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July 28, 2025|Chemicals & Materials

13 Biggest Sandalwood Oil Companies in the World | Global Growth Insights

Sandalwood oil has emerged as one of the most sought-after essential oils in the global fragrance, cosmetics, and pharmaceutical industries due to its distinct woody aroma, therapeutic benefits, and rarity. Extracted primarily from the heartwood of sandalwood trees, this oil is highly prized for its high α-santalol content, a compound responsible for its rich olfactory profile and medicinal properties. In 2025, the global sandalwood oil market is witnessing significant momentum driven by rising consumer preference for natural ingredients, growth in wellness and aromatherapy, and expanding end-use sectors such as personal care, perfumery, and ayurvedic health products.

As of 2025, more than 68% of total sandalwood oil demand originates from the cosmetics and personal care segment, driven by premium skincare and anti-aging product formulations. Fragrance companies account for another 21%, leveraging sandalwood oil as a fixative and base note in high-end perfumes. The remaining 11% includes use in traditional medicines, spiritual practices, and pharmaceuticals, where the oil is valued for its anti-inflammatory and antiseptic properties.

India, Australia, and Indonesia dominate the global production landscape, contributing a combined 85% of the world’s sandalwood oil supply. India remains the most traditional producer, with government-regulated harvesting across Karnataka and Tamil Nadu. Australia, led by companies such as Quintis and Santanol, has emerged as a reliable commercial cultivator with a focus on sustainable plantation practices. In 2025, Australian production contributes over 32% of the global volume, reflecting rapid plantation maturity and investment in ethical forestry. Meanwhile, Indonesia’s contribution stands at 14%, mainly from Santalum album trees in East Nusa Tenggara.

However, the market faces structural constraints due to the limited availability of mature sandalwood trees and lengthy cultivation cycles—typically ranging between 15 to 20 years. This supply-demand mismatch continues to drive up prices, with high-grade sandalwood oil retailing between USD 3,000 to USD 4,500 per kilogram depending on purity, origin, and α-santalol concentration.

From a demand-side perspective, North America and Europe collectively consume nearly 47% of global output, primarily in luxury fragrance and cosmetic segments. Asia Pacific, led by India and China, holds approximately 39% of demand, fueled by strong cultural relevance and traditional use. The Middle East and Africa contribute the remaining 14%, especially in perfumery and spiritual rituals.

Environmental concerns and illegal logging in some regions have triggered stricter international regulations and certification requirements. This is encouraging manufacturers to adopt traceable, sustainable sourcing methods and vertically integrated operations to ensure quality, legality, and continuity of supply. Certification standards such as ISO 9235 for natural aromatic raw materials and COSMOS for organic cosmetics are increasingly used by industry players to strengthen market positioning.

In summary, the sandalwood oil market in 2025 is shaped by rising global awareness of wellness, a shift toward premium and natural product, and sustainability-driven supply chains. With its rich cultural legacy and renewed commercial relevance, sandalwood oil is becoming a cornerstone ingredient in the global luxury and wellness economy.

What is Sandalwood Oil? Applications, Grades, and Uses

Sandalwood oil is a distilled essential oil extracted from the heartwood of sandalwood trees, primarily Santalum album (Indian sandalwood) and Santalum spicatum (Australian sandalwood). In 2025, the market distinguishes sandalwood oil by its alpha-santalol content, where premium oils contain over 90% total santalols, making them highly valued in perfumery and pharmaceuticals.

Extraction and Chemical Composition

Sandalwood oil is obtained through steam distillation of heartwood that has matured over 15–20 years. On average, one ton of mature wood yields 30–40 kg of essential oil, with Indian sandalwood producing higher-quality oil rich in α- and β-santalol. According to industry analysis in 2025, Indian sandalwood oil contains up to 60% α-santalol, whereas Australian variants average around 35–40%.

Advanced distillation techniques, including fractional distillation and CO₂ extraction, are employed to retain active compounds without thermal degradation, ensuring pharmaceutical and therapeutic standards are met.

