You've probably noticed it too—Palo Santo is everywhere now. Once used mostly in traditional rituals and indigenous medicine, it's now showing up in yoga studios, luxury skincare lines, aromatherapy brands, and mainstream retail.

It's gone from sacred wood to global wellness product—and demand is only growing.

But behind that rise lies a more complex story. Where does all this Palo Santo come from? Who's producing it? And how is it being harvested, processed, and traded to meet international demand?

Whether you're sourcing for retail, private label, or distribution, understanding how the global Palo Santo industry works can help you make smarter decisions—about suppliers, product formats, and even positioning.

In this article, you'll get a clear look at the Palo Santo supply chain: from forest to export, from wild wood to cultivated farms. You'll learn who the major players are, how the market is evolving, and what to watch for as sustainability and consumer awareness reshape the industry.

1. What is Palo Santo and Why Its Origin Matters

Palo Santo, or Bursera graveolens, is a tree native to the dry tropical forests of South America—primarily in Ecuador and Peru, with smaller populations in Colombia and Bolivia. The name translates to "holy wood" in Spanish, a reflection of its deep roots in spiritual and healing traditions across the Andes and Amazon basin.

For generations, local communities have used it in ceremonies to cleanse energy, repel insects, relieve stress, and treat physical ailments. Its wood releases a distinctive aroma when burned—warm, citrusy, and slightly resinous—which comes from its high content of natural essential oils, especially limonene.

But not all Palo Santo is created equal.

Its quality and aromatic profile depend heavily on how and where it's sourced. Naturally fallen trees that have aged in the forest for years develop a much higher oil content and deeper scent complexity. These conditions exist only in specific microclimates—especially in coastal Ecuador and northern Peru—where the tree grows wild and matures over decades.

On the other hand, Palo Santo harvested too early, or grown in plantation settings under artificial drying conditions, tends to be lighter in resin, with a less intense aroma. That's why origin matters—not just for cultural authenticity, but for product quality, consistency, and market value.

For wholesale buyers, understanding these distinctions is essential. Whether you're selling raw sticks, cones, oil, or finished goods like candles or incense, the story behind the wood—its place of origin, harvesting method, and natural maturation—can be a powerful differentiator in a competitive global market.

2. The Ethical Production Process — From Forest to Finished Product

Ethical Palo Santo production starts with one crucial principle: the wood must come from trees that have fallen naturally.

Unlike timber industries that rely on active logging, the responsible Palo Santo supply chain begins with collecting deadwood from the forest floor—typically branches or trunks that have fallen due to age or natural causes. This method is not only more sustainable, but it's also necessary for producing high-quality wood.

Once collected, the wood undergoes a long natural drying and aging process. This can take anywhere from 3 to 10 years, depending on climate conditions and the size of the wood. During this time, the essential oils inside the wood begin to mature and concentrate. It's this slow, patient process that creates the deep, complex aroma Palo Santo is known for. Think of it like aging wine or cheese—rushing it compromises the result.

After proper aging, the wood is processed into various formats:

• Sticks and chips for burning
• Essential oil via steam distillation
• Powder for infusions or blends
• Cones and incense using pressed wood
• Finished products like candles, soaps, sprays, and more

Each step must follow local regulations and quality standards, particularly for export. In countries like Ecuador, producers must obtain a phytosanitary certificate to ship Palo Santo abroad. This ensures that the product is legally sourced, disease-free, and safe for international markets.

For buyers, ethical production means more than sustainability—it's about consistency, compliance, and the long-term viability of the supply chain. Suppliers who cut corners—by harvesting live trees, skipping the aging period, or operating without documentation—can introduce major risks for your business, including legal complications and damage to your brand's reputation.

That's why sourcing from producers who follow a documented, ethical process isn't just a nice-to-have—it's a strategic decision.

3. Global Growth — How the Palo Santo Market is Evolving

Twenty years ago, Palo Santo was mostly unknown outside South America. Today, it's a staple in the global wellness movement. From boutique wellness shops in Los Angeles to high-end perfumeries in Paris, Palo Santo is no longer a niche product—it's part of a growing international trend that blends ancient tradition with modern lifestyle.

