Sandalwood is one of perfumery’s most essential raw materials. Valued for its creamy, woody profile and its role as a fixative, it anchors countless fragrance formulas across the fine fragrance, personal care, and home categories. Yet this ingredient also represents one of the industry’s most pressing sustainability challenges.

The Supply Challenge

Natural sandalwood (Santalum album in particular) has faced decades of overexploitation. Illegal harvesting and poor forestry management across India and parts of Southeast Asia pushed the species toward endangerment, making sourcing both risky and ethically complex. Regulatory restrictions, higher costs, and supply volatility have further underscored the need for more sustainable solutions.

Responsible Sourcing Models Emerging

Forward-thinking fragrance houses and suppliers are addressing the issue with long-term strategies:

  • Commercial Plantations: Australia has become a leader in cultivatingSantalum spicatumand Santalum album through regulated plantations. These operations emphasize traceability, long growth cycles, and partnerships with local communities, delivering consistent, ethical supply.
  • Agroforestry Programs: Integrating sandalwood into mixed farming systems not only diversifies income for growers but also strengthens biodiversity and soil health.
  • Direct-to-Source Partnerships: By working directly with growers and cooperatives, fragrance companies gain transparency while ensuring fair trade practices and community benefit-sharing.

Biotechnology as a Strategic Complement

Green chemistry and biotech are transforming sandalwood sourcing. Lab-derived sandalwood molecules, created via fermentation or synthesis, replicate key olfactory facets without relying on natural forests. For perfumers, these materials provide consistency and flexibility, while for procurement teams, they reduce supply risk and improve scalability. Importantly, they can be used in tandem with responsibly sourced naturals, rather than as a replacement, creating a diversified and resilient ingredient portfolio.

Implications for the Fragrance Industry

For fragrance brands and manufacturers, sustainable sandalwood sourcing is not just an environmental imperative but a business one. Supply security, regulatory compliance, and consumer demand for transparent, ethical sourcing all converge on this issue. Companies that invest in sustainable sandalwood now are positioning themselves not only as responsible stewards but as market leaders capable of ensuring continuity in their fragrance offerings.

The Path Ahead

The transition to sustainable sandalwood will require a mix of investment, innovation, and collaboration across the value chain. By supporting plantation initiatives, adopting biotech solutions, and committing to transparent sourcing practices, the fragrance industry can secure the future of sandalwood while reinforcing trust with both consumers and regulators.

Sustainability in sandalwood sourcing is more than a technical challenge—it is an opportunity for the fragrance sector to demonstrate leadership, align with global sustainability goals, and safeguard one of its most iconic raw materials for decades to come.