Grades of Sandalwood Oil in 2025

  1. Pharmaceutical Grade
    • Contains >90% total santalols
    • Used in dermatological formulations, wound care, and herbal medicine
    • Represents 13–15% of global market share
  2. Cosmetic/Perfumery Grade
    • Contains 65–90% total santalols
    • Widely used in skincare, haircare, deodorants, and high-end perfumes
    • Accounts for 52% of total global usage
  3. Aromatherapy Grade
    • Contains 50–65% total santalols
    • Utilized in essential oil blends, spa diffusers, and massage oils
    • Comprises 20% of global distribution
  4. Industrial Grade
    • Contains <50% total santalols
    • Used in incense sticks, soaps, and religious applications
    • Shares around 10–12% of total market consumption

Each grade undergoes lab testing for purity, refractive index, specific gravity, and olfactory characteristics before market approval. The premium segment fetches pricing up to 4x higher per kilogram than industrial-grade oils.

Applications in 2025

  1. Cosmetics & Personal Care

Sandalwood oil is used in over 70% of luxury skincare formulations due to its anti-inflammatory and antimicrobial properties. Brands incorporate it in anti-aging creams, serums, and moisturizers targeting acne and eczema. In 2025, sandalwood oil is a key active in more than 650+ new personal care products launched globally.

  1. Fine Fragrance and Perfumery

High santalol content contributes to lasting fixative properties, making it indispensable in perfumes. Major fragrance houses use sandalwood as a base note in nearly 40% of new launches in 2025, often blending with jasmine, rose, and bergamot.

  1. Pharmaceuticals and Medicinal Use

Recognized for its antiviral, antifungal, and antioxidant capabilities, pharmaceutical-grade sandalwood oil is used in topical applications, oral capsules, and vaporizers. In 2025, over 200 registered products in the European and Indian markets contain sandalwood oil for medicinal use.

  1. Aromatherapy and Wellness

Sandalwood is one of the top five oils used in global aromatherapy. Its calming, anxiolytic effects are documented across clinical trials. In 2025, over 28% of U.S. wellness clinics offer sandalwood oil-infused massage or diffuser therapy.

  1. Religious & Cultural Practices

In countries like India, Nepal, Sri Lanka, and Japan, sandalwood oil is integrated into incense, anointing oils, and temple rituals. The global market for religious-grade sandalwood products grew by 21% from 2023 to 2025, largely driven by cultural exports and e-commerce.

  1. Food & Beverage (Minor Use)

While limited, food-grade sandalwood oil is used in flavoring alcoholic beverages and luxury confectionery. Regulatory approvals in Japan and France have enabled this niche market to grow 12% YoY in 2025.

How Big is the Sandalwood Oil Industry in 2025?

The sandalwood oil industry has expanded significantly in 2025, with the global production volume estimated at approximately 90–95 metric tons, distributed across pharmaceutical, cosmetic, aromatherapy, and industrial applications. In terms of output, India and Australia collectively account for over 70% of global supply, with plantation acreage increasing in Australia, Indonesia, and parts of East Africa to meet surging global demand.

The market is experiencing a spike in end-user segments, with the cosmetics and personal care sector consuming around 48 metric tons in 2025, representing more than 50% of total global output. High santalol oil, used primarily in perfumes and anti-aging skincare, has seen a 16% rise in global usage compared to 2023 due to increased adoption by luxury beauty brands.

In pharmaceutical use, the industry has expanded to meet demand in Asia and Europe, where sandalwood oil is formulated into over 230 SKUs of topical dermatology treatments and wellness products. In 2025, pharmaceutical applications account for roughly 11 metric tons, equating to 11.6% of global demand.

Aromatherapy and wellness segments remain robust, especially in North America and Europe. Market data shows that 21 metric tons of sandalwood oil were used for massage therapies, diffuser blends, and mental wellness treatments in 2025. This figure reflects an increase of 19.4% over the past two years, underpinned by consumer migration to natural mood-regulation alternatives.

The industrial and religious-use sectors together account for about 15 metric tons in 2025, with India, Nepal, and the Middle East continuing to be large consumers for incense, soaps, and ceremonial oils. These applications have also benefited from growth in online platforms and exports, particularly into diaspora markets in the U.S. and U.K.

