Sandalwood Extract Market Outlook Through 2031

New York, US – September 24, 2025 – The Insight Partners has published a comprehensive market research report titled “Sandalwood Extract Market Share, Size, Trends, and Forecast by 2031.” The study projects a steady growth trajectory for the global sandalwood extract market over the forecast period, driven by rising demand from multiple sectors, including cosmetics, personal care, wellness, aromatherapy, and pharmaceuticals. The report outlines current market dynamics, key growth drivers, emerging trends, challenges, and opportunities for industry stakeholders.

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Key Factors Driving Market Growth

1. Increasing Use in Personal Care and Cosmetics

Natural and plant-based ingredients are becoming the preferred choice in the beauty and skincare industry. Sandalwood extract, known for its anti-inflammatory, antimicrobial, and aromatic qualities, is increasingly used in premium skincare products, perfumes, lotions, and creams. As consumer demand shifts toward cleaner and more effective formulations, sandalwood remains a favored natural alternative.

2. Rising Popularity of Aromatherapy and Wellness Products

Sandalwood’s distinctive calming aroma makes it a staple in aromatherapy practices. With the global focus on mental well-being and stress management, especially in a post-pandemic world, the demand for natural wellness solutions has grown. Sandalwood extract is widely utilized in essential oils, massage products, diffusers, and spa treatments, enhancing its market appeal.

3. Growing Demand for Organic and Clean-Label Products

The increasing consumer shift toward eco-conscious and chemical-free lifestyles has strengthened demand for organic and sustainably sourced botanical extracts. Sandalwood extract, being both natural and effective, is being integrated into reformulated personal care and wellness products to align with consumer values around health and environmental responsibility.

4. Expanding Applications in Pharmaceuticals and Therapeutics

Sandalwood extract continues to be valued in traditional medicine and is gaining momentum in modern pharmaceutical formulations. It is recognized for its antiseptic, anti-inflammatory, and potential anti-cancer properties. This is especially notable in Asian countries where Ayurveda and herbal medicine practices are widely followed and are influencing product development globally.

5. Rising Awareness of Natural Benefits

Consumer education about the therapeutic and aromatic benefits of sandalwood has also contributed to its rising popularity. From high-end candles and incense to massage oils and natural remedies, sandalwood’s versatility and enduring fragrance make it a top choice in various personal care and wellness applications.

6. Demand Surge in Premium Fragrances and Lifestyle Products

Sandalwood’s long-lasting and luxurious scent is ideal for high-end perfumes, stress-relief formulations, and bespoke wellness products. With growing consumer interest in personalized beauty and lifestyle items, the demand for unique natural fragrances like sandalwood continues to grow.

Emerging Market Trends

1. Ethical and Sustainable Sourcing Practices

Concerns over deforestation and overharvesting have led to a growing emphasis on sustainability. Countries like India and Australia are taking the lead with regulated plantations and reforestation initiatives. As ethical sourcing becomes a priority, brands are increasingly seeking certified and traceable sandalwood sources to meet environmental and consumer standards.

2. Technological Improvements in Extraction Methods

Advanced techniques such as supercritical CO2 and fluid extraction are replacing traditional steam distillation. These new methods enhance yield, ensure higher purity, and are more environmentally friendly. The resulting innovations are making sandalwood products more accessible and diverse in application.

3. Customization and Personalization in Beauty Products

As consumers seek out products tailored to their unique needs and preferences, sandalwood's flexibility makes it ideal for inclusion in customized skincare, haircare, and fragrance products. Its compatibility with various skin types and rich aromatic profile further reinforce its value in bespoke formulations.

Recent Developments

One notable development occurred in June 2025, when Karnataka Soaps and Detergents Limited (KSDL) announced plans to expand its iconic Mysore Sandal Soap and related product lines into European markets. This strategic move highlights the increasing international demand for authentic, sandalwood-based products.

Leading Companies in the Market

Several key players are shaping the future of the sandalwood extract industry through innovation and global expansion. These include:

• Jiangxi Xuesong
• Jiangxi Jishui Natural Essential Oil Factory
• Sandalwood Forest
• KS and DL
• Essentially Australia
• Katyani Exports
• Naresh International
• RK-Essential Oils Company
• Santol Group

Future Outlook

The outlook for the sandalwood extract market remains strong, supported by sustainable cultivation, ethical sourcing, and advanced processing technologies. As awareness of its therapeutic and aromatic benefits grows, especially among health-conscious and eco-aware consumers, sandalwood is positioned to play a pivotal role in the luxury wellness and beauty sectors. Its applications across pharmaceuticals, natural products, and premium lifestyle goods suggest ongoing expansion and innovation in the years ahead.

Market Analysis and Access to Full Report

The Insight Partners’ analysis emphasizes how consumer trends, technological innovation, and sustainability concerns are reshaping the sandalwood extract landscape. Businesses in this space are actively diversifying their portfolios and aligning with market trends to maintain competitiveness.

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