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Terpinen-4-ol is responsible for tea tree oil's broad-spectrum antimicrobial activity and makes it a well-researched option for acne.

Clinical studies support 5% tea tree oil as an effective topical treatment for mild to moderate acne. A study with 124 patients compared 5% tea tree oil gel to 5% benzoyl peroxide and both reduced acne (though tea tree oil worked more slowly).

Besides acne, it is also seen in anti-dandruff shampoos and scalp treatments for it's antimicrobial and anti-seborrheic properties.

Safety-wise, the allergic potential of low concentrations on healthy skin is considered low. However, oxidized (old or improperly stored) tea tree oil is a stronger sensitizer.

Irritation can also occur if using the undiluted oil on skin; it's best to use this ingredient as part of a carefully crafted cosmetic formula. This is because regulations require tea tree oil in cosmetics to be stabilized to prevent degradation.

This ingredient has been deemed safe up to 2% in shampoo, 1% in cleansers, and 0.1% in face cream by the EU's Scientific Committee on Consumer Safety (SCCS).

There is some lab evidence that tea tree oil is antifungal against Malassezia, but it is a supportive option at best and not a replacement for proven antifungal treatments.

You'll typically see this ingredient used in very small amounts; anything above 0.001% in a leave-on product or 0.01% in a rinse-off has to be named on the label in the EU. The citrus oils that carry it sit around 0.5-1% in a finished formula.

Fresh limonene is a weak allergen; the real issue is that it slowly reacts with air and then breaks down from oxidation to create hydroperoxides (which are strong sensitizers). This is why suppliers are required to keep the peroxide value below 20 mmol.

Positive reactions in people being investigated for eczema vary:

It's worth skipping if you have a known fragrance allergy or a compromised barrier, but the risk is low for most people.

Older or long-opened products are also more likely to bother you than fresh ones due to oxidation.

An expert safety panel reviewed it and found it safe when formulations are made to be non-irritating.

As a pH adjuster, it's typically used well under 1% though regulatory caps go much higher: 5% in nail cuticle removers and 2-4.5% in hair straighteners.

Though there is some concern for irritation from raw or high pH material, a well-balanced formula will be a non-issue for the vast majority of people.