Sandalwood Market Report 2025 (Global Edition)

Global Sandalwood Market Report 2025 Market Size Split by Type (Australian Sandalwood, Indian Sandalwood), by Application (Personal Care, Aromatherapy, Pharmaceuticals, Others), by Distribution channe...

Sandalwood Market Report Description

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How 2025 Tariffs Are Reshaping the Consumer Goods Industry

In 2025, the global trade landscape has shifted dramatically following the U.S. introduction of sweeping tariffs under President Donald Trump’s administration. These "Liberation Day Tariffs," launched in April, aim to reduce trade deficits and boost domestic manufacturing. Tariffs range from 10% on imports from countries like the UK and Australia to 46% on Vietnamese goods, with a blanket 34% tariff on many Chinese imports and 25% on all steel, aluminum, and auto parts. This policy heavily impacts the consumer goods sector apparel, appliances, packaged foods, and personal care products due to their deep reliance on global supply chains, especially in Asia. U.S.–China trade tensions have intensified, with reciprocal tariffs reaching up to 145% on U.S. goods and 125% on Chinese exports, while China’s trade surplus with the U.S. hit USD 102.6 billion in March 2025. In response, the EU and Canada have implemented retaliatory measures, signaling a broader shift toward protectionism.

The consumer goods industry is feeling immediate effects: production costs are rising, sourcing is delayed, and inflation pressures are mounting. Apparel and footwear now face 25% tariffs, prompting brands to seek nearshoring options or raise prices. Household appliances incur 20% tariffs, complicating inventory and procurement strategies. Packaged foods and beverages are hit with 10–15% tariffs, impacting contracts and leading to supplier diversification and product reformulation. Personal care firms face higher costs for imported ingredients and packaging, leading to local sourcing efforts and delays in new product launches. Meanwhile, electronics, though temporarily exempt, are preparing for possible disruptions by diversifying suppliers and increasing inventories.

China remains the backbone of U.S. consumer goods sourcing, accounting for a large portion of imports either directly or through upstream components. This makes tariffs on Chinese goods especially disruptive. The rising input costs 15–30% in many categories combined with seasonal pressures and tight timelines, are causing delays and increased costs. Smaller brands, in particular, are struggling due to limited capital and reduced supplier leverage. Many are being forced to increase prices, cut product variety, or compromise on quality.

Market research is now critical to navigating this volatile environment. It supports supplier mapping and risk assessment, helping brands identify alternative sourcing countries with stable regulations and quality control. It also aids in cost and margin analysis, guiding decisions on pricing and sourcing changes. Optimization of product design and materials through research allows companies to reduce costs while maintaining consumer expectations. Additionally, research helps assess consumer price sensitivity, enabling strategic repositioning. Tracking regulatory changes and running scenario planning models allow firms to anticipate and adapt to future trade shifts.

To cope, companies are restructuring their global sourcing models. Major brands like Nike and IKEA are expanding operations in Vietnam, India, and Mexico, while embracing “in-market for market” strategies to reduce exposure to tariffs and logistics risks. Many are adopting AI-driven demand forecasting and automated procurement, and pushing suppliers for transparency. Product redesign and SKU rationalization are also common. The most successful firms are those using data-driven insights, operational flexibility, and strategic supplier partnerships to adapt not just survive in this new era of global trade.

Sandalwood Market Insights Video

Company Profile

Quintis Ltd

Quintis Ltd is an Australia-based company engaged in providing natural, ethical & sustainable Indian and Australian sandalwood raw materials for every industry. The company provides the product as sandalwood oil, sandalwood powder, sandalwood chips, and, sandalwood logs. Furthermore, the product is used in various industries such as aromatherapy, Fragrance, used in carvings for handicrafts and furniture, incense, skincare & cosmetics, and traditional Chinese medicine industries.

Top Companies Market Share in Sandalwood Industry: (In no particular order of Rank)

• Quintis Ltd
• Forest Products Commission of Western Australia (FPC)
• WA Sandalwood Plantations Pty Ltd
• Santanol Group
• Karnataka Soaps and Detergents Limited
• Mukinbudin Sandalwood Factory
• Others
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Sandalwood Market Regional Analysis

Region and country analysis section of Sandalwood Industry Analysis has been segmented into 5 major region such as North America, Europe, Asia Pacific, Middle East & Africa ,and Latin America (along with respective major contributing countries) and provides the revenue share, current trends.

