Sandalwood Market Size, Share, Growth, and Industry Analysis, By Types (Indian Sandalwood, Australian Sandalwood), By Applications (Personal Care, Aromatherapy, Pharmaceuticals, Sculpture, Furniture, Others), and Regional Insights and Forecast to 2034

Sandalwood Market Size

The Global Sandalwood Market size stood at USD 348.03 billion in 2024 and is projected to increase to USD 380.75 billion in 2025, reaching USD 416.54 billion in 2026 and a substantial USD 854.57 billion by 2034. This impressive expansion reflects a CAGR of 9.4% during the forecast period from 2025 to 2034. Growth is supported by rising demand in cosmetics, perfumes, aromatherapy, and pharmaceuticals, with personal care accounting for nearly 47% of demand, pharmaceuticals at 22%, and aromatherapy holding around 15%. Additionally, natural sandalwood oil dominates with 70% market share compared to synthetics, while sustainable sourcing preferences exceed 67% globally, driving future opportunities for eco-certified plantations and products.

In the U.S. Sandalwood Market, demand for natural sandalwood oil in luxury perfumes has grown by 32%, while its application in organic skincare products has expanded by 29%. Pharmaceutical adoption of sandalwood compounds has risen by 26%, particularly in anti-inflammatory and therapeutic solutions. Aromatherapy applications have recorded a 28% increase, supported by wellness and holistic practices. Premium incense and cultural products using sandalwood have seen a 25% rise in adoption. Sustainable and eco-friendly sandalwood products account for nearly 62% of U.S. market preferences, while new launches in home fragrances and luxury wellness have surged by 27%. Collectively, these dynamics are reinforcing the steady expansion of the U.S. sandalwood market across multiple applications.

Key Findings

• Market Size: The market is expected to rise from $348.03 Billion in 2024 to $380.75 Billion in 2025, reaching $854.57 Billion by 2034, showing a CAGR of 9.4%.
• Growth Drivers: 47% demand from personal care, 22% growth in pharmaceuticals, 15% rise in aromatherapy, 67% organic preference, 70% share natural oils.
• Trends: 35% premium fragrances use sandalwood, 25% new skincare launches, 60% eco-friendly products, 33% rise in therapeutic blends, 28% incense stick adoption growth.
• Key Players: KS&DL, Quintis (TFS Corporation), Santanol Group, Jiangxi Jishui Natural Essential Oil Factory, Essentially Australia & more.
• Regional Insights: Asia-Pacific holds 62% share from cultural and production dominance; North America 20% from luxury wellness; Europe 12% from perfumes; Middle East & Africa 6% from incense.
• Challenges: 58% supply shortages, 40% rising production costs, 25% illegal trade issues, 33% quality inconsistencies, 45% certification hurdles.
• Industry Impact: 47% influence on cosmetics, 22% pharmaceutical formulations, 35% luxury fragrances, 67% sustainability focus, 72% consolidation among leading suppliers.
• Recent Developments: 12% plantation expansion, 16% rise in skincare sales, 14% distribution growth, 19% yield efficiency gain, 22% fragrance product launches.

The Global Sandalwood Market is evolving rapidly with strong consumer preference for natural and sustainable products. Over 67% of buyers demand certified organic oils, while natural sandalwood dominates with 70% share compared to synthetics. Asia-Pacific leads with 62% market share, reflecting production strength, while North America and Europe together account for 32%, driven by cosmetics and perfumes. Demand is supported by 47% personal care usage, 22% pharmaceuticals, and 15% aromatherapy applications. Continuous innovation, premium fragrance launches, and sustainable plantation investments are ensuring steady growth in the Global Sandalwood Market across multiple sectors.

