Sandalwood Oil Market Key-Region, Leading Players, On-going Demand and Forecast by 2026

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Market Outlook

Growing beauty consciousness has fuelled the demand for sandalwood oil. Sandalwood oil plays an important role in perfumeries as it has an exotic woody-floral scent which tempts consumers. Apart from perfumeries, sandalwood oil is also used as facial cleansing oil, anti-wrinkle ingredient, and as a moisturizing agent in the cosmetic and personal care industries. Sandalwood oil has also found usage in personal care products such as bathing soaps, shampoos, body lotions, etc. over the years. Sandalwood oil is predominantly produced in Asia Pacific, particularly in India and Indonesia where sandalwood trees are abundantly available. Sandalwood oil is predominantly imported by the U.S. and France due to increased demand for sandalwood oil in cosmetic products. Increasing application of sandalwood oil is driving the production and consumption of sandalwood oil across the world. Along with cosmetics, sandalwood oil has growing demand for commercial consumer products such as incense sticks, room fresheners, aroma therapeutic blending etc. due to increasing demand for the natural aromatic products among the consumers. The multi-utility for sandalwood oil is anticipated to grow positively in the forecast period.

Market Dynamics

Natural perfumeries always have a huge demand among the consumers all over the world. Sandalwood oil is universally traded and supplied to various industries as it forms an active ingredient. Along with cosmetics and personal care, sandalwood also processes aroma therapeutic properties which find its application over massaging and spa. Sandalwood oil is known for its medicinal application in treating somatic and mental disorders due to the presence of α-santalol. Increasing natural cosmetic products and escalating consumption of aromatic compounds have generated demand for sandalwood oil. As the seeds of sandalwood are easily available from the plants and multiplied by natural propagation, the production of sandalwood oil can be amplified.However, older plants produce higher sandalwood oil than younger ones. Sandalwood oils are marketed at expensive prices than other essential oils due to its unique properties. The sandalwood oil is expected to proliferate in terms of value & volume due to growing beauty consciousness and widening hospitality services.

Global Sandalwood oil: Key Players

Some of the major key players of Sandalwood oil includes Albert Vieille, Doterra International LLC, Eden Botanicals, Santanol Group, Plant Therapy Essential Oils, Aditi Essentials, Haldin International, Jiangyin Healthway, Kanta Enterprises, PerfumersWorld, etc. Several industrialists and cosmetic and personal care product developers are showing keen interest in sandalwood oil as there has been a significant increase in its demand.

Opportunities for market participants:

As a natural cosmetic ingredient, sandalwood oil has emerging demand among the consumers and product developers all over the world. In addition, sandalwood oil is produced as a food-grade edible oil for cooking purposes in GCC countries. Due to diversified supply chains all over the world, it would be anticipated that there would be higher returns for the investors of sandalwood oil in the future. 

Global Sandalwood oil: A Regional Outlook

Sandalwood oil is widely used across the world due to its ample applications. Sandalwood oil is predominantly produced and exported from countries in Asia Pacific including India, Australia, Japan, China and Indonesia due to optimal climatic condition for the sandalwood cultivation. In North America, the sandalwood oil is predominantly imported to meet the demands of cosmetics and personal care products, despite sandalwood being produced in the region of Hawaii. It is also highly imported in Europe as sandalwood oil serves applications in hospitality services such as spa and massage. In Latin America, the sandalwood oil is used for medicinal applications as sandalwood oil has antiseptic, anti-inflammatory and memory boosting properties. In the Middle East and Africa, sandalwood cultivation and processing have germinated recently with high scope, however, sandalwood oil is used for cooking purpose in the GCC region. Bound to these factors, the growth of the global sandalwood oil market is expected to remain positive over the forecast period.

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