From a pricing standpoint, premium-grade Indian sandalwood oil was valued at USD 3,800 to USD 4,200 per kg in 2025, while Australian sandalwood oil (Santalum spicatum) ranged from USD 1,600 to USD 2,000 per kg depending on purity. The overall price of sandalwood oil rose by 9.2% from 2024 to 2025, owing to tight supply, increased traceability standards, and higher costs of sustainable cultivation.

The U.S. market continues to be the fastest-growing consumer economy for sandalwood oil. In 2025, imports to the U.S. reached approximately 22 metric tons, with 58% of imports sourced from Australian plantations and the remainder from India and Africa. U.S. demand rose by 18.3% over 2023 figures, supported by growth in luxury skincare, niche perfumery, and alternative medicine.

On the supply side, plantation models in Australia, such as those operated by Quintis and Santanol, have reported annual harvesting output of nearly 600 hectares, enough to generate over 10 metric tons of oil per cycle. Indian suppliers have supplemented domestic supply via public-sector units like Karnataka Soaps & Detergents Limited, whose Mysore sandalwood operations are expanding by 15% land area YoY under government-backed sustainability programs.

In summary, the sandalwood oil industry in 2025 is operating at full capacity with multiple regions moving toward value-added extraction, vertical integration, and global certifications. The global industry is expected to remain highly competitive, with over 120 registered distillation and extraction units active in the market and growing investment from wellness-focused conglomerates and natural ingredient suppliers.

Global Distribution of Sandalwood Oil Manufacturers by Country

The sandalwood oil manufacturing landscape in 2025 is marked by a strong geographic concentration in Asia-Pacific and Australia, with emerging players from Africa and South America entering the fray. The total number of commercial sandalwood oil manufacturers globally stands at approximately 135, with varying degrees of scale, output, and vertical integration.

India: Global Production Hub – 36% of Total Manufacturers

India continues to dominate the global sandalwood oil market, hosting over 48 licensed distillation companies, particularly in Karnataka, Tamil Nadu, and Andhra Pradesh. Key players such as Karnataka Soaps & Detergents Limited, Meena Perfumery, Naresh International, and Katyani Exports operate across traditional extraction and modern value chains. The Indian government has eased plantation regulations, resulting in a 32% increase in private cultivator registrations since 2022. In 2025, India accounts for 36% of global sandalwood oil manufacturers and contributes to over 38 metric tons of total annual output.

Australia: Sustainable Plantation Leader – 26% of Total Manufacturers

Australia has emerged as a major player, accounting for 26% of global sandalwood oil producers, equivalent to around 35 companies, with a strong focus on sustainable practices. Quintis and Santanol are leading operators cultivating Santalum album and Santalum spicatum across 7,000 hectares of dedicated plantation land. Together, these companies contribute approximately 24–25 metric tons of oil annually. Australia is also a key exporter to the U.S., Japan, and the E.U., where demand for organically certified oils is on the rise. The country’s government-certified plantations have led to a 45% rise in production volumes from 2020 to 2025.

China: Rapid Market Entrant – 9% of Total Manufacturers

China has made rapid progress with 12–13 sandalwood oil producers as of 2025, representing 9% of the global share. Jiangxi Jishui Natural Essential Oil Factory and other regional distillers have begun blending and formulation activities, often importing raw sandalwood from Africa and Australia. While China does not have native sandalwood plantations at commercial scale, its strength lies in mass-scale blending, perfumery, and cosmetic applications, with demand driven by its personal care and incense industry. Imports of sandalwood oil into China increased by 21% between 2023 and 2025.

Indonesia & Sri Lanka: Legacy Regional Players – 7% Combined Share

Indonesia and Sri Lanka collectively hold 7% of global manufacturing, with approximately 9 companies engaged in steam distillation of Santalum album and Santalum austrocaledonicum. These countries have preserved their sandalwood heritage and operate via community-owned plantations and semi-automated distillation centers. In 2025, combined output from these countries is estimated at 7–8 metric tons annually, mostly for regional and Middle Eastern exports.