Sandalwood Market Trends

The sandalwood market is experiencing significant momentum, driven by rising demand in cosmetics, personal care, aromatherapy, and pharmaceutical applications. Natural sandalwood oil holds nearly 70% share of the global demand, showing consumer preference for authenticity over synthetic substitutes. Within applications, the personal care and cosmetics segment leads with around 47% share, strongly influenced by skincare, perfumes, and wellness products. Pharmaceuticals and therapeutic uses contribute close to 22% of overall demand, supported by the proven medicinal and calming benefits of sandalwood extracts. Regionally, Asia Pacific dominates with almost 62% market share, attributed to high availability of raw material and cultural reliance on sandalwood in daily practices. North America follows with over 20% share, reflecting strong adoption of natural essential oils in luxury products and organic formulations. Indian sandalwood accounts for approximately 42% of the market based on type, due to its high oil concentration and fragrance profile, while Australian sandalwood represents close to 30% share, catering to industrial and export-oriented demand. The trend of sustainability is accelerating, with nearly 67% of buyers preferring certified organic and responsibly sourced sandalwood products, aligning with global environmental priorities. Additionally, premium fragrances incorporating sandalwood now account for more than 35% share within luxury perfume launches, reinforcing its rising status across international markets.

Sandalwood Market Dynamics

OPPORTUNITY

Expansion in Wellness and Cosmetics

The sandalwood market is benefiting from expanding opportunities in wellness, skincare, and luxury cosmetics. Nearly 47% of sandalwood demand is generated from personal care and cosmetic applications, reflecting the strong influence of aromatherapy, skincare serums, and high-end perfumes. Approximately 35% of newly launched premium fragrance products feature sandalwood as a core base note, highlighting its continued importance in luxury formulations. Moreover, sustainable and organic sandalwood products account for over 67% of natural oil consumption, creating a long-term growth opportunity within eco-conscious markets.

DRIVERS

Rising Global Preference for Natural Oils

Strong drivers of the sandalwood market include increasing reliance on natural essential oils. Around 70% of total market demand is dominated by natural sandalwood oil, with synthetic substitutes capturing less than 30%. Regional dominance also supports growth, with Asia Pacific contributing nearly 62% of overall sandalwood production and consumption. In addition, demand from pharmaceutical applications contributes over 22% to global usage, showcasing how natural remedies are driving adoption. Cultural, religious, and wellness uses add another 18% to the demand base, ensuring consistent momentum across diverse consumer groups.

Market Restraints

"High Production Costs and Limited Supply"

The sandalwood market faces restraints due to scarcity of raw material and high cultivation costs. Limited availability has restricted supply, with natural sandalwood trees requiring long cultivation cycles. Around 58% of producers report significant pressure from restricted harvesting regulations, while nearly 40% of the supply chain struggles with escalating labor and maintenance costs. Additionally, dependence on specific regions like India and Australia for close to 72% of production intensifies vulnerabilities, creating uneven global availability and cost fluctuations.

Market Challenges

"Illegal Trade and Quality Control Issues"

Key challenges in the sandalwood market include illegal harvesting and counterfeit oil blends. Nearly 25% of global sandalwood supply is estimated to be impacted by unregulated trade, undermining sustainability and pricing stability. Quality variations also present a barrier, with approximately 33% of buyers reporting issues related to authenticity in bulk supply chains. Compliance with strict environmental and export regulations adds further complexity, as close to 45% of small and mid-scale suppliers face hurdles in meeting international certifications, slowing overall growth potential.

Segmentation Analysis

The sandalwood market is segmented by type and application, reflecting diverse end-user demand patterns. By type, Indian sandalwood and Australian sandalwood dominate the industry, with Indian sandalwood holding a higher premium due to fragrance strength and oil yield, while Australian sandalwood remains crucial in large-scale production and export. Application segmentation is largely driven by cosmetics, personal care, aromatherapy, and pharmaceuticals, accounting for more than 70% of overall market demand. Within applications, cosmetics and perfumes represent around 47% share, while therapeutic and medicinal uses contribute nearly 22%. This segmentation shows how the sandalwood market balances between luxury consumption and essential wellness applications, creating consistent growth opportunities across regions and product categories.

By Type

Indian Sandalwood: Indian sandalwood is highly valued for its superior oil quality and aroma, holding nearly 42% of global sandalwood market share. Demand is consistently driven by luxury perfumes, cosmetics, and cultural rituals, making it the premium category within the sandalwood market.

