Sandalwood Market Size, Share, Growth, and Industry Analysis, By Type (Indian Sandalwood, Australian Sandalwood, and Others), By Application (Personal Care, Aromatherapy, Pharmaceuticals, Sculpture, Furniture, and Others), Regional Forecast To 2033

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SANDALWOOD MARKET REPORT OVERVIEW

Global sandalwood market size was USD 0.34 Billion in 2024 and market is projected to touch USD 0.78 Billion by 2033, exhibiting a CAGR of 9.4% during the forecast period.

Sandalwood is a type of fragrant wood that comes from the sandalwood tree, which is native to India, Indonesia, and other parts of Southeast Asia. It is highly valued for its distinctive fragrance and is used in various religious, cultural, and medicinal practices. Also, it has a sweet, woody, and warm aroma that is calming and soothing. It is often used in perfumes, incense, and aromatherapy products due to its pleasant scent and therapeutic properties. Further, in traditional medicine, sandalwood has been used to treat various conditions such as inflammation, skin problems, and digestive issues. It is also believed to have antibacterial and antifungal properties.

The market is predicted to rise at a significant CAGR due to the rise in traditional medicine, to cure inflammation, skin problems, and digestive issues and the growing use of sandalwood in aromatherapy. In addition, the market is segmented by type, by application, and by region. Australian sandalwood is the largest type of product in demand. Furthermore, an increasing inclination toward organic products is anticipated to fuel market growth in the future.

COVID-19 IMPACT

"Pandemic Confines the Trade of Sandalwood & harvesting"

The COVID-19 pandemic has had a significant effect on the sandalwood market, particularly in India where the majority of sandalwood is produced. Due to the lockdowns and restrictions on movement and trade, harvesting, processing, and exportation were disrupted, leading to a decline in the supply of sandalwood. This has resulted in an increase in the price of sandalwood products. Although, the sandalwood market has a short-term decrease in supply and demand, but there is a potential long-term opportunity for sustainably harvested sandalwood products in the future.

LATEST TRENDS

"Growing Consumer Preferences on Organic & Sustainable Products Expand the Market"

The sandalwood market has seen several trends in recent years, driven by changing consumer preferences and increasing focus on sustainability and natural products. Some of the latest trends in the market such as rise in demand for organic and sustainable products, a shift towards natural fragrances, the rising popularity of sandalwood-based skincare, and an increase in sandalwood plantations. These trends are expected to enhance the demand for it in the market which leads to augment the market growth in forthcoming years.

SANDALWOOD MARKET SEGMENTATION

By Type Analysis

According to type, the market can be bifurcated into Indian Sandalwood, Australian Sandalwood, and Others.

By Application Analysis

Based on application, the market can be divided into Personal Care, Aromatherapy, Pharmaceuticals, Sculpture, Furniture, and Others.

DRIVING FACTORS

"Rising demand for sandalwood in pharmaceuticals and Aromatherapy to Enhance Growth of the Market"

The sandalwood market is driven by numerous factors which lead to an increase in the growth of the market such as the increasing demand for sandalwood. As it is known for its unique fragrance and is used extensively in the production of perfumes, incense, and other fragrances. Along with this, it has been used for centuries in traditional medicine due to its antiseptic, anti-inflammatory, and calming properties. The demand for sandalwood is also driven by its use in the production of pharmaceuticals and other healthcare products. Therefore, the demand for it is contributing to the sandalwood market growth and will cater during the forecast period.

"Growing Demand for the Product in Religious and Spiritual Practices Drives the Market Growth"

Another driving factor is the usage of sandalwood in religious practices. It is considered one of the sacred woods in many religions and is used in various spiritual activities. The demand for sandalwood is driven by the use of this wood in religious ceremonies and as offerings.

Additionally, as it is a slow-growing tree that can take up to 30 years to reach maturity, and it can only be harvested once it has reached a certain age. The limited supply of sandalwood has made it a valuable commodity, and the demand for this wood is often driven by its scarcity.

RESTRAINING FACTORS

"Limited Distribution and Environmental Regulations Could Impede the Growth of the Market"

The sandalwood market has some barriers that can obstruct its growth of the market which include, limited distribution as it is primarily grown in a few countries, such as India and Indonesia, which limits its availability on the global market. As well as, some countries have strict environmental regulations that restrict the harvesting and export of sandalwood, which can be a bottleneck for its availability and increase its price. Illegal harvesting decreases the supply and raised the price of wood.

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SANDALWOOD MARKET REGIONAL INSIGHTS

"Asia Pacific Dominates the Market due to the Highest Production in the Region"

With regard to regional insights, Asia Pacific leads the sandalwood market with the highest revenue growth rate during the projection period. Australia is the largest country in the market followed by India and Indonesia. More than seventy percent of the market revenue is generated by these countries. As it is majorly produced by these nations and their production rate is higher than any other region. Therefore, the sandalwood market shares are prominently held by these countries which are contributing to enhancing the growth rate of the market in the coming years as well.

KEY INDUSTRY PLAYERS

"Key Players Emphasis on Sustainable Policies to Acquire Maximum Revenue "

In respect of key players in the sandalwood market, the top companies provide the best quality of sandalwood to various industries such as pharmaceuticals, furniture, sculpture, and others to expand profit revenue. The major companies’ emphasis is on mergers, acquisitions, and collaboration with small and medium enterprises to increase their production and supply chain. Along with this, they focus on strategies for sustainable policies to gain long-term profit. Additionally, eminent companies such as Quintis, FPC, WA Sandalwood Plantations, Australian Sandalwood, Santanol Group, KS&DL, Sandalwood Forest, and others. The top three companies occupied the largest shares of the market.

List of Top Sandalwood Companies

• Quintis
• FPC
• WA Sandalwood Plantations
• Australian Sandalwood
• Santanol Group
• KS&DL
• Sandalwood Forest

REPORT COVERAGE

This report describes the sandalwood market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.