Synthetic Sandalwood Oil Market Size (2023 - 2030)

The global Synthetic Sandalwood Oil Market is estimated to be worth USD 0.2 Billion in 2022 & is projected to hit a value of USD 0.3 Billion by 2030, growing at a fast CAGR of 5.1% during the forecast period 2023-2030.

The Synthetic Sandalwood Oil Market is controlled by the increasing demand from the personal care and cosmetics industry due to its benefits such as anti-inflammatory, antiseptic, and calming properties. The rising consumer awareness about the harmful effects of synthetic fragrances has also led to the adoption of natural and organic alternatives, boosting the demand for synthetic sandalwood oil. Additionally, the market is witnessing the development of new technologies for the production of synthetic sandalwood oil, which is projected to amend the efficiency of the manufacturing process and reduce the cost of production. Moreover, the increasing use of synthetic sandalwood oil in the pharmaceutical industry for its therapeutic benefits is also projected to drive market growth in the coming years.

Industry Overview:

Synthetic sandalwood oil is a man-made alternative to natural sandalwood oil, which is extracted from the wood & roots of the sandalwood tree. The gaining demand for natural fragrances, matched with the limited availability of natural sandalwood oil, has led to the growth of the synthetic sandalwood oil market. The oil is widely used in the fragrance industry for making perfumes, soaps, candles, & other personal care products. It is also used in aromatherapy & traditional medicine for its calming and relaxing properties. The global synthetic sandalwood oil market is driven by the growing demand for luxury perfumes and personal care products, as well as the increasing use of aromatherapy for stress relief & relaxation. The market is projected to develop in the forecast period due to the increasing popularity of natural & organic products, which are often blended with synthetic fragrances like sandalwood oil. However, the market is also facing challenges due to the high cost of production & the environmental impact of synthetic fragrances.

COVID-19 Impact on the Synthetic Sandalwood Oil Market:

The COVID-19 pandemic has had a mixed impact on the synthetic sandalwood oil market. On one hand, there has been a rise in demand for personal care & cosmetic products, which often use synthetic sandalwood oil as a component. However, the pandemic has also led to a decline in manufacturing activities and supply chain disruptions, which have affected the production and distribution of synthetic sandalwood oil. Due to the pandemic-induced lockdowns and travel restrictions, the global trade of synthetic sandalwood oil has also been hampered. In addition, the closure of retail stores and reduced consumer spending have affected the demand for products containing synthetic sandalwood oil. However, as the global economy slowly recovers from the pandemic, the demand for synthetic sandalwood oil is projected to increase in the coming years. The increasing demand for sustainable and eco-friendly products and the rising popularity of aromatherapy are some of the factors that are projected to drive market growth post-pandemic.

Market Drivers:

Increasing demand from the fragrance industry helps to drive market growth:-

Synthetic sandalwood oil is widely used as a key ingredient in fragrances due to its soothing aroma. The rising demand for fragrances from the cosmetics, personal care, and perfumery industries is projected to drive the growth of the synthetic sandalwood oil market.

Growing popularity of aromatherapy helps to drive the market growth:-

Aromatherapy is gaining widespread popularity as a natural treatment for various health issues. Synthetic sandalwood oil is widely used in aromatherapy due to its therapeutic properties. The increasing adoption of aromatherapy for stress relief, pain management, and relaxation is projected to drive the demand for synthetic sandalwood oil in the coming years.

Market Restraints:

The Synthetic Sandalwood Oil Market's growth is being stifled by Limited Awareness and Acceptance:​​​​​​​

Synthetic sandalwood oil is a relatively new concept, & many consumers are not aware of its benefits and applications. Moreover, some traditional consumers may not be willing to switch to synthetic products & may prefer natural sandalwood oil instead. This limited awareness & acceptance of synthetic sandalwood oil can act as a restraint to the market's growth.

The Synthetic Sandalwood Oil Market's growth is being stifled by Stringent Regulations and Standards:​​​​​​​

Synthetic sandalwood oil is subject to various regulations and standards set by regulatory bodies, such as the Food and Drug Administration (FDA) & the International Fragrance Association (IFRA). Compliance with these regulations can be time-consuming & expensive, which can hinder the market's growth. Additionally, some regulations may restrict the use of certain ingredients, restricting the range of formulations available in the market.

Market Insights and Developments:

• In September 2021, Givaudan, a Swiss manufacturer of flavors, fragrances, & active cosmetic ingredients, announced that it had developed a new biotechnology platform to produce synthetic sandalwood oil. This innovation could revolutionize the industry by offering a sustainable, ethical, & cost-effective alternative to traditional sandalwood oil, which is obtained from endangered trees.

• In April 2020, the Indian government imposed a nationwide lockdown to contain the spread of COVID-19, which disrupted the supply chains of many industries, including the synthetic sandalwood oil market. The lockdown impacted the transportation of raw materials & finished products, leading to a shortage of supply and increased prices.

