The Evolution of Functional Fragrance Actives

For formulators, fragrance has long played a role in enhancing product appeal and masking unwanted odours, but a new frontier has emerged – functional fragrance actives. These go beyond aesthetics, harnessing scent’s ability to influence mood and physiological responses. In this article, Kristal Goodman, our Head of Product Innovation, explores how by engaging the olfactory system in targeted ways, product development can harness scent to transform everyday experiences into opportunities for wellbeing.

The use of scent for wellbeing purposes is not new. Ancient civilisations such as the Egyptians and Romans employed aromatic herbs and flowers to promote relaxation and spiritual harmony. Over time, this practice has evolved into a scientific discipline known as aromachology, which studies the relationship between scents and psychology. As the beauty and wellness industries converge, functional fragrances are now designed with efficacy in mind, supported by research demonstrating their impact on stress reduction, clarity, and relaxation.

The Science Behind Scent and Mood

Olfactory perception plays a crucial role in how we experience scent. When we inhale fragrance molecules, they interact with receptors in the olfactory epithelium, triggering signals to the brain’s limbic system – the centre for emotions, memory, and arousal. This connection explains why specific scents can influence our physiological state, from calming anxiety to boosting energy levels. Advances in neuroscience and biotechnology have allowed perfumers to refine their palettes, expanding beyond traditional ingredients like lavender to identify new scent molecules with functional benefits—such as calming, uplifting, or invigorating properties—that may never have been explored before.

Using specific molecules found in nature can also trigger responses. Phytoncides, for example, which are released by trees to protect against pathogens, have been shown to have a positive effect on our immune systems and stress levels. Their relaxing benefits can be measured using various techniques, including EEG and fMRI analysis, to track neurological and emotional responses, elevating Forest Bathing inspired fragrances so they have power on a functional level.

Tapping into nostalgic memories with specific scent profiles, reminiscent of happy childhood times and even the rise of feel-good gourmand fragrances, can also evoke strong and measurable feelings of connection and comfort.

Key Functional Fragrance Actives and Their Benefits

Research has identified several scent compounds with distinct mood-enhancing effects:

-      Lavender: One of the most studied functional fragrances, lavender is widely recognised for its calming scent and is commonly used in products designed to create a relaxing environment.

-      Citrus (Lemon, Orange): These bright, zesty scents are often associated with energy and positivity, making them popular choices in formulations designed to create an uplifting and refreshing experience.

-      Peppermint: Known for its refreshing and cooling aroma, peppermint is commonly used to create an energising sensory experience that is often associated with enhanced alertness and focus.

-      Jasmine: With its bright, floral fragrance, jasmine is often linked to feelings of positivity and well-being, making it a popular choice in products designed to uplift the senses.

-      Rosemary: Rosemary’s fresh, herbal scent is commonly associated with mental clarity and focus, making it a popular choice in fragrances designed to create an invigorating environment.

-      Bergamot: Bergamot’s bright, citrusy aroma is often linked to a sense of balance and well-being, contributing to its popularity in calming and mood-enhancing fragrance formulations.

-      Ylang-Ylang: Known for its rich, floral scent, ylang-ylang is often used in products designed to create a tranquil and relaxing atmosphere.

These scents interact with olfactory nerves, stimulating the limbic system and prompting neurotransmitter release. Floral scents, for example, can encourage relaxation, while energising scents may activate pathways associated with wakefulness and focus.

The Future of Functional Fragrances

Ongoing research continues to unlock new possibilities for functional fragrance applications, from healthcare settings to workplace productivity solutions. Hospitals are incorporating scents into environments to create a calming atmosphere. while businesses are leveraging strategic fragrance choices to enhance focus and creativity in office environments.

Biotechnology is revolutionising the development of functional fragrance actives by expanding the perfumer’s palette beyond traditional ingredients like lavender and jasmine. Advances in synthetic biology and fermentation techniques are allowing the creation of novel scent molecules that were previously difficult or impossible to extract sustainably. This not only enhances the olfactory complexity of fragrances but also reveals new ingredients with potential functional benefits that may never have been explored before. By leveraging biotech innovations, perfume manufacturers can craft fragrances with greater precision, ensuring consistency, sustainability, and efficacy in promoting well-being

Applications in Product Development

With growing scientific backing, perfume manufacturers are integrating functional fragrance actives into a variety of products to enhance daily routines:

• Personal Care: Deodorants, shower gels, and skincare products infused with mood-enhancing fragrances turn hygiene into a wellness ritual.
•  Home Fragrances: Diffusers, pillow mists and candles create environments tailored to relaxation or stimulation, shaping the atmosphere of the spaces where we live, work and sleep.
• Wearable Scents: Fragrance manufacturers are exploring innovations such as scented jewellery and microencapsulated fabrics so users experience therapeutic scents throughout the day.

