Sandalwood Oil Market

Sandalwood Oil Market Outlook (2023 to 2033)

The global sandalwood oil market stands at US$ 115 million in 2023 and is forecasted to reach a market valuation of US$ 188 million by the end of 2033, expanding at a CAGR of 5% from 2023 to 2033.

Sandalwood oil is extracted from the wood of sandalwood trees. It is a translucent liquid, which comes with a pleasant, sensitive, and sweet scent. It is manufactured from the aromatic stem of sandalwood trees. Sandalwood oil is used extensively in soaps, perfumes, lotions, and other items as it is believed to be helpful in providing calmness.

Sandalwood oil also finds applications to treat headaches, urinary problems, and stomachaches as it has astringent and antiseptic properties. In addition, it is widely utilized in aromatherapy to stimulate psychological well-being. Sandalwood oil is recognized for its therapeutic application to treat mental and somatic diseases.

In recent years, there has been an increasing demand for natural perfumeries around the world. The rising consumption of aromatic chemicals and the growing popularity of natural cosmetics are propelling the demand for sandalwood oil across the globe.

Sandalwood has a special place in the field of natural fragrance. Though sandalwood extracts have cultural and historical importance as these were used in ancient times, sandalwood oil is a fresh addition to natural perfumery. Besides, sandalwood oil is used in the cosmetic and personal care industry as a moisturizing agent, anti-wrinkle component, and face-cleaning oil. Sandalwood oil is widely used for skin lightening in various personal care products, including body lotions, shampoos, and bathing soaps. It is widely produced in the Asia Pacific, especially in India, where sandalwood trees are majorly found.

France and the United States are key export destinations for sandalwood oil suppliers owing to its rising utilization in cosmetic products. Sandalwood oil is beneficial for the skin and can be utilized in the treatment of various skin ailments, including itching, eczema, dryness, and rashes. Thus, sandalwood oil is helpful in protecting ulcers and wounds from infection.

Sandalwood oil has numerous natural skin-lightening agents, which help to lighten and brighten the human skin and this is expected to stimulate the demand for sandalwood oil for the production of various beauty packs and lotions. Expanding hospitality services and increased aesthetic sensibility are projected to propel the demand for sandalwood oil over the coming years.

Report Attributes	Details
Sandalwood Oil Market Size in 2023	US$ 115 Million
Forecasted Market Value (2033)	US$ 188 Million
Projected Market Growth Rate (2023 to 2033)	5% CAGR
Canada Market Growth Rate (2023 to 2033)	5.1% CAGR
Germany Market Growth Rate (2023 to 2033)	2.5% CAGR
Key Companies Profiled	Eden Botanicals Katyani Exports Quintis (Australia) Pty Ltd. R K – Essential Oils Company Santanol Group Albert Vieille SAS Plant Therapy Essential Oils Khadi Natural

Why are Sales of Sandalwood Oil Increasing Steadily across the World?

“Growing Awareness about Health Benefits of Sandalwood Oil”

Sandalwood oil prevents the development of various forms of melanomas (skin malignancies) when applied topically. In addition, there is a rising consumer awareness related to the health benefits of sandalwood oil, which is estimated to boost its sales during the forecast period.

A pleasant scent is present in sandalwood oil, which makes the oil more popular for aromatherapy, which has positive physical and mental health outcomes. Further, sandalwood aromatherapy is also used for the treatment of stress-related disorders.

“Increasing R&D Activities and Innovations in Sandalwood Oil”

Various benefits of sandalwood oil diversify its applications, which is expected to further offer multiple prospects for players in the target business. As a result, manufacturers are investing in different research and development activities. These initiatives can result in the emergence of new generation sandalwood oil with more inventive applications.

Which Factors Can Restrain the Adoption of Sandalwood Oil to Some Extent?

“Limited Availability of Sandalwood Leading to Higher Prices of End Products”

Sandalwood is a natural resource, which is not available very easily. It is mostly limited to India, South Africa, and Sri Lanka. Thus, the limited availability of sandalwood can make its production more difficult, which is expected to result in the increased cost of the final product.

Thus, manufacturers need to come up with more diverse and better goods while maintaining the cost of oil in an affordable and reasonable range for customers around the world.

