Sandalwood Oil Market Analysis

Global Sandalwood Oil Market Overview

Sandalwood Oil Market Size was valued at USD 0.1 Billion in 2023. The Sandalwood Oil market industry is projected to grow from USD 0.11 Billion in 2024 to USD 0.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.99% during the forecast period (2024-2032). Sandalwood oil's many advantages and a boost in discretionary income, are the key market drivers enhancing the market growth.

Type Secondary Research, Primary Research, MRFR Database and Analyst Review

Sandalwood Oil Market Trends

The growing internet penetration is driving the market growth

This might be attributed to the rising demand from important end-use sectors like aromatherapy and personal care & cosmetics. Complex, volatile chemical components found in sandalwood oil are renowned for having antifungal, antibacterial, anti-inflammatory, and antiviral effects. This oil doesn't have any significant adverse effects, unlike the majority of traditional medications and pharmaceuticals. These elements are anticipated to be the main propellers of market expansion. For the most part for substances that generate odours, conventional medicines and treatments feature enticing fragrance components to create appealing products. Due to the accompanying health benefits and lower danger of negative effects, sandalwood oil is also progressively replacing chemicals, medications, and prescriptions.

The key growth engine for the worldwide sandalwood oil market is the increase in disposable income. Sandalwood oil is also believed to induce tranquillity. The oil's comforting and revitalising woodsy scent aids in mind-calming and relaxation. One of the best essential oils for calming and controlling emotions and fostering harmony and tranquilly is this one. To reduce tension and worry, which are the main factors driving the market's growth, massage sandalwood oil into the wrists and ankles or inhale it directly.

Additionally, this essential oil made from sandalwood bark is extensively utilised for enhancing skin health because to its antioxidant properties. It effectively reduces oxidative damage and removes free radicals from the skin. Additionally, it eliminates blemishes from the inner layers of the skin, improves the general health of the skin, and treats a number of skin diseases, including dark spots, patches, dark circles, dullness, dryness, suntan, and blemishes. Additionally, sandalwood contains pheromone-like qualities and is utilised in the production of fragrances and deodorants.

Additionally, sandalwood oil has aphrodisiac properties. Sandalwood may also be combined with other essential oils to create various smells and be used as a deodorant, which is another significant factor driving the growth of the sandalwood oil market. On the other hand, white sandalwood can sometimes induce allergic skin reactions in some people, which acts as a key restraint and slows the expansion of the sandalwood oil market. White sandalwood can also cause stomach issues, vomiting, and nausea. Thus, driving the Sandalwood Oil market revenue.

Sandalwood Oil Market Segment Insights

Sandalwood Oil Type Insights

The Sandalwood Oil market segmentation, based on type, includes Natural Sandalwood Oil and Lab-created Sandalwood Oil. Natural sandalwood oil segment accounted for the largest revenue share in 2023. This is because there is a growing desire for natural and environmentally friendly products, particularly when personal and health care are involved. Additionally, if utilised in cosmetic or pharmaceutical applications, natural sandalwood oil is less expensive to produce and has fewer adverse effects than lab-created sandalwood oil.

Sandalwood Oil Application Insights

The Sandalwood Oil market segmentation, based on application, includes Personal Care, Pharmaceuticals, Aromatherapy, and Others. Personal care segment dominated the Sandalwood Oil market in 2023. Producing soaps, beauty products, and other amenities uses sandalwood, a natural antibacterial and preservative. The market is being driven by the usage of sandalwood oil in the pharmaceuticals industry, which is also expanding.

Figure 1: Sandalwood Oil Market, by Application, 2022 & 2032 (USD Billion)

Type Secondary Research, Primary Research, MRFR Database and Analyst Review

Sandalwood Oil Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Sandalwood Oil Market dominated this market in 2022 (45.80%). In the upcoming years, rising acceptance of natural products and awareness of the value of living a healthy lifestyle in North America are expected to drive market expansion. High per capita income, tax advantages, and government subsidies are luring multinational corporations to establish and grow operations in this area. A significant contributing aspect to this situation is the region's growing preference for preventive healthcare. Further, the U.S. Sandalwood Oil market held the largest market share, and the Canada Sandalwood Oil market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SANDALWOOD OIL MARKET SHARE BY REGION 2022 (USD Billion)

