Increasing adoption of Sandalwood Oil in personal care products is driving the Sandalwood Market

Sandalwood Market Overview

Product Overview and Scope of Sandalwood

Sandalwood refers to a fragrant wood that comes from species of trees belonging to the genus Santalum. The most well-known and widely used species is the Santalum album, known as Indian sandalwood. It holds the highest concentration of a-santol and b-sotalol which is the chemical compounds accountable for sandalwood’s luxurious woody-floral scent. Sandalwood is highly valued for its distinctive aroma and has been used for several years in perfumes, soaps, beauty products, and traditional medicine. Today, sandalwood is the second most expensive wood globally. Sandalwood-producing countries, such as Australia, India, Indonesia, Vanuatu, and Tonga are setting new regulations relating specifically to the harvest, possession, and trade of wild sandalwood. 
Sandalwood is commercially harvested for its valuable heartwood, which contains the highest concentration of aromatic compounds. The wood is used in the production of perfumes, soaps, candles, and various cosmetic products. Sandalwood oil, obtained through steam distillation of the wood, is a highly popular ingredient in the fragrance industry. In addition, sandalwood holds significant cultural and spiritual importance in various traditions and religions, particularly in India and other parts of Asia. It is significantly used in religious ceremonies, meditation practices, and rituals.

Sandalwood Market – Global Industry Analysis

Market Drivers

• Increasing adoption of sandalwood oil in personal care products

The growth of the sandalwood market is primarily driven by the growing adoption of sandalwood oil in personal care products. Sandalwood oil is valued for its unique fragrance and various beneficial properties, making it a popular ingredient in a wide range of personal care and cosmetic products. In recent years, modern consumers have begun to seek out this woody oil for use in perfumes, cosmetics, and skincare products. For example, North Asia is the largest beauty and personal care product market. In 2021, North Asia held over one-third of the market, and China has increased its footprint to become the industry front-runner in this region.
Sandalwood oil is known for its potential skincare benefits. It has properties that can help soothe and moisturize the skin, reduce inflammation, and promote a healthy complexion. Sandalwood oil is used in facial cleansers, moisturizers, serums, and other skincare formulations targeting various skin concerns, such as dryness, irritation, and aging. Sandalwood is a light astringent, cleansing, and soothing oil that can be used in skincare. When added to moisturizers and cleansers, it has a calming and refreshing effect, helping create a deeply soothing and relaxing skincare ritual that adores the skin. Self-care is a major investment. For example, women in the US spend around USD 10 per day on beauty products. Haircuts, makeup, and skincare are the top 3 beauty care spending categories, totaling USD 85 per month. Thus, increasing the spending capacity of women followed by men for personal grooming is expected to augment the demand for sandalwood and its related products.

• Growing demand for wood crafts and decorative furniture

Global Sandalwood Revenue by Regions (2018-2023)

Global Sandalwood Revenue and Market Share (%) by Regions (2018-2023)

• Global Sandalwood market was valued at USD 820.29 million in 2022 and is expected to grow at a CAGR of 7.20% over the forecast period from 2023 to 2030.
• The current sandalwood price can cost around USD 200/kg.
• Sandalwood oil prices ranging from around USD 1750 kg−1 to USD 2100 kg−1 (Price may vary from country to country)

Global Sandalwood Market Segmentation

By Type

•    Australian Sandalwood
•    Indian Sandalwood

By Santalol

•    Alpha Santalol
•    Beta Santalol

By Application

•    Personal Care
•    Aromatherapy
•    Pharmaceuticals
•    Others

By Distribution Channel

•    Direct Distribution Channel
•    Indirect Distribution Channel

Global Sandalwood Market Players

• Quintis Ltd 
• WA Sandalwood Plantations Pty Ltd
• Santanol Group
• Mukinbudin Sandalwood Factory

Global Sandalwood Market, by Type

Indian Sandalwood segment held the largest market share and is expected to grow at the fastest CAGR during the forecast period, 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.

Global Sandalwood Market, by Type

Source: Cognitive Market Research

Related Reports

• Global Sandalwood Essential Oil Market
• Global Personal Care Sandalwood Oil Market 
• Global Sandalwood Extract Market
• Global sandalwood soap market
• Global Aromatherapy Sandalwood Essential Oils market
• Global sandalwood perfume market
• Global Sandalwood Powder market

Global Sandalwood Manufacturers Profiles/Analysis

Quintis Ltd

Quintis Ltd Company Basic Information, and Sales Area

Business Segment/ Overview:

Quintis Ltd is an Astralia-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.

Sandalwood Product Types Specification

Business Strategy

Quintis Ltd focuses on building and managing environmentally friendly sandalwood plantations. Further, the company ensures a long-term supply of quality sandalwood for its products by nurturing sandalwood trees. In addition, the company is engaged in research and development to explore new applications and potential benefits of sandalwood which enables them to increase the array of their products and enter new markets.