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Introduction
Introduction
Sandalwood has been revered for centuries — for its fragrance, its medicinal value, and its cultural importance. Today, White Sandalwood (Santalum album) stands at the crossroads of tradition and sustainability, emerging as one of the most promising long-term green investments for farmers, investors, and climate-conscious citizens alike.
At Sustainogram, we’re driving a vision that combines regenerative agriculture, carbon credit generation, and sustainable forestry — where every White Sandalwood tree planted becomes a living asset for the next 15 years and beyond.
Why ?
Why ?
White Sandalwood is not just a tree — it’s a green economy multiplier.
It grows well across semi-arid regions of India and has high economic, ecological, and carbon value.
Wild Harvesting of Sandalwood is Reducing (Low Availability & Government Restrictions). Market is Moving towards Cultivation.Regulated Future.
Primary Uses of White Sandalwood
Primary Uses of White Sandalwood
Perfumery & Fragrance Industry
Perfumery & Fragrance Industry
The essential oil (sandalwood oil) is a prized fixative and base note in luxury and niche perfumes. Its long-lasting woody, creamy aroma smooths volatile top notes and stabilizes blends.
Even small concentrations of natural sandalwood oil substantially raise product value; hence demand remains strong among high-end perfumers worldwide.
Cosmetics & Personal Care
Cosmetics & Personal Care
Used in premium soaps, creams, aftershaves, and hair oils for fragrance and purported skin benefits.
Natural sandalwood oil appears in formulations marketed for calming scent profiles and “natural luxury” positioning.
Traditional Medicine & Ayurveda
Traditional Medicine & Ayurveda
In Ayurveda, sandalwood paste and oil have been used for skin disorders, as an anti-inflammatory, mild antiseptic, and for cooling applications.
Traditional Chinese and Southeast Asian medicine have also used sandalwood extracts in formulations.
Religious, Cultural, and Ceremonial Uses
Religious, Cultural, and Ceremonial Uses
Sandalwood paste and chips are used in Hindu, Buddhist, and other religious rituals (tilak, temple incense, funeral rites) across South and Southeast Asia.
The wood and oil are used for carved idols, prayer beads, and sacred objects — creating a persistent cultural demand.
Aromatherapy & Wellness
Aromatherapy & Wellness
Sandalwood essential oil is a popular aromatherapy oil for meditation, relaxation, and stress relief; its sedative and balmy aroma is widely used in wellness spas and premium diffusers.
Woodcraft & Carving
Woodcraft & Carving
High-quality heartwood is carved into small decorative articles, boxes, sculptures, and handicrafts. This luxury woodcraft market exists in India and in export markets (Middle East, East Asia, Europe).
White Sandalwood Parts and Their Uses.
White Sandalwood Parts and Their Uses.
A Comparsion of White and Red Sandalwood
A Comparsion of White and Red Sandalwood
Global Demand & Supply of White Sandalwood
Global Demand & Supply of White Sandalwood
🌍 A Precious Commodity with Soaring Global Demand
White Sandalwood (Santalum album), often known as Indian Sandalwood, has long been prized for its distinct fragrance and therapeutic qualities. In recent years, it has evolved from a traditional aromatic wood into a high-value sustainable resource, powering industries like perfumery, cosmetics, wellness, and Ayurveda.
According to Kings Research (2024), the global sandalwood market was valued at approximately USD 358.3 million in 2023 and is projected to reach USD 583.1 million by 2031, growing at a CAGR of 6.36 % between 2024 and 2031. Within this, White Sandalwood (Santalum album) commands the largest market share — about 42 % of total global sandalwood trade — due to its premium oil quality and deep cultural association across Asia, the Middle East, and Europe.
The major drivers behind this growing demand include:
Rising consumer preference for natural and plant-based ingredients in perfumes and cosmetics
Expanding Ayurvedic, wellness, and aromatherapy industries globally
Increasing recognition of sandalwood as a climate-positive, high-value agroforestry crop
Yearly Global Demand and Supply
Yearly Global Demand and Supply
Figures are indicative, based on global research estimates (IWST, DownToEarth, ATREE, WA Sandalwood Reports). Actual trade volumes may vary due to unrecorded transactions and species differences.
The Global Supply Shortage
The Global Supply Shortage
Despite its commercial potential, White Sandalwood remains severely under-supplied.
India currently produces only about 350–400 tons of sandalwood annually, meeting barely 10 % of global demand.
Historically, India’s output has fallen from 4,000 tons/year in the 1960s to less than 400 tons/year today — a decline of nearly 90 %.
Global demand for Santalum album alone is estimated at 5,000–6,000 tons per year, leaving a huge and persistent supply gap.
This scarcity stems from decades of over-exploitation, illegal harvesting, disease outbreaks, and stringent state controls that once limited private cultivation. With the liberalization of sandalwood farming across many Indian states (including Karnataka, Tamil Nadu, Chhattisgarh, and Madhya Pradesh), a new wave of sustainable private plantations is emerging to fill this gap.
