The Value of Sandalwood in the Perfume and Fragrance Industry

Sandalwood is a highly sought after ingredient in the perfume and fragrance industry, known for its unique and captivating scent. It has been used for centuries to create luxurious and exquisite fragrances, and its value continues to rise due to its scarcity and increasing demand. In this article, we will explore the current price of sandalwood and delve into the reasons behind its importance in the fragrance industry.

The current market price of sandalwood

The price of sandalwood can vary significantly depending on various factors such as quality, origin and market conditions. According to recent market reports, the current price of sandalwood ranges from approximately $5,000 to $8,000 per kilogram. This high price reflects the limited supply and the extensive time and effort required to grow and harvest sandalwood trees.

One of the main reasons for the high price of sandalwood is its slow growth rate. Sandalwood trees take several decades to reach full maturity, typically 30 to 40 years. The age of the tree at the time of harvest significantly affects the quality and flavor of the oil extracted, making older trees more desirable and valuable in the marketplace.

Factors affecting the price of sandalwood

Several factors influence the price of sandalwood, making it a highly dynamic and volatile commodity in the perfume and fragrance industry. Here are some key factors that contribute to the fluctuating prices:

1. Supply and demand: The supply of sandalwood is limited due to the slow growth rate of the trees and the increasing demand from various industries including perfumery, cosmetics and traditional medicine. As the demand continues to increase, the price of sandalwood is expected to rise.

2. Legal regulations: The trade and harvesting of sandalwood is subject to strict legal regulations in many countries. These regulations are designed to protect the species from overexploitation and to ensure sustainable practices. Compliance with these regulations can have a significant impact on the availability and price of sandalwood.

The Importance of Sandalwood in Perfume and Fragrance Making

Sandalwood has long been prized in the perfume and fragrance industry for its rich, warm, woody aroma. Its distinctive fragrance adds depth, complexity and longevity to perfumes, making it a prized ingredient among perfumers and fragrance enthusiasts.
Sandalwood’s versatility allows it to be used both as a base note and as a fixative in fragrances. As a base note, it provides a solid foundation and lingering scent that enhances the overall composition. When used as a fixative, sandalwood helps to slow the evaporation of more volatile fragrance components, ensuring that the scent lasts longer on the skin.

Sustainability and Ethical Considerations

Due to the increasing demand for sandalwood and the limited supply, sustainability and ethical considerations have become critical in the fragrance industry. Sustainable sourcing practices, such as replanting sandalwood trees and supporting local communities involved in sandalwood cultivation, are essential to ensure the longevity and availability of this precious resource.

In addition, efforts are being made to combat the illegal harvesting and trade of sandalwood, which can contribute to deforestation and depletion of natural resources. Bringing transparency and traceability to the industry can help maintain the integrity of the sandalwood supply chain and support ethical practices.
In summary, sandalwood has significant value in the perfume and fragrance industry due to its captivating fragrance and versatility. However, its high price reflects the limited supply and challenges associated with its cultivation and harvesting. As the industry continues to prioritize sustainability and ethical practices, the future of sandalwood remains promising, ensuring its availability for the creation of exquisite fragrances for generations to come.


What is the current price of sandalwood?

The current price of sandalwood can vary depending on various factors such as quality, origin, market demand, and supply. As of my knowledge cutoff in September 2021, the price of sandalwood ranged from $100 to $200 per kilogram in the global market. However, please note that these prices are subject to change due to market fluctuations and other economic factors.

What factors influence the price of sandalwood?

Several factors can influence the price of sandalwood. Some of the key factors include:

– Quality: Higher quality sandalwood typically commands a higher price.

– Origin: Sandalwood from certain regions or countries may be more sought after, affecting its price.

– Market demand: If there is a high demand for sandalwood products, it can drive up the price.

– Supply: The availability of sandalwood in the market can impact its price. Limited supply can lead to higher prices.

– Regulations: Government regulations and restrictions on sandalwood harvesting and trade can also affect its price.

Are there any price variations for different types of sandalwood?

Yes, there can be price variations for different types of sandalwood. The two most common types are Indian sandalwood (Santalum album) and Australian sandalwood (Santalum spicatum). Indian sandalwood is generally considered to be of higher quality and is often more expensive compared to Australian sandalwood. However, prices can vary depending on the region, grade, and other factors.

Where can I find the current market price of sandalwood?

To obtain the most accurate and up-to-date information about the current market price of sandalwood, it is recommended to consult various reliable sources such as specialized commodity market reports, industry publications, or reach out to local sandalwood traders and dealers who have access to real-time pricing information.

What are some common uses of sandalwood?

Sandalwood has been used for various purposes throughout history. Some common uses of sandalwood include:

– Fragrance and perfumery: Sandalwood is known for its pleasant and distinctive aroma, making it a popular ingredient in perfumes, incense, and other scented products.

– Traditional medicine: Sandalwood is used in traditional Ayurvedic and Chinese medicine for its potential therapeutic properties. It is believed to have calming, anti-inflammatory, and antiseptic effects.

– Woodcraft and carving: The wood of the sandalwood tree is highly valued for its fine grain and durability. It is often used in woodworking, carving, and making furniture, sculptures, and religious artifacts.

– Religious and spiritual rituals: Sandalwood has significant cultural and religious importance in various traditions. It is commonly used in religious ceremonies, meditation practices, and as a symbol of spirituality.

Is sandalwood a sustainable resource?

Sandalwood is considered a valuable and sought-after resource, and its sustainability can be a concern. Overharvesting and illegal logging have led to the depletion of sandalwood reserves in some regions. However, efforts are being made to promote sustainable cultivation and management practices. Sustainable sandalwood plantations are being established to ensure a steady supply of sandalwood while protecting natural habitats. Additionally, international regulations and certifications aim to promote responsible trade and prevent the illegal exploitation of sandalwood resources.