So, what's driving the surge?

A combination of factors.

• Spiritual and holistic practices like meditation, energy cleansing, reiki, and yoga have gone mainstream, and Palo Santo is often part of those rituals.
• Aromatherapy and natural fragrance markets are booming, with consumers favouring earthy, plant-based scents over synthetics.
• The clean beauty and natural cosmetics industry has adopted Palo Santo essential oil for its unique scent and supposed soothing properties.
• Even the cannabis wellness sector is exploring blends of Palo Santo with CBD products, looking to enhance relaxation and sensory experience.

The result? A market that's rapidly expanding across North America, Europe, and increasingly Asia. In fact, Ecuador and Peru—the two largest exporters—now ship more than 500 metric tons of Palo Santo products annually. And according to trade estimates, the industry is growing at a rate of around 15% per year.

Import demand is especially high in:

• The United States, which accounts for over 50% of global consumption
• Spain, where it's used in metaphysical shops and perfumery
• France and Germany, key players in the natural cosmetics space
• Japan and South Korea, where holistic wellness is gaining cultural traction

Palo Santo has proven itself to be incredibly versatile—sold as raw sticks, incense cones, essential oils, powders, sprays, and infused into a growing list of consumer products like soaps, candles, and even perfumes. This adaptability makes it attractive not only for spiritual and wellness sectors, but also for B2B buyers seeking innovative ingredients for premium product lines.

The big takeaway? Palo Santo is no longer just a sacred wood—it's a serious business. And buyers who understand market dynamics early are better positioned to scale with it.

4. Key Producers and Export Leaders — Spotlight on Ecuador and Peru

While Palo Santo trees grow across several Latin American countries, two nations have emerged as the primary exporters on the global stage: Ecuador and Peru. Together, they account for the vast majority of international shipments—and each has taken a slightly different approach to production and regulation.

Ecuador: Leading with Regulation and Sustainability

Ecuador is positioning itself as a pioneer in sustainable Palo Santo production. The country's most active harvesting and processing regions include Manabí, Santa Elena, Guayas, and Loja, where naturally fallen trees are collected in accordance with environmental regulations.

One of the key differentiators for Ecuador is its phytosanitary certification system, issued by Agrocalidad, the national plant health authority. This certificate is required for export and ensures that Palo Santo wood is collected legally, free of pests and diseases, and sourced from naturally fallen trees—not from illegal logging.

This framework gives international buyers confidence in the legality and traceability of the product. Ecuadorian Palo Santo is also known for its high limonene content, the aromatic compound responsible for its bright citrus-forward scent profile. That makes it especially popular for essential oils, high-end incense, and perfumery.

Ecuador exports more than 300 metric tons per year of Palo Santo wood and oil, and is rapidly becoming the preferred origin for buyers seeking consistency, documentation, and premium aroma quality.

Peru: A Mix of Artisanal and Commercial Production

Peru is the other major player, with key harvesting areas in Piura, Tumbes, and Lambayeque. Like Ecuador, Peruvian regulations technically require Palo Santo to be collected from naturally fallen trees—but enforcement can vary by region.

Production in Peru is often more fragmented, involving a mix of artisanal harvesters, small-scale cooperatives, and commercial exporters. This creates a broader variety of products and pricing options, but can also present challenges around traceability and consistency.

That said, Peruvian Palo Santo is highly valued for its sweeter, woodier aroma, which many customers prefer for traditional incense and ritual uses. The country exports around 200 metric tons per year, and remains an important source for brands focused on traditional or handcrafted product lines.

Other countries like Bolivia, Colombia, and Argentina also have small-scale production—mostly for domestic use. Meanwhile, countries like Brazil and Mexico participate indirectly through export logistics or niche cultivation, but on a much smaller scale.

For wholesale buyers, choosing a country of origin isn't just about price—it's about understanding the production model, aroma profile, and compliance systems behind the wood. That context can help you build stronger sourcing relationships, craft more authentic brand stories, and avoid the reputational risks that come with unclear supply chains.

