The sandalwood oil market is steadily expanding as consumers increasingly prioritize natural fragrances and holistic lifestyle products. Renowned for its distinctive woody aroma and long-standing traditional value, sandalwood oil has transitioned into a key ingredient across wellness, personal care, and aromatherapy applications. This shift reflects a broader movement toward natural solutions that support both physical and emotional well-being.
As per Market Research Future analysis, the Sandalwood Oil Market Size was estimated at 0.11 USD Billion in 2024. The sandalwood oil industry is projected to grow from USD 0.1177 Billion in 2025 to USD 0.2313 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.99% during the forecast period 2025–2035. These figures highlight the growing commercial relevance of sandalwood oil within the global essential oils sector.
One of the primary factors driving the sandalwood oil market is the increasing consumer preference for natural fragrances over synthetic alternatives. Natural oils are perceived as safer, more authentic, and aligned with sustainable lifestyles. Sandalwood oil’s warm, long-lasting aroma makes it highly desirable for fragrance-based applications.
This shift is especially visible in wellness-oriented products where fragrance plays a key role in creating calming and therapeutic environments.
Aromatherapy has emerged as a major growth driver for the sandalwood oil industry. Consumers are using essential oils to manage stress, improve mood, and enhance relaxation. Sandalwood oil is particularly valued for its grounding and calming properties, making it a popular choice in diffusers and massage therapies.
The rise of home-based wellness routines has further boosted demand, as consumers integrate aromatherapy into daily life.
Sandalwood oil continues to gain traction in skincare and personal care formulations. Its fragrance profile and perceived skin-soothing qualities contribute to its popularity in products designed for hydration, calming, and rejuvenation. Consumers seeking premium botanical ingredients are driving increased usage in this segment.
The oil’s compatibility with other natural ingredients enhances its versatility in personal care formulations, supporting sustained demand.
Cultural and spiritual traditions play a vital role in sustaining the sandalwood oil market. In many regions, sandalwood oil holds ceremonial and symbolic importance. These traditional uses coexist with modern commercial applications, creating a diverse and resilient demand base.
Traditional medicinal practices also contribute to long-term consumption, reinforcing the oil’s relevance across generations.
Sustainability concerns are becoming increasingly important as demand for sandalwood oil grows. Consumers are showing greater interest in responsible sourcing and environmental preservation. This awareness is influencing purchasing behavior and encouraging mindful consumption.
Long-term market growth is expected to depend on balancing increasing demand with sustainable resource management.
The sandalwood oil market is expected to maintain steady growth throughout the forecast period. Rising interest in wellness products, natural fragrances, and holistic lifestyles will continue to support demand.
With the market projected to reach USD 0.2313 Billion by 2035 and maintaining a CAGR of 6.99%, the industry presents strong long-term opportunities. Continued integration of sandalwood oil into wellness and personal care products will remain central to future growth.
1. What was the value of the sandalwood oil market in 2024?
The market was valued at 0.11 USD Billion in 2024.
2. What is the projected growth rate of the sandalwood oil industry?
The industry is expected to grow at a CAGR of 6.99% from 2025 to 2035.
3. What will be the sandalwood oil market size by 2035?
The market is projected to reach USD 0.2313 Billion by 2035.
4. Which applications are driving sandalwood oil demand?
Key applications include aromatherapy, wellness practices, personal care, and traditional uses.
5. Why is sandalwood oil preferred in natural fragrance products?
It is preferred due to its rich aroma, natural origin, and association with calming and holistic benefits.
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