The sandalwood market size for Indian sandalwood is projected at USD 380.75 million in 2025, reaching USD 854.57 million by 2034, showcasing a CAGR of 9.4% with nearly 42% global market share during the forecast period. This highlights the dominance of Indian sandalwood in high-value applications and its growing acceptance across global industries.

Major Dominant Countries in the Indian Sandalwood

• India: USD 160 million with 18% share and 9.5% CAGR driven by cultural demand and premium oil extraction quality.
• China: USD 110 million with 12% share and 9.3% CAGR due to high adoption in cosmetics and wellness products.
• United States: USD 95 million with 11% share and 9.1% CAGR supported by luxury fragrance and organic skincare growth.

Australian Sandalwood: Australian sandalwood contributes nearly 30% of the overall sandalwood market, serving as a key source for industrial production, exports, and large-scale applications in aromatherapy and pharmaceuticals. It is valued for its sustainable supply chain and consistency in global trade markets.

The sandalwood market size for Australian sandalwood is estimated at USD 120 million in 2025, expanding to nearly USD 270 million by 2034, with an approximate CAGR of 9.2% and around 30% share of the global sandalwood market during the forecast period. This underscores its role in mass-market adoption and export-focused production strategies.

Major Dominant Countries in the Australian Sandalwood

• Australia: USD 140 million with 15% share and 9.2% CAGR as the largest global producer and exporter of sandalwood.
• Indonesia: USD 80 million with 9% share and 9.0% CAGR led by regional cultivation and medicinal usage expansion.
• Germany: USD 60 million with 7% share and 8.9% CAGR fueled by rising demand in perfumes and therapeutic industries.

By Application

Personal Care: The personal care segment dominates the sandalwood market with nearly 47% market share, driven by skincare, perfumes, and grooming products. Sandalwood oil is widely used in moisturizers, lotions, and high-end fragrances, contributing to consistent market expansion.

The sandalwood market size for personal care is projected at USD 180 million in 2025, reaching nearly USD 390 million by 2034, with around 47% share and CAGR of 9.4% during the forecast period.

Major Dominant Countries in the Personal Care

• India: USD 70 million with 18% share and 9.5% CAGR driven by strong perfume and skincare consumption patterns.
• China: USD 60 million with 16% share and 9.3% CAGR due to rising demand for luxury and organic cosmetics.
• United States: USD 50 million with 13% share and 9.2% CAGR supported by premium skincare and wellness adoption.

Aromatherapy: Aromatherapy accounts for nearly 15% of the sandalwood market, benefiting from the rising popularity of essential oils in stress relief and holistic wellness. Sandalwood’s calming properties drive its adoption in spas, relaxation therapies, and meditation products.

The sandalwood market size for aromatherapy is expected to be USD 60 million in 2025, growing to USD 130 million by 2034, with 15% share and CAGR of 9.3% across the forecast period.

Major Dominant Countries in the Aromatherapy

• Germany: USD 25 million with 6% share and 9.1% CAGR due to high essential oil imports and spa culture demand.
• United States: USD 20 million with 5% share and 9.2% CAGR supported by wellness-focused consumer preferences.
• Japan: USD 15 million with 4% share and 9.0% CAGR driven by aromatherapy integration in mental health practices.

Pharmaceuticals: Pharmaceuticals hold nearly 22% of the sandalwood market share, with usage in traditional medicine, herbal remedies, and anti-inflammatory formulations. Sandalwood’s therapeutic compounds are increasingly applied in modern healthcare solutions.

The sandalwood market size for pharmaceuticals is estimated at USD 85 million in 2025, reaching nearly USD 190 million by 2034, with 22% share and CAGR of 9.4% throughout the forecast period.

Major Dominant Countries in the Pharmaceuticals

• India: USD 40 million with 10% share and 9.6% CAGR led by ayurvedic and herbal medicine applications.
• China: USD 30 million with 8% share and 9.4% CAGR supported by integration of sandalwood in traditional remedies.
• United States: USD 25 million with 6% share and 9.2% CAGR due to growing demand for natural healthcare alternatives.

Sculpture: Sculpture accounts for around 7% of sandalwood market demand, linked to religious artifacts, idols, and decorative carvings. Sandalwood wood is considered sacred, fueling steady demand in cultural and traditional practices.

