The Role of Upcycled Ingredients in Reducing Waste in the Fragrance Industry

With sustainability now a key driver in the beauty and fragrance industry, brands and consumers alike are looking for innovative ways to minimise environmental impact.

One exciting development in this space for us as cosmetic scientists is the use of upcycled ingredients in fragrance formulations. Upcycling—repurposing waste materials into valuable new products—offers private label beauty manufacturers like THG LABS, and the brands we partner, a sustainable alternative to traditional fragrance sourcing by reducing waste, conserving resources, and enhancing circular economy principles.

In this article, Kristal Goodman , our Head of Product Innovation, explores the potential of upcycled ingredients for fragrance manufacturers and its impact on formulation and the wider industry.

Understanding Upcycled Ingredients in Fragrance

Previously regarded as industrial by-products, unconventional waste streams have become rich reservoirs when it comes to perfume potential. These materials provide unique and unexpected fragrance profiles that can offer an exciting dimension to scent formulation.

Examples of upcycled botanicals that can be transformed into olfactory assets include:

• Coffee Grounds – Repurposed to provide deep, smoky, roasted aroma that add warmth and gourmand appeal.
• Citrus Peels – Extracted from the juice industry’s waste, offering bright, zesty, and uplifting top notes.
• Wine Lees – The residual yeast sediment from winemaking, contributing a rich, fermented, and slightly fruity character.
• Grape Pomace – A by-product of winemaking, offering deep, rich notes in fragrance compositions.
• Cacao Husks – A by-product of chocolate production, providing a deep, earthy sweetness with hints of spice.
• Wood Shavings – Sourced from the lumber industry to create earthy, resinous accords.
• Floral Water By-Products – The secondary output of essential oil distillation, containing subtle yet valuable floral and herbaceous notes.
• Spent Rose Petals – Often discarded after essential oil distillation, these petals still contain aromatic compounds that can be further extracted for delicate floral notes.

How Upcycled Fragrance Supports a Circular Beauty Economy

Upcycling in fragrance aligns with the circular beauty economy, a model that prioritises waste minimisation and resource efficiency. By transforming by-products into precious fragrance ingredients, beauty manufacturers and the brands they partner contribute to a closed-loop system that reduces dependency on virgin raw materials and fosters sustainability.

• Waste Reduction: Repurposing discarded materials eliminates landfill waste and decreases pollution.
• Resource Efficiency: Upcycling maximises the use of ingredients, ensuring as much of the plant or material is harnessed to avoid waste.
• Sustainable Innovation: By opting to use these ingredients we can help the beauty brands we partner to embrace the upcycling position themselves and demonstrate their desire to pursue more considerate beauty solutions.

Carbon Footprint Reduction: The Environmental Benefits of Upcycled Scents

The production of traditional fragrance ingredients often involves resource-intensive processes, including farming, harvesting, and extraction, all of which contribute to carbon emissions. Upcycled fragrances help mitigate these environmental impacts through:

• Lower Land & Water Use: Since upcycled ingredients are derived from existing materials, they do not require additional farming or irrigation.
• Reduced Transportation Emissions: Sourcing upcycled ingredients locally can decrease the need for global shipping and distribution.
• Less Energy Consumption: Many upcycled fragrance materials require simpler processing compared to traditional extraction techniques, leading to lower energy usage.
• Ethical Sourcing: How Upcycled Ingredients Enhance Sustainable Perfumery Answering consumer demand for ethical sourcing in beauty and fragrance, upcycled ingredients can provide further benefits:
• Preventing Overharvesting: By using discarded materials instead of fresh crops, upcycling reduces the strain on natural resources and biodiversity.
• Supporting Fair Trade: Some upcycled fragrance initiatives work with local communities, creating economic opportunities by repurposing agricultural waste into profitable ingredients.
• Transparency & Traceability: Brands can provide clearer sourcing information, helping consumers make informed, ethical purchasing decisions.

From Waste to Wow

Upcycled fragrance ingredients originate from by-products, however, their transformation into high-quality fragrance components requires a scientific approach. Key methodologies include:

• Molecular Distillation – This technique isolates and refines specific aromatic compounds, ensuring that upcycled materials retain the most potent and desirable olfactory properties.
• Enzymatic Hydrolysis – By breaking down plant-based materials into smaller, volatile aromatic molecules, enzymatic hydrolysis enhances fragrance longevity and depth.
• CO2 Supercritical Extraction – A clean, solvent-free method that preserves delicate aroma compounds from botanicals, offering a purer and more sustainable alternative to traditional distillation.
• Fermentation-Derived Fragrance Molecules – Some upcycled ingredients, such as spent rose petals and vanilla pods, can undergo controlled fermentation to enhance and modify their scent profiles, producing novel and complex fragrance notes.