Which Regional Market Generates High Demand for Sandalwood Oil?

“Asia Pacific to Hold Substantial Share of Global Market Revenue”

Asia Pacific is estimated to hold a dominating position in the global market, retaining a share of 60.1% of total revenue by 2033. This dominance is attributed to the vast availability of sandalwood trees in the region. In addition, there are numerous key players with headquarters in Indonesia and India, which help in boosting sales of sandalwood oil in this region. India generates maximum demand for sandalwood, which is used in ayurvedic treatment and personal care products.

Country-wise Insights

Why is Demand for Sandalwood Oil Increasing Rapidly in Japan?

“Ever-increasing Sales of Personal Care Products”

Sales of sandalwood oil in Japan are estimated to progress at a CAGR of 2% during the forecast period from 2023 to 2033. People from Japan are inclined to buy personal care products. In addition, growing awareness about the health benefits of sandalwood oil is also expected to propel its sales over the coming 10 years.

Why is the United States a Lucrative Market for Sandalwood Oil Manufacturers?

“Growing Demand for Personal Care Products with Natural Ingredients”

Demand for sandalwood oil in the United States was valued at US$ 27 million in the year 2022. Americans are more inclined to buy and use personal care products that are organic and contain natural ingredients. Moreover, the growing popularity of sandalwood oil in aromatherapy is also predicted to fuel its sales across the country.

Sales of sandalwood oil in Canada are projected to expand at a CAGR of 5.1% from 2023 to 2033.

Why is Germany a Strong Market in the European Region?

“Increasing Use of Sandalwood Oil in Hospitality Services”

Demand for sandalwood oil in Germany is anticipated to advance at a CAGR of 2.5% during the forecast period. The growing use of sandalwood oil in hospitality services is projected to boost its sales during the forecast period.

Category-wise Insights

Why is Demand for Natural Sandalwood Oil Increasing Globally?

“Growing Demand for Eco-friendly & Natural Products in Personal Care Industry”

Natural and lab-created are two product types of the global sandalwood market. Natural sandalwood oil is estimated to hold a substantial share of more than 70.1% of the target market by the end of 2033. The demand for eco-friendly and natural skin care products is estimated to increase over the coming 10 years around the world.

At present, consumers around the world are demanding personal and healthcare products containing natural ingredients. In addition, natural sandalwood is comparatively cheaper to produce and has lesser side effects compared to lab-created sandalwood oil.

Which End-use Application is Expected to Hold a Substantial Share of the Sandalwood Oil Market?

“Personal Care Sector Generating Noticeable Revenue for Market Players”

Based on application, the global sandalwood oil market is segmented into personal care, aromatherapy, pharmaceuticals, and others. The personal care segment is predicted to hold a substantial share of more than 45.2% by the end of 2033. This dominance is attributed to the growing utilization of sandalwood oil in different personal care and cosmetic products, including soaps, creams, shampoos, perfumes, etc.

Aromatherapy is predicted to hold more than 30% of the total market share by the end of 2033. Sandalwood oil is used in hotels and spas for aromatherapy, which is projected to stimulate its demand over the coming years.

Competition Analysis

Prominent manufacturers of sandalwood oil are making huge investments for the expansion of their footprints across different geographies. They are also ensuring effective management of local supply while spending a substantial amount to strengthen their global supply chain management systems.

Providers of sandalwood oil aim to deliver quality products to respective end users. During the manufacturing of sandalwood oil, producers ensure to follow the guidelines, which are implemented by respective governing bodies to reduce environmental impact.

Prominent manufacturers of sandalwood oil are Eden Botanicals, Katyani Exports, Quintis (Australia) Pty Ltd., R K – Essential Oils Company, Santanol Group, Albert Vieille SAS, Plant Therapy Essential Oils, and Khadi Natural. These companies are studied in detail in this research report, which is recently published by Fact.MR, a provider of market research and competitive intelligence.

Segmentation of Sandalwood Oil Industry Research

• By Product :

  • Natural
  • Lab-created

• By Application :

  • Personal Care
  • Aromatherapy
  • Pharmaceuticals
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa