Indian sandalwood has been a rare and therefore precious commodity for millennia.
Almost half of the available annual supply of Indian sandalwood is used for religious and ceremonial purposes. It plays an important role during many Hindu and Buddhist rituals and ceremonies (e.g. during weddings and funerals). It is further used for the building of temples, the manufacture of fine furniture and artistic carvings as well as for the production of incense.
Moreover, large quantities are required each year for the production of pan masala (traditional chewing tobacco) and oral fresheners.
The manufacturers of therapeutic products as well as the fine fragrance industry have traditionally been important consumers of Indian sandalwood also.
More recently, the pharmaceutical industry has emerged as a new commercial growth opportunity for Indian sandalwood. Within 10 years, this new market is forecasted to account for a third of the total demand for Indian sandalwood.
More information about the various markets for Indian sandalwood can be found here.