - 2035 ($ Million)
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South America Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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South America Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Brazil Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Brazil Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Argentina Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Argentina Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Rest of South America Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Rest of South America Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Middle East & Africa Sandalwood Oil Market, By Country, 2023 - 2035 ($ Million)
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Middle East & Africa Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Middle East & Africa Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Saudi Arabia Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Saudi Arabia Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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UAE Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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UAE Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Israel Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Israel Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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South Africa Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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South Africa Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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Rest of Middle East & Africa Sandalwood Oil Market, By Application, 2023 - 2035 ($ Million)
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Rest of Middle East & Africa Sandalwood Oil Market, By Type, 2023 - 2035 ($ Million)
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The report includes the global Sandalwood Oil market size and forecast data for the following segments within each of the mentioned countries and regions.
DATA PARAMETERS:
- Historic Years: 2023 to 2024
- Base Year (for Calculation): 2024
- Estimated Year: 2025
- Forecast Years: 2025 to 2035
- Market Size & Forecast Parameter(s): Value ($ Million)
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MARKET SEGMENTS |
COUNTRIES & REGIONS COVERED |
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Sandalwood Oil Market by Type
Sandalwood Oil Market by Application
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GLOBAL North America
Europe
Asia Pacific
South America
Middle East & Africa
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