5. Wild vs. Cultivated Palo Santo — What Buyers Should Know

One of the biggest decisions wholesale buyers face is choosing between wild-harvested and cultivated Palo Santo. On paper, both may seem similar. But in practice, they differ significantly in quality, aroma, sustainability—and the kind of story you can tell your customers.

Wild-Harvested Palo Santo

Wild Palo Santo comes from trees that have died naturally in the forest and have been left to decompose and cure for several years—often between 3 to 10 years. This long natural aging process allows the wood to develop a high concentration of essential oils, particularly limonene, which gives Palo Santo its distinctive citrus-wood scent.

These pieces are typically denser, richer in resin, and carry a deeper, more complex aroma. Wild-harvested wood is generally considered superior in quality and is preferred for premium incense, oil distillation, and spiritual or ceremonial use.

However, wild harvesting is only sustainable when done correctly. It requires strict collection controls, respect for local ecosystems, and adherence to national regulations. Done irresponsibly, it can lead to deforestation or ecosystem imbalance—which is why certifications and documented sourcing are especially important with wild wood.

Cultivated Palo Santo

In response to rising demand, some producers have turned to cultivation—planting and harvesting Palo Santo trees in controlled environments. On the surface, this approach sounds like a sustainable alternative, but it comes with trade-offs.

Cultivated trees are often harvested before reaching full maturity, and the wood is typically dried using artificial methods to speed up processing. As a result, the wood tends to be lighter in colour, lower in resin, and produces a milder, less complex aroma. While it can work for entry-level incense products or blends, it usually doesn't deliver the depth or scent longevity that high-end buyers expect.

In some regions, cultivation has also been linked to illegal practices—like clearing native forest land to plant Palo Santo, which defeats the purpose of sustainability altogether.

So, Which Should You Choose?

It depends on your product positioning and customer expectations.

If you're focused on premium quality, strong scent, and authentic tradition, wild-harvested Palo Santo is the way to go—but make sure it comes from a documented, legal source.

If your brand leans toward mass-market offerings, or you prioritise speed and price over aroma complexity, cultivated wood might suit your needs—but transparency still matters.

In either case, being able to explain the difference to your customers adds value. Buyers are increasingly informed and want to know the story behind what they're burning, wearing, or diffusing.

6. Certifications and Compliance — What the Modern Market Demands

In today's wellness market, sustainability claims aren't just marketing buzz—they're part of what drives consumer trust. And that means wholesale buyers need to go beyond "natural" or "ethical" labels and look for certified, verifiable compliance throughout the supply chain.

Phytosanitary Certificates

If you're importing Palo Santo, this is non-negotiable.
In Ecuador, all legal exports of Palo Santo require a phytosanitary certificate issued by Agrocalidad, the national plant health agency. This certificate ensures the wood is:

• Free of pests and diseases
• Collected from naturally fallen trees, not live-cut
• Traceable through the legal supply chain
• Approved for international shipment under plant health standards

For importers, this documentation not only ensures compliance with your country's customs regulations—it also protects your brand from association with illegal or unsustainable harvesting.

Other Certifications to Know

Depending on your market and customer base, additional certifications may strengthen your product offering:

• CITES (Convention on International Trade in Endangered Species): While Bursera graveolens is not currently listed under CITES, changes in international environmental policy could change that. Being ahead of potential future regulations can help your business remain agile and credible.
• USDA Organic: While uncommon for wild Palo Santo, cultivated products may carry this label if grown and processed without chemicals. Useful for brands targeting the natural cosmetics or organic wellness space.
• Fair Trade: Though not widespread in Palo Santo yet, some projects are beginning to explore this model. It ensures fair wages and working conditions for local harvesters and artisans.
• Carbon-neutral or regenerative certifications: As climate consciousness grows, buyers may start to look for Palo Santo products aligned with broader environmental goals like reforestation or carbon offsetting.

Why This Matters to You

Compliance isn't just about following rules—it's about building a brand that can scale sustainably and stand up to scrutiny. As the Palo Santo market matures, regulators are watching, and so are consumers.

Having documented, legal, and ethical sourcing helps protect your business against customs issues, reputational damage, and shifting environmental policies. More importantly, it gives your brand a clear edge—because the story behind your product matters as much as the scent itself.