Sandalwood Market Continues to Grow
The global sandalwood market is experiencing significant growth in 2025, driven by rising demand across personal care, aromatherapy, pharmaceuticals, and religious applications. Valued at approximately USD 352.46 million in 2025, the market is projected to reach USD 723.22 million by 2033, reflecting a compound annual growth rate (CAGR) of 9.4% .(globalgrowthinsights.com)
Market Dynamics
Sandalwood, particularly Indian sandalwood (Santalum album) and Australian sandalwood (Santalum spicatum), is highly prized for its aromatic oil and cultural significance. The oil's applications span from high-end perfumery to traditional medicine. The increasing consumer preference for natural and organic products has further propelled the demand for sandalwood-based items.(themarketreports.com)
India, Indonesia, and Australia are the leading producers, collectively accounting for over 70% of global production. India's rich heritage in sandalwood cultivation and oil extraction positions it as a key player, while Australia's sustainable plantation practices have made it a significant exporter .(wkinformation.com)
Challenges
Despite the positive outlook, the industry faces challenges such as overharvesting, illegal logging, and regulatory hurdles. In India, for instance, farmers in regions like Almora have struggled with market access due to the withdrawal of key purchasers, leading to financial losses . Additionally, the long maturation period of sandalwood trees, often exceeding 15 years, poses challenges for cultivation and supply consistency.(timesofindia.indiatimes.com)
Future Outlook
The sandalwood market is poised for continued growth, with projections indicating a value of USD 723.22 million by 2033. Innovations in sustainable cultivation and processing, along with expanding applications in wellness and personal care, are expected to drive this growth. However, addressing sustainability concerns and ensuring equitable market access for producers remain critical for the industry's long-term viability.(globalgrowthinsights.com, wkinformation.com)