Africa (Kenya, Tanzania, Ghana): Emerging Frontier – 6% of Total Manufacturers

Africa is rapidly emerging as a cultivation and supply base, with 7–8 manufacturers primarily in Kenya, Ghana, and Tanzania. Although still in early commercial phases, African plantations occupy over 2,000 hectares under cultivation, with projected harvests beginning by 2027. In 2025, these manufacturers account for 6% of the total count and supply low-volume industrial-grade oil, exported mainly to India and the UAE. Growth initiatives backed by EU-Africa investment partnerships have boosted traceability and fair-trade compliance.

United States & Europe: Refiners and Brand Owners – 8% of Total Manufacturers

While not large-scale cultivators, the U.S. and several European countries (France, Germany, Switzerland) collectively make up 8% of global players, with companies operating as blenders, refiners, and end-product manufacturers. In the U.S., New Mountain Merchants and other essential oil firms specialize in importing high-purity sandalwood oil and repackaging for aromatherapy and personal care brands. These companies are involved more in value-added transformation, with import volumes rising 18.3% YoY.

Sandalwood Oil Market Regional Insights and Market Share

The sandalwood oil market in 2025 exhibits distinct regional characteristics shaped by climate suitability, regulatory frameworks, consumer behavior, and historical relevance. While Asia-Pacific remains the production heartland, consumption trends in North America and Europe are rapidly redefining global demand dynamics. The regional distribution of market share across the global sandalwood oil industry in 2025 is as follows:

Asia-Pacific – 52% Market Share

Asia-Pacific dominates the sandalwood oil landscape in both production and consumption. India and Australia lead as major producers, accounting for over 63 metric tons of global output. India remains the world’s largest consumer of sandalwood oil in spiritual and personal care sectors, using approximately 28 metric tons domestically in 2025. Australia, while export-oriented, is now seeing double-digit domestic growth in skincare, wellness spas, and natural perfumery brands.

China, Indonesia, and Sri Lanka contribute to the regional processing and blending segment. China alone recorded imports of 6.5 metric tons of sandalwood oil, driven by demand from incense, body oils, and aromatherapy businesses. Japan and South Korea, though smaller in output, contribute significantly to demand growth through health supplements and high-end perfumes.

In 2025, regional investments in organic certification, sustainability labels, and traceability technologies have increased by 39% YoY, reinforcing Asia-Pacific’s role in shaping global standards.

North America – 22% Market Share

North America stands as the second-largest consumer region, with the United States leading in premium and therapeutic sandalwood oil adoption. In 2025, the U.S. imported 22 metric tons, up from 18.6 metric tons in 2023, fueled by growth in clean-label cosmetics and natural wellness therapies.

California, Texas, and New York are key consumer states, accounting for almost 50% of U.S. demand due to the concentration of wellness brands, natural perfumeries, and aromatherapy service providers. Sandalwood oil is a primary ingredient in over 800 personal care SKUs launched in the U.S. market in 2025.

Canada, although smaller in scale, contributed to a 6% YoY growth in imports, especially in its organic beauty and spa segment. U.S. manufacturers like New Mountain Merchants and various essential oil companies source primarily from Australia and India, with a rising focus on USDA-certified sandalwood variants.

Europe – 14% Market Share

Europe’s sandalwood oil market is characterized by stringent regulations and high demand for sustainably sourced oils. In 2025, the region’s consumption is estimated at 12–13 metric tons, mostly concentrated in France, Germany, the U.K., and Switzerland.

France continues to be a global hub for high-end perfumery, integrating sandalwood as a base note in over 37% of new luxury fragrance releases. Germany, on the other hand, leads in aromatherapy product launches, having added over 120 new diffuser and therapeutic oil blends featuring sandalwood in 2025.

Europe’s sustainability-conscious consumers have fueled a 28% increase in certified sandalwood oil imports over the past two years. Companies based in the region often procure oil from Australian plantations such as Santanol and Quintis due to traceability guarantees and compliance with EU REACH and COSMOS standards.

Middle East & Africa – 8% Market Share

The Middle East, especially the UAE and Saudi Arabia, holds a significant share in sandalwood oil for ceremonial and perfumery purposes. In 2025, this sub-region consumed 6.5 metric tons, largely in the form of attars, traditional incense, and spiritual oils. Demand for concentrated sandalwood blends surged by 22% compared to 2023, driven by expanding luxury perfume boutiques and religious product manufacturers.