SYNTHETIC SANDALWOOD OIL MARKET REPORT COVERAGE:

Market Segments:

Synthetic Sandalwood Oil Market—By Type

• Isolated Compounds

• Blends

The synthetic sandalwood oil market can be segmented based on the type of product into isolated compounds & blends. Isolated compounds are typically single molecules extracted from natural or synthetic sources, while blends are combinations of multiple compounds. Blends are generally preferred in applications such as perfumes & personal care products, as they can offer a more complex & unique scent profile. However, isolated compounds are also popular in certain applications, such as aromatherapy & medicinal products, where the specific properties of individual molecules are desired. In recent years, there has been a maturation trend towards the use of natural & sustainable ingredients in the fragrance and personal care industry. This has led to an increased demand for natural sandalwood oil, which has become more expensive & scarce due to overharvesting and banned trade. As a result, synthetic sandalwood oil has emerged as a viable alternative for manufacturers. The use of isolated compounds and blends in synthetic sandalwood oil products allows for greater control over the fragrance profile and consistency of the final product, which has helped to drive demand in the market. Additionally, ongoing research and development efforts have led to the discovery of new and improved synthetic sandalwood oil compounds, which is projected to further fuel market growth in the coming years.

Synthetic Sandalwood Oil Market – By Application

• Personal Care & Cosmetics

• Aromatherapy

• Pharmaceuticals

• Homecare & Cleaning

• Others

The Synthetic Sandalwood Oil Market has witnessed significant growth due to its increasing applications across various end-use industries. The market can be segmented based on the application into personal care & cosmetics, aromatherapy, pharmaceuticals, homecare & cleaning, and others (food & beverages, etc.). The personal care & cosmetics segment is projected to hold the largest market share during the forecast period, owing to the rising demand for natural and organic ingredients in skincare products, coupled with the increasing awareness about the benefits of synthetic sandalwood oil. The aromatherapy segment is also anticipated to grow at a significant rate, owing to the increasing use of synthetic sandalwood oil in aromatherapy treatments for reducing stress and anxiety. Furthermore, the increasing use of synthetic sandalwood oil in pharmaceuticals for its anti-inflammatory, anti-viral, and anti-cancer properties is also projected to drive market growth. In the homecare & cleaning segment, the use of synthetic sandalwood oil in cleaning products is on the rise due to its antifungal & antibacterial properties. The food & beverages segment is also evaluated to witness significant growth due to the use of synthetic sandalwood oil as a flavouring agent in beverages & confectionery products. Overall, the Synthetic Sandalwood Oil Market is projected to see momentous growth in the coming years, driven by the increasing demand from end-use industries and the rising quality of aromatherapy & natural ingredients in personal care and cosmetics products.

Synthetic Sandalwood Oil Market – By End-Use Industry

• Commercial

• Individual Consumer

The Synthetic Sandalwood Oil Market can be segmented based on end-user into commercial and individual customers. The commercial end-user segment includes various industries such as personal care & cosmetics, pharmaceuticals, and homecare & cleaning. The individual customer segment includes consumers who purchase synthetic sandalwood oil for personal use. The personal care and cosmetics industry is the major end-user of synthetic sandalwood oil due to its various benefits such as anti-inflammatory, antibacterial, & anti-aging properties. Synthetic sandalwood oil is used in a variety of personal care products such as soaps, shampoos, perfumes, & lotions. The aromatherapy industry is also a momentous end-user of synthetic sandalwood oil due to its relaxing and calming properties. The pharmaceutical industry uses synthetic sandalwood oil in various medications due to its therapeutic properties, including its ability to reduce inflammation, lower blood pressure, and relieve anxiety. The homecare and cleaning industry is also a growing end-user segment due to the increasing demand for natural and sustainable cleaning products. Overall, the demand for synthetic sandalwood oil is projected to increase in both commercial and individual customer segments due to its versatile properties and applications in various industries.

Synthetic Sandalwood Oil Market – By Region

• North America

• Europe

• Asia-Pacific

• Rest of the World

The synthetic sandalwood oil market is segmented into regions such as North America, Europe, Asia Pacific, & Rest of the World. The Asia Pacific region is projected to rule the global synthetic sandalwood oil market in terms of consumption & production, owing to the significant demand from countries such as China, India, Japan, and South Korea. These countries are the largest consumers of personal care and cosmetic products, which is a key application area for synthetic sandalwood oil. Additionally, the growing population and rising disposable incomes in the region are projected to further boost market growth. North America and Europe are also projected to witness substantial growth in the coming years due to the increasing demand for natural fragrance ingredients and the presence of major fragrance manufacturers in the region. Furthermore, the rising adoption of aromatherapy and natural health remedies in these regions is also projected to drive demand for synthetic sandalwood oil.

Major Key Players in the Market:

1. Eastman Chemical Company

2. Eternis Fine Chemicals Limited

3. Fujian Green Pine Co. Ltd.

4. Guangzhou New Sino Biotech Co. Ltd.

5. Paramount Aromachem Pvt. Ltd.

6. Sigma-Aldrich Corporation

7. Symrise AG

8. The Good Scents Company

9. Treatt PLC

10. The Lebermuth Company, Inc.