The base years considered for all the estimations by analyzing trends and growth rate will help you gain an in-depth understanding of the conclusions provided in this report. This report also includes figures, graphs, pie charts, tables and bar graphs that explain the data analysis based on current trends at the country level as well as key regions. This research report also focuses on assessing factors such as profit, product price, capacity, production, supply demand market growth rate along with others to create a clear picture on the future prospects of Sandalwood market.

The current report Scope analyzes Sandalwood Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

Sandalwood Market Analysis

By Type, Indian Sandalwood segment held the largest share of the Sandalwood Market!

Indian Sandalwood segment held the largest market share and is expected to grow at the fastest CAGR during the forecast period of 2023-2030. This is attributed to Indian sandalwood is known for its powerful, woodsy scent. In many cultures, Indian sandalwood has significant religious and cultural importance. Indian sandalwood oil is also recognized for use in the personal care and cosmetics sectors. It is a highly sought-after component in high-end soaps, lotions, creams, and other beauty products due to its smell as well as potential skincare advantages that drive the demand for Indian sandalwood in the global market.

• Australian Sandalwood
• Indian Sandalwood

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Sandalwood Industry. Request a Free Sample PDF!

Sandalwood Market, by Application

Personal Care

Sandalwood has a wide range of applications in cosmetics and beauty care products as it has powerful emollient, anti-inflammatory, and antiseptic properties, used in perfumes, as it imparts aroma flavor, and used in moisturizers, shampoos, creams, and sunscreen. The sandalwood stick is used in homemade packs, its powder is used in the face packs, and its paste can be applied on the skin providing acne-free skin, removing tanning, protecting skin, and providing glowing skin. The powder or sandalwood stick’s paste is mixed with saffron to apply on the face or skin. It has cooling or soothing properties, a relaxant, used in other beauty soaps.

Aromatherapy

The heartwood of the sandalwood tree retains aroma flavor, due to this benefit, it is used in perfumery, and aroma therapy, the aroma present in sandalwood absorbs through the skin and is useful in controlling emotions, helps in relieving mental stress, and sleep disorders.

Pharmaceuticals

Sandalwood is used in the healthcare sector due to its beneficial properties such as anti-inflammatory, treating dermatological conditions, including eczema, psoriasis, acne, anti-microbial, anti-proliferative agent, antiseptic, astringent, anticancer properties, diuretic, treats urinary infection, useful in the treatment of stomach, headache, the bark of wood is used to treat dandruff, skin inflammation. In Ayurvedic medicine, sandalwood is used for mental and physical disorders such as anxiety, fatigue, insomnia, diarrhea, gallbladder, high blood pressure, etc.

Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Sandalwood Distribution channel Segment Analysis

Direct Distribution Channel

The sandalwood market key players focused on sustainable supply or distribution of sandalwood. In this direct channel of distribution, key players of the market sell sandalwood directly to the consumers through their website, where consumers are aware of the benefits of products and physical shops. This channel of distribution is an expensive process and key players have their own supply chain network, which supplies directly to the consumers and provides quick, efficient delivery of the product. The manufacturer manages the distribution, and no third-party selling system is involved in the process.

Indirect Distribution Channel

Indirect distribution channel involves third-party selling services. Products are provided to consumers through distribution channels. The third-party service providers shipping services to deliver a product to the consumers. The key players such as Eden Botanicals, and Khadi Natural provides their product to a third-party company and they sell their products to consumers through E-commerce, hypermarkets, pharmacies, and specialty stores.

• Direct Distribution Channel
• Indirect Distribution Channel

The base years considered for all the estimations by analyzing trends and growth rate will help you gain an in-depth understanding of the conclusions provided in this report. This report also includes figures, graphs, pie charts, tables and bar graphs that explain the data analysis based on current trends at the country level as well as key regions. This research report also focuses on assessing factors such as profit, product price, capacity, production, supply demand market growth rate along with others to create a clear picture on the future prospects of this market.

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

LinkedIn

Profile

I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

Author's Conclusion