Sandalwood has been one of the most valued natural resources for centuries, known for its distinctive fragrance, medicinal properties, and cultural significance. In 2025, the global demand for sandalwood and its essential oil continues to grow, driven by perfumery, aromatherapy, cosmetics, and religious practices. Here is a detailed look at the top 15 sandalwood-producing countries in the world in 2025 and what makes them significant players.
1. India
India is the traditional leader in sandalwood production, especially for Santalum album (Indian sandalwood), known for its high oil content and superior fragrance quality. Major production regions include Karnataka, Tamil Nadu, and Kerala. Mysore sandalwood remains a premium choice globally. In recent years, the government has encouraged private cultivation to reduce pressure on wild forests and meet rising demand.
2. Australia
Australia is now a global hub for commercial sandalwood plantations. Companies in Western Australia produce large quantities of sustainably grown sandalwood and export both wood and oil worldwide. Its plantation model is seen as a benchmark for ethical and traceable sandalwood production.
3. Indonesia
Indonesia, especially East Nusa Tenggara, has long been a key supplier of sandalwood. The country is working on sustainable harvesting practices after decades of overexploitation. Indonesian sandalwood is in high demand for incense, rituals, and export.
4. Sri Lanka
Sri Lanka is known for its cultural use of sandalwood in religious ceremonies and Ayurvedic medicine. While production volumes are smaller compared to India and Australia, its sandalwood oil is valued for its purity.
5. China
China has been increasing its sandalwood plantation efforts to reduce reliance on imports. Rising demand in the luxury perfume and incense markets has encouraged domestic cultivation, making China an important emerging producer.
6. Nepal
Nepal’s sandalwood cultivation is concentrated in the southern Terai region. Production remains small but steadily growing, with sandalwood oil used in cosmetics and exported to neighboring countries.
7. Bangladesh
Bangladesh has begun cultivating sandalwood commercially, focusing on meeting domestic demand for perfumery, soaps, and incense, while exploring small-scale exports.
8. Fiji
Fiji produces a unique variety of sandalwood that is highly sought after in the Pacific and international markets. Its production is export-oriented and contributes to the country’s rural economy.
9. Vanuatu
Vanuatu is another Pacific island nation with increasing sandalwood plantations. The country’s sandalwood oil is considered high quality, and exports have become a significant revenue stream.
10. Kenya
Kenya has joined the sandalwood production list through plantation initiatives and agroforestry projects. This helps diversify the economy and create sustainable income for local farmers.
11. Tanzania
Similar to Kenya, Tanzania is exploring sandalwood cultivation as part of its agroforestry strategy. The country has the right climate for sandalwood growth and is positioning itself as a future exporter.
12. Ghana
Ghana has started small-scale sandalwood cultivation projects. These efforts are still in early stages but show potential for export once plantations mature.
13. Vietnam
Vietnam is developing sandalwood plantations and producing essential oils for domestic use and regional export. It has also become a center for processing and value addition.
14. Thailand
Thailand uses sandalwood in its cosmetics, rituals, and wellness products. Small-scale plantations supply the local market, and sandalwood oil production is expected to grow.
15. United States
Although the U.S. is not a major wild sandalwood producer, niche plantations exist, mainly for research and premium perfumery markets. The country remains one of the largest consumers of imported sandalwood products.
Global Trends and Insights
- Sustainability Focus: As natural sandalwood trees take 15–20 years to mature, many countries are shifting towards managed plantations to avoid overharvesting and illegal logging.
- Growing Demand: The global market for sandalwood oil is expanding, especially in luxury perfume, skincare, and wellness sectors.
- Quality Matters: Countries with high santalol content in their sandalwood oil (India, Fiji, Australia) continue to command premium prices.
- Regulatory Support: Many governments are simplifying rules for private cultivation, encouraging farmers to plant sandalwood trees and secure long-term income.
Final Word
In 2025, India and Australia remain the top two leaders in sandalwood production, while Pacific nations like Fiji and Vanuatu are gaining recognition for sustainable, high-quality output. The expansion of sandalwood cultivation in Africa and Southeast Asia highlights the crop’s economic potential and global appeal. With demand continuing to rise, the future of sandalwood production depends on balancing commercial needs with environmental sustainability.