Why this ancient, parasitic tree became one of the world's most expensive commodities

Countries & Cities · Published 29 September 2026 Swipe more like this →

In short: Sandalwood is more than a scent; it is a hemiparasitic tree that has shaped global trade routes for centuries. Prized for its ability to retain fragrance for decades, this slow-growing wood is now so valuable that its oil can cost thousands of dollars per liter, fueling both luxury and illicit markets.

Sandalwood refers to trees in the genus Santalum, a group of about 25 species of hemiparasitic plants that draw nutrients from the roots of other trees. Unlike many aromatic woods, true sandalwood—specifically Santalum album—retains its distinctive, creamy fragrance for decades. This longevity, combined with its cultural significance in Hinduism, Buddhism, and Jainism, has made it a highly sought-after resource since antiquity.

The history of the wood is deeply tied to human migration and trade. Austronesian sailors introduced S. album to South and East Asia, where it became naturalized by at least 1300 BCE. For centuries, it was a cornerstone of the incense trade, moving along maritime routes that connected India and the Malay Archipelago to markets in West and East Asia. Today, the industry has shifted; while India remains a producer of high-quality wood, Australia has emerged as the world's largest resource, with plantations in Western Australia dominating the global supply.

The extreme value of the wood—often cited as one of the most expensive in the world—has led to significant ecological pressure. Because the highest concentration of fragrant oil is found in the heartwood, which takes about 30 years to reach maturity, over-harvesting has pushed several species toward extinction. In places like Tonga, the collapse of traditional social systems led to the rapid depletion of local sandalwood populations. Today, the market is a complex mix of ethical plantations, synthetic alternatives like isobornyl cyclohexanol, and a persistent trade in unrelated plants mislabeled as sandalwood.

Beyond its use in fine perfumery and religious rituals, the wood serves surprising roles in modern science and industry. Its low fluorescence and specific refractive index make it useful in microscopy, while its oil is a common ingredient in everything from cosmetics to chewing tobacco. As demand continues to outpace the slow growth of these trees, the future of the industry rests on balancing the high-stakes economics of the fragrance trade with the need for sustainable cultivation.

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