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Market Definition:

Sandalwood oil is an essential oil sourced from a small tropical tree known as Indian sandalwood or Santalum album. Its color ranges from pale yellow to golden yellow and is popular for its woody- floral smell. Sandalwood oil creates a calming and harmonizing effect in the minds. Moreover, it holds various attributes such as antiseptic, anti-inflammatory and astringent which is driving the market in pharmaceutical industry as well. Additionally, sandalwood oil has become an integral part in cosmetic products owing to its various skin beneficial attributes.

Market Scenario:

Sandalwood oil is an oil derived from steam distillation of chips and billets cut of various species of sandalwood tree. It has gained popularity majorly due to its woody-floral scent. Apart from the smell, sandalwood oil has many characteristics which has made it useful and beneficial for health and wellness. It holds various attributes such as antiseptic, anti-inflammatory and astringent which has increased its applicability in pharmaceuticals.

Increasing concern of skin health among the rising population is driving the market growth of sandalwood oil. Moreover, the historic presence of sandalwood oil in various customs where it is being used from cradle to cremation is adding fuel to the market growth of sandalwood oil. However, the availability of natural sandalwood oil has become rare and expensive which may restraint the growth of sandalwood oil market. Nevertheless, all these factors are projected to contribute to the estimated CAGR of 7.2% of sandalwood oil market during the forecast period 2017-2023. 

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Key Players:

Some of the key players profiled in the global sandalwood oil market: Doterra International Llc. (U.S.), Eden Botanicals (U.S.), Plant Therapy Essential Oils (U.S.), Santanol Group (Australia), Sallamander Concepts Pty Ltd (South Africa), Healing Solutions (U.S.), and Khadi Herbal (India)

Key Findings:

Sandalwood essential oil is majorly imported by the US from countries such as China, India, Mexico, and Germany

The major exporting countries include India, China, Canada, and Germany

Intended Audience:

Cosmetics industry

Pharmaceutical industry

Aromatherapy industry

Raw material suppliers

Traders, importers, and exporters


On the basis of the type it is segmented into natural and synthetic. Out of this, natural sandalwood oil is growing compared to synthetic sandalwood oil due to the certain allergic effect caused among the sensitive skinned population from chemicals used in synthetic sandalwood oil.

On the basis of application, it is segmented on the basis of personal care products, pharmaceuticals, aromatherapy and others. Among all, a personal care product is dominating the market. Increasing demand for fragrant personal care products among the rising population is playing a vital role in increasing application of sandalwood oil in the personal care industry.

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Regional Analysis

The global sandalwood oil market is segmented into North America, Europe, Asia Pacific and rest of the world (RoW). Asia Pacific is dominating the market followed by North America. China and India are dominating the sandalwood oil market in Asia Pacific based on the historic presence of sandalwood oil in the customs and traditions of this region.

European market is attracting sandalwood oil majorly for aromatherapy. Moreover, the Middle East and Africa hold an opportunistic market for sandalwood oil. Additionally, the U.S., China, Japan, Germany and Singapore are the major importers in this market.

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