Exploring the Chemistry of Upcycled Essential Oils

The chemical composition of upcycled essential oils is comparable to conventionally sourced materials, often with enhanced stability and complexity. Scientists and formulators analyse these oils using techniques such as:

• Gas Chromatography-Mass Spectrometry (GC-MS) – Used to identify and quantify aromatic molecules within upcycled extracts, ensuring consistency in formulation.
• Headspace Analysis – Captures volatile compounds from upcycled materials to evaluate their olfactory characteristics and refine blending techniques.
• Fractional Distillation – Helps isolate key fragrance molecules from complex botanical mixtures, ensuring only the most desirable scent components are utilised.

These analytical approaches guarantee the performance and safety of upcycled essential oils, allowing perfume manufacturers and beauty formulators to work with them as confidently as they would with traditionally extracted ingredients.

Blending Upcycled Notes: How Perfumers Innovate with Waste-Derived Ingredients

Modern perfumers are developing innovative techniques to seamlessly integrate upcycled ingredients into luxury compositions, artfully exploring:

• Accord Structuring – Balancing upcycled materials with traditional fragrance elements to create harmonious and sophisticated scents.
• AI-Assisted Formulation – Leveraging artificial intelligence to predict optimal ingredient combinations and enhance olfactory complexity.
• Microencapsulation Technology – Encapsulating upcycled notes to enhance fragrance longevity and controlled release.
• Scent Layering Techniques – Pairing upcycled ingredients with complementary notes to maximise their impact without overpowering a fragrance blend.

These advancements ensure that upcycled ingredients match the sensory expectations of high-end perfumery, demonstrating that sustainability and luxury can coexist.

The Rise of Eco-Conscious Luxury in Fragrance: Why Consumers Are Choosing Upcycled Scents

Modern consumers, particularly Gen Z and Millennials, are increasingly valuing sustainability in their personal care and fragrance choices, driving a significant shift in luxury fragrance markets. This change is influenced by several factors:

• Environmental Awareness: Recognition of the harmful impacts of deforestation, overharvesting, and chemical processing on ecosystems has led consumers to prefer products that reduce reliance on virgin resources.
• Ethical Consumption: The trend towards circular beauty promotes reusing resources, reducing industrial waste, and sourcing ingredients ethically.
• Health-Conscious Preferences: Often processed using solvent-free and minimal-impact techniques, upcycled fragrances offer a cleaner alternative to synthetic or conventionally harvested ingredients, appealing to health-conscious consumers.
• Unique and Story-Driven Scents: Upcycled materials provide exclusivity and a narrative that resonates with those seeking meaningful, artisanal fragrance experiences.

As luxury fragrance brands adapt, they are not only responding to a demand for sustainability but are redefining what luxury means in fragrance:

• Exclusivity & Artisanal Quality: The limited supply of upcycled materials adds a layer of rarity and sophistication.
• Customisation & Personalisation: Niche brands create unique, made-to-order scents using upcycled elements, catering to consumers seeking exclusivity.
• Sustainable Alignment: Echoing the sustainable practices in fashion and beauty, luxury fragrance brands are integrating eco-friendly initiatives, which include using biodegradable or refillable packaging, to enhance their market appeal.
• Eco-Conscious Luxury: Affluent consumers increasingly view sustainable sourcing and environmental responsibility as integral to modern luxury, with upcycled ingredients seen as both premium and desirable due to their specialised extraction techniques and limited availability.
• Narrative-Driven Branding: Stories about the origins of upcycled ingredients, such as wine lees from French vineyards or coffee grounds from sustainable farms, enhance their desirability and appeal to consumers looking for authenticity and traceability in their luxury purchases.

This evolving consumer landscape is encouraging luxury fragrance brands to educate their customers about the benefits of upcycled scents, proving that sustainable practices can coexist with high-end luxury without compromising on quality.

Transparency & Traceability: How Upcycled Ingredients Enhance Brand Trust

One of the biggest consumer concerns in beauty and fragrance is ingredient transparency. Brands that incorporate upcycled materials often have an advantage in this space by:

• Providing Full Ingredient Traceability: Upcycled ingredients come with a documented origin, whether from wine lees, coffee grounds, or citrus peels.
• Certifications and Third-Party Approvals: EcoCert, Cradle to Cradle, and other sustainability certifications validate the authenticity of upcycled fragrance components.
• Clear Labelling & Communication: Consumers demand honesty—fragrance houses that openly disclose sourcing and sustainability efforts build stronger loyalty.
• Aligning with Clean Beauty Movements: Upcycling fits seamlessly into the clean beauty narrative, where ethical and sustainable formulations take precedence over mass-produced synthetic alternatives.