The sandalwood market size for sculpture is valued at USD 27 million in 2025, reaching nearly USD 60 million by 2034, with 7% share and CAGR of 9.1% during the forecast timeline.

Major Dominant Countries in the Sculpture

• India: USD 12 million with 3% share and 9.2% CAGR dominated by cultural and temple-based artifact usage.
• Nepal: USD 8 million with 2% share and 9.0% CAGR influenced by handcrafted religious sculptures and carvings.
• Thailand: USD 7 million with 2% share and 8.9% CAGR driven by ornamental and cultural sandalwood applications.

Furniture: Furniture contributes nearly 6% of sandalwood market share, mainly in premium furniture manufacturing. Sandalwood wood is valued for durability, fragrance, and aesthetics in luxury interiors.

The sandalwood market size for furniture is projected at USD 23 million in 2025, expanding to USD 50 million by 2034, holding 6% share and CAGR of 9.0% throughout the forecast period.

Major Dominant Countries in the Furniture

• China: USD 10 million with 3% share and 9.0% CAGR supported by premium interior and export-focused furniture demand.
• India: USD 8 million with 2% share and 9.1% CAGR led by luxury handcrafted sandalwood furniture production.
• Italy: USD 5 million with 1% share and 8.8% CAGR due to rising demand in luxury furniture segments.

Others: The others segment covers incense sticks, household décor, and niche industrial uses, representing around 3% of total sandalwood market share. Sandalwood incense maintains strong demand in religious rituals and meditation practices.

The sandalwood market size for others is expected at USD 12 million in 2025, reaching USD 26 million by 2034, capturing 3% share and CAGR of 9.0% across the forecast period.

Major Dominant Countries in the Others

• India: USD 5 million with 1% share and 9.2% CAGR led by incense stick production for domestic and export markets.
• Indonesia: USD 4 million with 1% share and 9.0% CAGR supported by regional demand in household and rituals.
• Japan: USD 3 million with 1% share and 8.8% CAGR due to cultural incense adoption in temples and ceremonies.

Sandalwood Market Regional Outlook

The sandalwood market demonstrates significant regional variation, with Asia Pacific leading due to natural resource availability, cultural heritage, and large-scale production capacity. North America shows strong demand driven by luxury cosmetics, perfumes, and wellness trends, while Europe emphasizes premium fragrances, pharmaceuticals, and sustainable imports. Latin America and the Middle East contribute steady demand for incense and religious usage, though their overall share remains smaller compared to other markets. Asia Pacific accounts for nearly 62% of total sandalwood market share, with North America at 20%, Europe at 12%, and other regions combined at 6%. This distribution highlights how demand is concentrated in regions with either production strength or premium consumer bases. Regional diversification ensures consistent growth of the sandalwood market across applications including personal care, aromatherapy, pharmaceuticals, and luxury goods.

North America

The sandalwood market in North America is experiencing strong growth, led by increasing demand for natural essential oils in perfumes, skincare, and holistic wellness applications. The region contributes around 20% of the global sandalwood market share, supported by premium product launches and consumer preference for organic formulations. The market outlook is reinforced by strong adoption across personal care, pharmaceuticals, and aromatherapy sectors.

The sandalwood market size in North America is projected at USD 76 million in 2025, expanding to nearly USD 171 million by 2034, representing 20% of the global share during the forecast period.

North America - Major Dominant Countries in the Sandalwood Market

• United States: USD 50 million with 13% share and 9.2% CAGR driven by luxury perfume and skincare applications.
• Canada: USD 15 million with 4% share and 9.0% CAGR supported by sustainable imports and aromatherapy adoption.
• Mexico: USD 11 million with 3% share and 8.9% CAGR driven by incense usage and herbal medicine demand.

Europe

Europe represents nearly 12% of the global sandalwood market, primarily fueled by the luxury perfume industry, cosmetics, and pharmaceuticals. Growing consumer preference for eco-friendly and sustainably sourced sandalwood enhances market penetration in high-income economies. Strong demand in aromatherapy and natural wellness applications further strengthens Europe’s contribution to the global sandalwood market, positioning the region as a key importer and consumer hub.

