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Market Definition:

Sandalwood essential oil is among the most valuable oil. It has an exotic and woody fragrance due to which it is considered to be an important ingredient in cosmetics, perfumes, and personal care products. It also has several health benefits such as it can be used as an antiseptic, antispasmodic, anti-inflammatory, and antiphlogistic. It can also be used as an astringent, disinfectant and diuretic. Although, the essential oil is used widely in aromatherapy owing to its calming and relaxing properties. Its medicinal benefits are yet to be explored, and therefore it is not widely used for medicinal purpose. However, it continues to be used extensively in fragrances and personal care products such as deodorants, soaps, lotions, cream and in various industrial products such as incense sticks, room fresheners, edibles, etc.

Market Scenario:

Sandalwood has been used by many Asian countries since ancient time and is considered to be an important ingredient owing to its several benefits and diverse application. Steam distillation, water (hydro) distillation, absolute (solvent extract), CO2 extracts, and a recent technology photonics process are different methods used for sandalwood oil extraction. India, Indonesia, Australia, and Timor are among the major producer of sandalwood. Indian sandalwood, namely S.album is considered to be of the highest quality due to its fixative properties and long-lasting fragrance and oil derived from it is highly in demand by food and cosmetic industries.

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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)

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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.