Africa is both a growing producer and a latent consumer. Tanzania and Kenya have established over 2,000 hectares of sandalwood plantations, although output remains limited in 2025. Ghana and Nigeria are expected to begin exporting sandalwood oil commercially by 2027. The Middle East also remains a transshipment zone for sandalwood destined for North Africa.

Latin America – 4% Market Share

Though Latin America represents a smaller segment of the market, demand has seen steady annual growth of 9.6% since 2023. Brazil, Chile, and Mexico account for the majority of regional sandalwood oil usage. In 2025, the region’s total consumption reached approximately 3.2 metric tons.

Brazilian cosmetics giants and natural remedy brands have incorporated sandalwood into over 250 beauty and wellness products, mostly targeting urban millennial consumers. The region’s growing essential oil culture has led to the opening of 15+ new blending and diffuser manufacturing units across Mexico and Colombia in the last two years.

Despite its modest size, the region is also exploring the potential of cultivating Santalum paniculatum hybrids in parts of Brazil and Ecuador, although commercial viability remains in early stages.

Regional Opportunities in Sandalwood Oil Market

The sandalwood oil market in 2025 is undergoing a geographic transformation as both established and emerging regions identify new opportunities for cultivation, distillation, distribution, and product development. While Asia-Pacific remains the supply center, other regions—especially North America, Europe, and Africa—are unlocking new growth avenues in formulation, consumer markets, and sustainable trade.

Australia – Sustainable Cultivation & High-Purity Oil Exports

Australia presents a major opportunity for vertically integrated sandalwood oil production. Companies like Quintis and Santanol are now cultivating over 7,000 hectares of plantation land, primarily of Santalum album and Santalum spicatum, producing 25+ metric tons annually. In 2025, Australia exported sandalwood oil to over 25 countries, with the U.S., Germany, and Japan as major destinations.

Opportunity arises in the pharmaceutical-grade segment, where Australia’s traceability models and low contamination rates have led to a 38% premium in price realization. Partnerships with European pharmaceutical brands and U.S. natural wellness companies continue to expand the high-end product pipeline.

United States – High-Value Consumer Market for Clean Label Products

The U.S. offers substantial opportunity in downstream applications. With 22 metric tons imported in 2025, the U.S. is one of the world’s largest sandalwood oil consumers. Brands are actively positioning sandalwood as a “clean label” natural ingredient, targeting eco-conscious millennials and Gen Z.

In 2025, over 850 U.S. wellness SKUs—from serums and roll-ons to essential oil sets—feature sandalwood oil as a core active. Aromatherapy businesses have expanded into mobile services, corporate wellness programs, and retail outlets, contributing to a 19.8% rise in product launches since 2023. Growth is further supported by the increasing number of spas, with over 22,000 wellness centers across the U.S. offering sandalwood-based services.

India – Value Chain Integration and Government Support

India remains central to sandalwood cultivation and consumption. Despite overharvesting in the past, the Indian government has implemented aggressive plantation programs, particularly in Karnataka, Tamil Nadu, and Andhra Pradesh, covering more than 15,000 hectares in 2025. These programs have received public-private funding and include traceability tags, satellite monitoring, and reforestation efforts.

Domestic companies like Karnataka Soaps & Detergents Limited, Meena Perfumery, and Naresh International are expanding their production lines to include high-value formulations, such as organic perfumery oils and dermatology-grade oils. Export volumes have risen to 11.5 metric tons in 2025, driven by demand from the UAE, U.K., and U.S.

India also has a rapidly growing domestic market, where sandalwood oil is used in over 60% of ayurvedic personal care brands and religious products. The opportunity lies in upgrading from raw oil sales to finished product exports, with higher margins and brand visibility.

China – Blending, Fragrance, and Incense Markets

Although China lacks commercial plantations of Santalum album, it presents one of the most dynamic demand environments for sandalwood oil. In 2025, 6.5 metric tons of sandalwood oil were imported for use in fragrance blending, cosmetics, and traditional incense products.