Type Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Sandalwood Oil market accounted for the healthy market share in 2023. This is due to the region's large population and several undiscovered markets, which are anticipated to draw the attention of major players who will grow and create operations and distribution centres there. The expansion of the sector in Europe has benefited from the existence of groups like the European Federation of Essential Oils (EFEO). EFEO was established to advance and defend the interests of all parties involved in the market value chain. Further, the German Sandalwood Oil market held the largest market share, and the U.K Sandalwood Oil market was the fastest growing market in the European region

The Asia Pacific Sandalwood Oil market is expected to register significant growth from 2023 to 2032. Pioneers in the field, Asia Pacific nations like India, China, and Indonesia are now the biggest exporters of some of the world's most priceless oils and extracts, including champaca extract, jasmine extract, davana oil, frankincense oil, sandalwood oil, spice oils, etc. The favourable weather for farming, the affordable labour force, and the abundance of raw materials are just a few of the elements that are propelling the expansion of production in this area. Moreover, China’s Sandalwood Oil market held the largest market share, and the Indian Sandalwood Oil market was the fastest growing market in the Asia-Pacific region.

Sandalwood Oil Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Sandalwood Oil market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Sandalwood Oil industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Sandalwood Oil industry to benefit clients and increase the market sector. In recent years, the Sandalwood Oil industry has offered some of the most significant advantages to medicine. Major players in the Sandalwood Oil market, including Albert Vieille SAS, Doterra International LLC, Eden botanicals, Santanol Group, Plant Therapy Essential Oils, Aditi Essentials, Haldin International, langyin Healthway, Kanta Enterprises, PerfumersWorld Ltd., Ancient Healer, Khadi Natural, Vedic Vaani, Cliara Essential Oils, and Sallamander Concepts Pty Ltd, are attempting to increase market demand by investing in research and development operations.

A chemical corporation is BASF SE (BASF). It manufactures, markets, and sells chemicals, polymers, crop protection products, and performance items. The company's product line includes solvents, adhesives, surfactants, fuel additives, pigments, paints, food additives, electronic chemicals, fungicides, and herbicides. The firm works with a wide range of sectors, including those related to building, woodworking, agriculture, paints and coatings, transportation, electronics and electrical, home care, nutrition, and chemicals. R&D is conducted by BASF in collaboration with international clients, partners, and scientists. A network of production sites supports the company's operations. It is present throughout North America, Asia Pacific, Europe, South America, Africa, and the Middle East. The headquarters of BASF are in Ludwigshafen, Germany. BASF Nutrition & Health announced the release of Isobionics Santalol, a substitute for sandalwood oil, in July 2020 as the result of their first joint venture. Santalol Isobionics is readily available and protects the environment. It consistently produces products of good quality and is unaffected by the weather or harvesting conditions.

Sandalwood plantations are handled by Santanol. Pure, natural, ethical, and sustainable sandalwood oils and products are produced and supplied by the company's sandalwood plantations, giving its clients access to high-quality goods with both medicinal and cosmetic uses. The Western Australian plantation and distillation business Alpha Santanol Pty., which cultivates, distils, and sells Indian sandalwood oil, announced its merger with Mercer International Inc. in October 2018.

Key Companies in the Sandalwood Oil market include

• Albert Vieille SAS


• Doterra International LLC


• Eden botanicals


• Santanol Group


• Plant Therapy Essential Oils


• Aditi Essentials


• Haldin International


• langyin Healthway


• Kanta Enterprises


• PerfumersWorld Ltd.


• Ancient Healer


• Khadi Natural


• Vedic Vaani


• Cliara Essential Oils


• Sallamander Concepts Pty Ltd

For instance, November 2022 The state of Karnataka has chosen to lift all restrictions on the cultivation and sale of sandalwood, which may benefit local farmers and the state's coffers.

For instance, November 2021 To increase sustainability, Quintis Sandalwood redesigned the oil distillation process. Quintis Sandalwood can now generate more oil at a higher rate thanks to the unique, completely automated method, which was inspired by continuous in-feed and out-feed systems frequently used in the paper industry.

Sandalwood Oil Market Segmentation

Sandalwood Oil Type Outlook

• Natural Sandalwood Oil


• Lab-created Sandalwood Oil

Sandalwood Oil Application Outlook

• Personal Care


• Pharmaceuticals


• Aromatherapy


• Others

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America