Technological Innovations in Scent Delivery Systems

Innovative technologies are transforming how functional fragrances are delivered and experienced:

• Microencapsulation: Tiny fragrance capsules release scent gradually, enhancing longevity in textiles and personal care products.
• Digital Scent Technology: Olfactory displays and scent synthesisers integrate fragrance into virtual reality and smart home environments.
• Nanotechnology: Precision-engineered fragrance systems respond to environmental or biochemical cues, optimising scent release for maximum effect.
• Bluetooth-Enabled Diffusers: Customisable scent schedules allow users to control fragrance intensity and timing via smartphone apps.

Functional Fragrances and Sleep Enhancement

Sleep is a prime example of how functional fragrance actives are being leveraged to deliver measurable well-being benefits. Unlike fleeting mood enhancements, scent can directly influence sleep quality. Studies show that fragrances such as lavender and sandalwood help reduce sleep onset time and promote deeper relaxation, reinforcing the link between scent and restfulness.

The ritualistic nature of bedtime also strengthens the association between scent and relaxation, making functional fragrances an effective, non-invasive tool for promoting rest. The beauty and wellbeing industry is adopting innovative scent delivery solutions such as smart diffusers, microencapsulated fabrics, and time release bedroom diffusers to integrate functional fragrances into sleep environments. These advancements ensure consistency and efficacy, making it easier for individuals to incorporate sleep-enhancing scents into their nightly routines.

Several key scents are commonly associated with sensory sleep support:

-      Lavender: Commonly associated with relaxation, lavender is widely used in sleep-focused products to create a soothing atmosphere conducive to rest.

-      Chamomile: Recognised for its comforting scent, chamomile is often included in sleep-enhancing formulations to support a relaxing bedtime routine.

-      Sandalwood: Its warm, woody fragrance is frequently used in wellness products to help create a grounding and calming sleep environment.

With growing research supporting the efficacy of these scents, the sleep category illustrates the broader potential of functional fragrances in enhancing well-being through scientifically backed mechanisms.

The Role of Ritual in Functional Fragrance Efficacy

Beyond their biochemical effects, functional fragrances are most effective when incorporated into consistent rituals. Sensory association strengthens their impact over time, making them valuable tools in unwinding routines, self-care practices, and mindfulness exercises, for example:

Bath Rituals: Adding essential oils to a warm bath enhances relaxation.

Pre-Sleep Activities: Applying sleep-promoting scents while reading or meditating reinforces their effectiveness.

Journaling & Reflection: Using scent as a cue to transition from the day’s stresses to a restful state.

Regulatory and Ethical Considerations

As the industry evolves, regulatory compliance and ethical responsibility are paramount. Brands must substantiate wellness claims with scientific evidence, ensuring safety and transparency in ingredient disclosure. Regulations in markets such as the EU and US mandate clear labelling, particularly for allergens. Ethical considerations also extend to marketing—brands must avoid overstating benefits and ensure that fragrance exposure in shared spaces respects individual autonomy.

Sustainability is another crucial factor. The extraction of natural fragrance ingredients can have significant environmental implications, making ethical sourcing and eco-friendly practices essential. The industry is increasingly adopting biodegradable microcapsules, sustainable farming, and water-saving production techniques to mitigate environmental impact.

Looking Ahead: The Expanding Role of Functional Fragrances

With research deepening and technological advances, functional fragrance actives are set to play an increasingly significant role in health and well-being. AI-driven scent personalisation, eco-friendly innovations, and expanding applications in wellbeing and productivity will shape the next era of fragrance development. By combining scientific rigour with sensory artistry, functional fragrances are poised to revolutionise how we experience scent—turning everyday aromas into powerful tools for enhancing mood, performance, and overall well-being.

Kristal Goodman
Head of Product Innovation, THG LABS

With over 25 years’ experience in the beauty industry and UK cosmetics manufacturing, Kristal Goodman  has cultivated a unique blend of scientific expertise, creative vision, and strategic thinking to spearhead what are recognised as some of the beauty industry’s most much-loved, must-have products. 

In her role as the Head of Product Innovation, Kristal’s influence is best demonstrated in THG LABS dedication to pushing boundaries. She is the driving force behind the integration of upcycled ingredients, advanced biotechnology , and other impactful emergent global beauty trends that ensure THG LABS remains at the cutting-edge of beauty innovation. Her knowledge of actives and their benefits is encyclopaedic which fuels her talent for translating ingredient ideas and science into concepts that give each product a formula and a story consumers fall in love with. 

A member of THG LABS Eco Leadership Team and a devoted advocate for formulating sustainably, Kristal adopts a holistic approach to product development, believing that truly innovative beauty products are those that address the multifaceted needs of today’s consumers while better respecting the world around us.