The opportunity lies in the mid-tier blending and cosmetic OEM manufacturing segment, where Chinese companies can serve as formulation hubs for global brands. With over 250 domestic incense manufacturers and 400 cosmetic brands, China is expected to push further into value-added sandalwood-based offerings, particularly with its rapid digital and D2C channels.

Africa – Plantation Expansion and Export Potential

Africa is poised to become the next major cultivation zone. Kenya, Tanzania, Ghana, and Madagascar are collectively managing over 2,000 hectares of planted Santalum species, with harvestable trees expected by 2027. The climatic compatibility and low land costs provide an opportunity to become low-cost raw material exporters.

Early producers in Ghana and Tanzania have begun trial distillation, with yield rates of 2.5–3.2% oil per kg of heartwood, comparable to Indian and Australian varieties. Investment from EU-based fair trade partners and support from agricultural ministries are fast-tracking commercial scalability. Africa’s opportunity lies in being a plantation-led supplier to EU and Middle Eastern markets, especially for industrial and fragrance-grade oil.

Europe – Sustainable Branding and Regulatory Compliance

Europe, despite limited cultivation, has a robust role in formulation, branding, and retail of sandalwood oil products. Countries like France and Germany are major hubs for fine fragrance and aromatherapy, respectively. In 2025, 12–13 metric tons of oil were consumed regionally, largely imported from Australia and India.

Opportunities exist in:

More than 150 new SKUs launched in 2025 in Europe mention sandalwood as a main note or active ingredient, highlighting its rising premium perception.

Middle East – Attars, Luxury Perfumes, and Ceremonial Use

The Middle East continues to serve as a premium market for sandalwood attars and perfumes. Countries like UAE, Saudi Arabia, and Oman import sandalwood oil—primarily from India—to manufacture traditional attars and luxury blends. In 2025, the region consumed 6.5 metric tons, growing 22% from 2023.

The opportunity lies in ultra-premium scent profiles, custom perfumery, and heritage-based brand stories that feature sandalwood as a symbol of purity and status. Sandalwood-infused Bakhoor and essential oil blends are now being exported from UAE to Europe and North America, providing a lucrative B2B opportunity.

Latin America – Natural Beauty and Ayurveda Influences

Countries like Brazil, Mexico, and Chile are integrating sandalwood oil into natural cosmetics and holistic wellness. Brazil has led the charge with over 250 new launches in 2025 containing sandalwood oil in creams, tonics, and hair masks.

Latin America’s opportunity lies in ethnobotanical formulations, where sandalwood oil is blended with regional oils such as copaiba and andiroba. As Ayurvedic wellness gains popularity, local formulators are creating fusion products targeting urban consumers seeking holistic health, with sandalwood positioned as a premium, spiritual, and anti-aging component.

USA Growing Sandalwood Oil Market Overview 

The United States has rapidly emerged as one of the most lucrative and dynamic markets for sandalwood oil globally. In 2025, the U.S. accounts for 22% of total global sandalwood oil consumption, making it the second-largest market by volume. With consumer preferences shifting toward natural, organic, and plant-based personal care products, sandalwood oil has become a key active ingredient across skincare, wellness, aromatherapy, and high-end fragrance applications.

Import Volume and Trade Dynamics

The U.S. imported an estimated 22 metric tons of sandalwood oil in 2025, showing an 18.3% increase over 2023. This growth is primarily driven by escalating demand from the natural personal care and clean beauty segments. Of the total volume:

California, Texas, Florida, and New York are leading entry points, with Los Angeles and Houston handling over 40% of all sandalwood oil imports into the country.

Consumer Behavior and End-Use Applications

In 2025, sandalwood oil is used in over 850 U.S.-based consumer products, spanning personal care, therapeutic wellness, home fragrance, and spiritual markets. A growing number of consumers associate sandalwood with mental relaxation, skin detoxification, and spiritual clarity, boosting its popularity in holistic wellness circles.