The Role of Certification & Industry Standards in the Growth of Upcycled Fragrance

For upcycled perfumery to scale globally and gain consumer trust, it's essential that regulatory frameworks and certification systems evolve to ensure ingredient safety, authenticity, and sustainability. The fragrance industry's shift toward sustainable practices has spurred regulatory bodies to start establishing guidelines for upcycled ingredients, focusing on both environmental impact and consumer safety.

Current and Emerging Certifications Include:

• ISO 9235 Compliance: Defines what constitutes a "natural" fragrance ingredient, including upcycled materials.
• EcoCert & COSMOS Organic Certification: Verifies the ethical and sustainable sourcing of upcycled fragrance components.
• Cradle to Cradle Certification: Ensures that circular economy principles are adhered to throughout the ingredient lifecycle.
• Transparency Labelling Standards: Helps consumers verify the ethical sourcing and processing of upcycled ingredients through clear traceability frameworks.

Key Regulatory Considerations:

• Ingredient Safety & Compliance: Upcycled materials must meet safety standards set by organisations such as IFRA (International Fragrance Association) and the EU and UK REACH regulation.
• Certifications & Claims: Ensures that sustainability claims about upcycled ingredients are verifiable and comply with regulatory requirements to avoid greenwashing.
• Market Adoption: Encourages the adaptation of regulatory frameworks to accommodate innovation in upcycled fragrance materials.

As consumer demand for transparency and ethical sourcing increases, brands that invest in rigorous certification processes and adhere to these evolving standards will gain a competitive advantage in the marketplace.

The Next Frontier in Upcycled Perfumery: Embracing Technology and Sustainability

As consumer demands for sustainability, authenticity, and uniqueness continue to shape the fragrance industry, upcycled perfumery is entering a transformative phase. The integration of AI and biotechnology is not only revolutionising ingredient discovery and refinement but is also setting the stage for the future of perfumery. Here’s what to expect in the evolving landscape of upcycled fragrances:

• Hyper-Personalisation: Leveraging AI and biotechnological advancements, we can now create customised scent compositions that cater to individual preferences, offering a truly unique and personal fragrance experience.
• Closed-Loop Perfumery: Emphasising full circularity, brands are repurposing in-house waste streams to craft bespoke scent components, promoting zero-waste in production processes.
• Sensory Complexity: With the refinement of upcycled ingredients, perfumers can achieve deeper, richer, and more enduring fragrance profiles, enhancing the sensory appeal of products.
• Sustainability as Core Brand Identity: Sustainability is transitioning from a unique selling point to a fundamental expectation within the fragrance market, integral to a brand’s identity.

Technological Innovations Driving Upcycled Perfumery:

• AI-Driven Scent Modelling: Advanced algorithms are now used to analyse and predict optimal upcycled ingredient pairings, optimising the creation of unique olfactory experiences.
• Biotech-Enhanced Fermentation: This technique allows microbial processes to transform agricultural waste into new, unexpected fragrance molecules, improving both stability and intensity.
• Molecular Reconstruction: Scientists are isolating and enhancing key aromatic compounds from upcycled sources, significantly boosting their efficacy in fine fragrance formulations.
• Predictive Consumer Testing: AI-powered tools are providing invaluable consumer insights, helping brands determine which upcycled scent combinations will resonate best across different market segments.

Challenges and Opportunities

Upcycled fragrance formulation faces challenges such as standardisation of scent quality, regulatory approval, and supply chain consistency because of dependence on generation of the primary raw material. However, increasing consumer awareness around sustainability provides scope for fragrance manufacturers and brands to educate and innovate in this space.

The integration of upcycled ingredients in fragrance presents a game-changing opportunity to reduce waste, minimise environmental impact, and embrace circular beauty principles. As consumers become more conscious of sustainability, upcycled fragrances are set to become a mainstay in modern perfumery, bridging luxury with responsibility.

More than simply repurposing waste, thanks to advanced extraction techniques, chemical analysis, and innovative blending methods, upcycled materials are proving to be viable, high-quality, and environmentally responsible alternatives to conventional fragrance ingredients. As demand for sustainable beauty grows, upcycled perfumery is well-placed to redefine the industry’s future, bridging the gap between scientific ingenuity and olfactory artistry.

To explore how your brand can harness the many benefits of upcycled fragrance in your product development, please get in touch.

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.