It seems to be a rather complicated process, but basically, scented oil is encapsulated inside microscopic containers. This paste is smeared on a piece of paper and dried. When scratched, the containers break and the smell is let loose.
Source: [https://www.mentalfloss.com/article/20825/how-does-scratch-and-sniff-work](https://www.mentalfloss.com/article/20825/how-does-scratch-and-sniff-work)
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