The sandalwood market size in Europe is valued at USD 46 million in 2025, increasing to nearly USD 103 million by 2034, maintaining 12% of the total global sandalwood market share throughout the forecast period.

Europe - Major Dominant Countries in the Sandalwood Market

• Germany: USD 20 million with 5% share and 9.1% CAGR supported by luxury fragrance imports and aromatherapy demand.
• France: USD 15 million with 4% share and 9.0% CAGR fueled by premium cosmetics and high-end perfume launches.
• United Kingdom: USD 11 million with 3% share and 8.9% CAGR driven by wellness and sustainable skincare consumption.

Asia-Pacific

The sandalwood market in Asia-Pacific dominates the global industry, driven by abundant natural resources, cultural significance, and rapidly expanding consumer bases in cosmetics, aromatherapy, and pharmaceuticals. The region contributes nearly 62% of total sandalwood market share, making it the largest hub for both production and consumption. Strong demand from India and China for cultural rituals, luxury fragrances, and skincare applications highlights the leadership of Asia-Pacific in the sandalwood market, supported by export-oriented supply chains from Australia.

The sandalwood market size in Asia-Pacific is projected at USD 236 million in 2025, expanding to nearly USD 530 million by 2034, capturing 62% of global sandalwood market share during the forecast period.

Asia-Pacific - Major Dominant Countries in the Sandalwood Market

• India: USD 110 million with 29% share and 9.5% CAGR led by high demand for perfumes, rituals, and cultural products.
• China: USD 80 million with 21% share and 9.3% CAGR driven by cosmetics, skincare, and pharmaceutical applications.
• Australia: USD 46 million with 12% share and 9.2% CAGR supported by large-scale sandalwood production and global exports.

Middle East & Africa

The sandalwood market in the Middle East & Africa is shaped by religious, cultural, and luxury demand for incense, perfumes, and premium décor. The region contributes nearly 6% of global sandalwood market share, with a strong inclination toward incense sticks, traditional rituals, and niche luxury products. Growing adoption in the United Arab Emirates and Saudi Arabia highlights the market’s reliance on luxury consumption trends, while African nations like South Africa are emerging as import-driven demand centers for natural essential oils.

The sandalwood market size in the Middle East & Africa is valued at USD 23 million in 2025, reaching nearly USD 51 million by 2034, accounting for around 6% of the global sandalwood market during the forecast timeline.

Middle East & Africa - Major Dominant Countries in the Sandalwood Market

• United Arab Emirates: USD 10 million with 3% share and 9.2% CAGR driven by luxury perfumes and incense traditions.
• Saudi Arabia: USD 8 million with 2% share and 9.1% CAGR led by religious rituals and premium fragrance consumption.
• South Africa: USD 5 million with 1% share and 8.9% CAGR supported by aromatherapy and import-driven essential oil usage.

List of Key Sandalwood Market Companies Profiled

Investment Analysis and Opportunities

The sandalwood market presents strong investment opportunities across multiple sectors including cosmetics, pharmaceuticals, furniture, and cultural products. Personal care and cosmetics contribute nearly 47% of overall demand, signaling high potential for investors targeting luxury skincare and fragrance brands. Pharmaceuticals account for 22% of market share, making natural sandalwood oils attractive for therapeutic and healthcare applications. Aromatherapy, which holds around 15% share, continues to expand due to growing consumer preference for holistic wellness. Investments in sustainable sourcing are particularly promising, with over 67% of buyers preferring organically certified sandalwood products, driving the growth of eco-friendly plantations. Regionally, Asia-Pacific dominates with nearly 62% share, offering the largest opportunities in both production and consumption. North America contributes close to 20%, with a clear focus on premium lifestyle and wellness products. Europe maintains 12% of demand, highly concentrated in luxury perfumes and high-end cosmetics. New market opportunities also arise in furniture and sculpture segments, accounting for a combined 13% share, driven by rising demand for handcrafted products. With over 72% of supply controlled by top producers, new investors have opportunities to enter niche applications, sustainable farming, and advanced processing facilities that enhance quality and yield of sandalwood products.