Yearly Indian Supply in Comparision to Global Supply
Yearly Indian Supply in Comparision to Global Supply
Institute of Wood Science & Technology (IWST) notes that India currently produces about 400 t of sandalwood annually. iwst.icfre.gov.in
Price Trends and Market Opportunity
Price Trends and Market Opportunity
Because of the widening supply deficit, the value of White Sandalwood has surged:
Average heartwood prices in Indian auctions range from ₹8,000 to ₹15,000 per kg, depending on grade and oil content.
Sandalwood oil, one of the most expensive essential oils globally, trades at USD 2,000 to 3,000 per kg in international markets.
Analysts forecast that the global sandalwood oil segment will experience steady double-digit growth through 2030, as major perfumery and wellness brands shift toward sustainably sourced materials.
This consistent demand–supply imbalance creates a powerful opportunity for long-term investors and farmers. Plantation-based production not only ensures supply stability but also generates carbon credits, soil restoration benefits, and sustainable rural livelihoods.
Yearly White Sandalwood Price in India in Last 25 Years
Yearly White Sandalwood Price in India in Last 25 Years
Interestingly: 1 kg of heartwood can yield 40–60 ml of pure sandalwood oil — one of the most expensive essential oils in the world (₹1.2–1.5 lakh/litre in 2025 market).
Interestingly: 1 kg of heartwood can yield 40–60 ml of pure sandalwood oil — one of the most expensive essential oils in the world (₹1.2–1.5 lakh/litre in 2025 market).
Government Regulation around Sandalwood in India
Government Regulation around Sandalwood in India
In India, sandalwood is no longer an exclusive state-owned forest resource. Reforms since 2014 have decentralized ownership, encouraging private farmers, cooperatives, and agroforestry entrepreneurs to cultivate Santalum album under regulated conditions.
Each state defines its own framework for:
Registration & tagging of plantations
Harvest permissions and transit passes
Sale channels — government depot, auction, or registered trader
Traceability from plantation to market
Farmers and investors must comply with local Forest Acts and Trade Rules, as enforcement remains strict in most producing states. The evolving policies signify a shift from forest protection to regulated economic utilization of sandalwood as a high-value agroforestry crop.
White Sandalwood Growth and Heartwood Formation (Years 1 – 15)
White Sandalwood Growth and Heartwood Formation (Years 1 – 15)
White Sandalwood (Santalum album) is among the few tree species that produce valuable aromatic heartwood within their lifetime. The formation of heartwood—the dense, fragrant core that gives sandalwood its economic and medicinal worth—progresses gradually through distinct biological stages.
This chart illustrates the heartwood accumulation in a single tree over a 15-year period, based on plantation observations and research inputs from IWST, ATREE, and field agro-forestry studies across southern and central India.
Growth Stages
Seedling (Year 1–2):
The tree establishes its root system and begins parasitic associations with host plants. Heartwood is negligible at this stage.Early Wood Formation (Year 3–5):
Cambium activity begins to differentiate the central core; traces of essential oil appear. Average heartwood weight reaches about 1–2 kg by Year 4.Heartwood Development (Year 6–9):
Rapid expansion of the core zone occurs, with heartwood weight increasing exponentially to 5–10 kg. The oil concentration and aromatic quality improve significantly during this phase.Growing Mature Tree (Year 10–13):
The tree enters its commercially productive stage. Heartwood content reaches 12–14 kg, and the essential oil concentration stabilizes.Near Maturity & Ready for Sale (Year 14–15):
By the 15th year, a well-managed sandalwood tree can yield 15–16 kg of saleable heartwood, depending on soil quality, host diversity, and local climate. The tree is now ready for sustainable harvesting.
✅ Source References:
- Institute of Wood Science & Technology (IWST) – “Growth Pattern and Heartwood Development in Santalum album”
- ATREE (Ashoka Trust for Research in Ecology and the Environment) Field Study Reports, 2018–2022
- Down To Earth: “Return of the Scented Wood,” 2015
Suitable Climate and Regions for White Sandalwood Cultivation in India
Suitable Climate and Regions for White Sandalwood Cultivation in India
White Sandalwood (Santalum album) thrives best under tropical and subtropical climates with moderate rainfall and well-drained soils. India’s diverse geography provides ideal growing conditions across several southern, central, and eastern states where temperature, soil composition, and humidity align with the natural requirements of this species.
Climatic Requirements
Climatic Requirements
Temperature: 12°C – 35°C
Sandalwood prefers warm climates but can tolerate brief dry spells. Excessive frost or prolonged drought can damage seedlings and slow heartwood formation.Rainfall: 600 mm – 1,600 mm annually
Areas with moderate and evenly distributed rainfall are ideal. High rainfall without good drainage can lead to root rot.Altitude: 300 – 1,200 meters above sea level
Growth is optimal in slightly elevated terrains that allow natural drainage and aeration.Soil: Red loamy or well-drained lateritic soil with a pH of 6.5–7.5
Sandalwood prefers semi-arid, rocky soils with low fertility — conditions that encourage deeper rooting and heartwood formation.Sunlight: Requires open sunlight and minimal canopy shade.
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