Key Application Segments:

  1. Skincare and Cosmetics
    Sandalwood oil is a featured ingredient in over 500 natural skincare formulations, including moisturizers, anti-aging creams, acne treatments, and face oils. U.S. brands are favoring alpha-santalol-rich variants (60%+) to ensure high efficacy and fragrance longevity.
  2. Aromatherapy and Wellness
    Sandalwood oil ranks among the top five most-used essential oils in massage therapy and diffuser products. More than 22,000 wellness centers and spas in the U.S. offered sandalwood-based services in 2025. Major cities like Los Angeles, Miami, and New York account for 60% of nationwide demand in this segment.
  3. Perfumery
    U.S. fragrance houses and niche perfumers now use sandalwood oil as a base note in nearly 38% of new product launches. Demand for clean-label and alcohol-free perfumes is growing at a double-digit pace, and sandalwood provides both scent longevity and therapeutic depth.
  4. Spiritual Products
    Incense sticks, anointing oils, and meditation candles infused with sandalwood have gained popularity among urban and wellness-focused consumers. Retail chains and e-commerce platforms report a 27% YoY rise in demand for such products.

Key U.S.-Based Players and Importers

Several U.S. companies are actively shaping the domestic supply and application of sandalwood oil. These include:

These brands often source oil from Santanol and Quintis plantations, due to their high santalol content, sustainable cultivation, and traceability documentation required under U.S. regulatory standards.

Retail and Distribution Channels

In 2025, sandalwood oil and its derivative products are distributed across five primary channels in the U.S.:

  1. E-Commerce (41%)
    Platforms like Amazon, iHerb, and brand-owned websites account for the majority of consumer purchases. E-commerce allows rapid access to niche products, contributing to a 19% YoY rise in sandalwood oil sales in 2025.
  2. Specialty Stores (20%)
    Health stores like Whole Foods and Sprouts carry certified sandalwood products across skincare, incense, and oils. Shelf space for sandalwood grew by 12% between 2023 and 2025.
  3. Spas & Wellness Clinics (16%)
    Sandalwood massage oils, diffuser blends, and therapy roll-ons are now standard offerings in urban wellness centers.
  4. Fragrance Retailers (13%)
    Both premium and niche perfumeries stock sandalwood-infused EDTs and EDPs, especially in cities like Los Angeles and Chicago.
  5. Religious & Cultural Supply Stores (10%)
    These cater to Indian, Buddhist, and holistic spiritual communities, offering sandalwood oil in both pure and blended forms.

Regulatory Environment and Certifications

U.S. sandalwood oil imports and sales are guided by multiple federal regulations:

In 2025, over 45% of U.S.-sold sandalwood oil products carried either USDA Organic, ECOCERT, or Fair for Life certification, compared to just 28% in 2021.

Investment, Innovation, and Future Opportunities

Several trends are shaping future opportunities in the U.S. sandalwood oil market:

The overall outlook for sandalwood oil in the U.S. is robust, with demand expected to expand not just in volume but in product variety, certification needs, and consumer education.

Global Growth Insights unveils the top global Sandalwood Oil Companies:

Company Name Headquarters Estimated CAGR (2023–2025) Revenue (2024) Strategic Focus / Notes
Quintis Perth, Australia +9.5% USD 48 million World’s largest sustainable Indian sandalwood producer; vertically integrated plantation-to-product model
Blue Bell Fragrances New Delhi, India +6.2% USD 14 million Focus on perfume blends and export of cosmetic-grade sandalwood oil
Santanol Perth, Australia +8.7% USD 42 million Specializes in Santalum album; strong U.S. and European distribution networks
Naresh International Kannauj, India +5.9% USD 9 million Traditional attar and essential oil exporter; expanding into USDA organic certification
Essentially Australia Byron Bay, Australia +7.4% USD 6 million Organic Australian sandalwood oil supplier; direct-to-consumer wellness focus
RK-Essential Oils Ghaziabad, India +5.6% USD 5 million OEM sandalwood oil supplier for aroma and perfumery applications
TFS Corporation Western Australia +7.8% USD 33 million Parent company of Quintis; strong global plantation infrastructure
Jiangxi Jishui Natural Essential Oil Factory Jiangxi, China +6.5% USD 11 million Blends imported sandalwood for local fragrance and incense brands
New Mountain Merchants Arizona, USA +10.1% USD 4.8 million U.S.-based importer and private label supplier; specializes in therapeutic oils
Meena Perfumery Kannauj, India +5.3% USD 7 million Manufacturer of sandalwood attars and incense; heritage brand in India
Karnataka Soaps & Detergents Limited Bengaluru, India +6.9% USD 62 million State-run enterprise; produces the iconic Mysore Sandalwood Soap
Katyani Exports Uttar Pradesh, India +6.1% USD 6.5 million Bulk supplier of essential oils; strong exports to Europe and Middle East
Sandalwood Forest Chikmagalur, India +5.8% USD 3.5 million Specialized in agroforestry; produces small-batch sandalwood oil for ayurvedic use