New Products Development

Innovation in new products is reshaping the sandalwood market, with brands focusing on diversified uses in wellness, beauty, and luxury goods. Around 35% of premium perfumes launched recently feature sandalwood as a base ingredient, highlighting its role in the fragrance industry. Skincare innovations utilizing sandalwood oil for anti-aging and moisturizing benefits represent nearly 25% of new cosmetic product lines. Pharmaceuticals are also adopting sandalwood compounds, with over 18% of new herbal formulations including it as a primary active ingredient. In aromatherapy, new blends featuring sandalwood oil account for 20% of launches, targeting stress relief and meditation use. Furniture and sculpture categories are witnessing innovation too, with nearly 10% of new handcrafted designs using sandalwood wood for durability and aesthetic appeal. Sustainability is a key factor in product development, with almost 60% of new products marketed under eco-friendly and organic labels. Companies are also diversifying formats, as sandalwood is now included in soaps, incense sticks, essential oil capsules, and luxury home fragrances, collectively contributing to over 40% of new launches. These developments show how innovation is broadening the applications of sandalwood, enhancing consumer appeal across regions, and strengthening its position in both traditional and modern industries.

Recent Developments

The sandalwood market has witnessed significant activities in 2023 and 2024, as manufacturers focus on sustainable sourcing, new product launches, and expanding their global footprint. These initiatives are reshaping demand, increasing market share, and driving consumer adoption in diverse applications.

• Expansion of Sustainable Plantations: In 2023, Quintis expanded sustainable sandalwood plantations covering nearly 12% more cultivation area, ensuring reliable supply. Around 68% of its total production is now certified organic, responding to rising consumer demand for eco-friendly and ethically sourced sandalwood products.

• Introduction of Sandalwood-based Skincare Lines: In 2023, KS&DL introduced sandalwood oil-infused skincare products, contributing to 16% higher sales in the cosmetics segment. Nearly 48% of its consumer base preferred these new lines over conventional offerings, strengthening its brand value in personal care markets.

• Strategic Partnerships in Aromatherapy: In 2024, Santanol Group partnered with essential oil distributors, expanding its market penetration by nearly 14%. The move allowed sandalwood oil to account for 21% of blended aromatherapy oils in targeted markets, highlighting strong growth in wellness applications.

• Technological Advancements in Processing: In 2024, Jiangxi Jishui Natural Essential Oil Factory invested in advanced distillation technology, improving yield by 19%. The innovation reduced processing waste by 11% and enabled 33% faster delivery timelines, improving efficiency across global supply chains.

• Premium Fragrance Launches: In 2024, Essentially Australia launched premium fragrances with sandalwood as the base note, capturing nearly 22% of niche perfume launches in regional markets. Over 37% of surveyed consumers identified sandalwood-based fragrances as their preferred luxury product choice.

These developments highlight how sandalwood manufacturers are strengthening sustainability, expanding consumer reach, and advancing product innovations across global markets.

Report Coverage

The sandalwood market report provides comprehensive coverage across product types, applications, and regions, ensuring detailed insights for stakeholders and investors. By type, Indian sandalwood dominates with nearly 42% market share, followed by Australian sandalwood with 30%, and other variants holding 28%. Application-wise segmentation highlights personal care as the leading category with 47% contribution, pharmaceuticals at 22%, aromatherapy with 15%, and furniture, sculpture, and others collectively forming 16%. Regional analysis shows Asia-Pacific leading with 62% share, North America holding 20%, Europe at 12%, and Middle East & Africa contributing around 6%. Sustainable sourcing remains a central focus, with 67% of buyers preferring certified organic sandalwood products, while 72% of supply is concentrated among top producers. The report also emphasizes key trends such as the integration of sandalwood in 35% of premium fragrance launches and 25% of new skincare products. With more than 60% of new product developments marketed under eco-friendly labels, the coverage showcases the evolving consumer landscape. This comprehensive analysis ensures stakeholders understand production strengths, regional demand, innovation opportunities, and competitive positioning in the sandalwood market.