FAQ: Global Sandalwood Oil Companies (15 FAQs, ~1,500 words)

This section answers common questions related to leading sandalwood oil producers, sourcing regions, industry standards, and product applications as of 2025.

  1. What are the top global companies in the sandalwood oil market in 2025?

The top players include Quintis (Australia), Santanol (Australia), Karnataka Soaps & Detergents Limited (India), New Mountain Merchants (USA), and Essentially Australia (Australia), based on production volume, sustainability practices, and global distribution.

  1. Which company is the world’s largest producer of Indian sandalwood oil?

Quintis, based in Perth, Australia, is the largest vertically integrated supplier of Indian sandalwood (Santalum album), managing over 5,000 hectares of plantation and producing over 10 metric tons of oil annually.

  1. Are any of the sandalwood oil companies government-owned?

Yes, Karnataka Soaps & Detergents Limited (KSDL) is a government-run entity in India that manufactures the iconic Mysore Sandal Soap and produces pharmaceutical- and cosmetic-grade sandalwood oil.

  1. Which company leads in therapeutic-grade sandalwood oil in the U.S.?

New Mountain Merchants, located in Arizona, is a major U.S. importer and private label distributor specializing in USDA-certified sandalwood oil for aromatherapy, wellness, and therapeutic uses.

  1. Which companies are known for producing organic sandalwood oil?

Essentially Australia and Santanol are certified suppliers of organically cultivated sandalwood oil, offering oils with >90% total santalols and traceability from tree to bottle.

  1. Which company is the largest exporter of attars using sandalwood as a base?

Naresh International and Meena Perfumery, both based in Kannauj, India, are prominent exporters of traditional attars where sandalwood oil serves as the fixative or carrier oil.

  1. What makes Santanol different from other producers?

Santanol uses sustainable plantation practices with traceable Santalum album cultivation and targets pharmaceutical and fine fragrance segments globally. It is known for producing high-yield alpha-santalol-rich oil.

  1. How much sandalwood oil is exported by Katyani Exports annually?

In 2025, Katyani Exports exports approximately 2.2 metric tons of sandalwood oil, primarily to Europe and the Middle East, focusing on industrial and perfumery-grade formulations.

  1. Which companies in China are involved in the sandalwood oil trade?

Jiangxi Jishui Natural Essential Oil Factory is among the most prominent in China, importing raw sandalwood and manufacturing blended oils and incense for local markets.

  1. What role does TFS Corporation play in the sandalwood oil industry?

TFS Corporation is the parent company of Quintis and supports plantation development, distillation, and R&D for high-quality Santalum album production in Australia.

  1. Are there any African companies in the sandalwood oil space?

While African producers are still emerging, some small distilleries in Kenya and Tanzania have begun trial production, with commercial-scale outputs expected by 2027.

  1. Which company focuses on agroforestry-based sandalwood oil production?

Sandalwood Forest in Chikmagalur, India, follows agroforestry principles and small-batch distillation, supplying oil to ayurvedic brands and artisan perfumers.

  1. What’s unique about Blue Bell Fragrances in India?

Blue Bell Fragrances focuses on custom blends and essential oil-based perfumes for export markets, leveraging Indian sandalwood oil in over 100 fragrance formulas.

  1. Which U.S. states are key markets for sandalwood oil companies?

California, Texas, Florida, and New York are the largest consumer states for sandalwood oil, accounting for over 55% of national demand in personal care and wellness sectors.

  1. How are companies maintaining sustainability in sandalwood oil production?

Leading producers like Quintis, Santanol, and Essentially Australia use GPS-tagged trees, satellite monitoring, and 15–20 year growth cycles to ensure long-term supply without deforestation.