AAK Annual Report 2018

24 24 AAK applies its technical know-how and expertise in the development of high-performing, functional emollients for the cosmetics industry. 2018 marked our 30th anniversary, having initially started in 1988 to develop customized solutions for cosmetic giant L’Oréal. Today, we serve all customer categories, from local niche brands to multinational brand leaders. Solutions Our plant-derived emollients, distinct from synthetic, animal or fossil-based raw materials, are primarily used for skin care applications, including face care, body care, baby care, and sun care; but are also used in hair care, make-up, deodorants and wet wipes. Our product range is appreciated for the moisturizing properties and sensory attributes it brings to final cosmetic formulations. Trends Macrotrends supporting the continued global volume and value growth of the industry include a growing population, an increasing spending power in emerging markets, and an aging, active, health-oriented and appearance-focused population (female and male) in mature western economies. The increased demand for natural ingredients is driven by the growing concern and awareness of the health of our body and planet. New products The cosmetics industry is constantly looking for new textures or ingredients giving a surprising skin feel. In response to this, our Lipex SMP was launched in April 2018. The product’s transition from solid to liquid takes place within a very narrow temperature range, which means that this solid product melts immediately upon skin contact. This gives a “cooling skin feel” which is very appealing in aftershave, after sun and other skin- soothing products. Future growth Though the cosmetics industry is global, it continues to be the mature western markets (Europe and North America) that consume the majority of plant-based emollients. This is due to these regions being the biggest manufacturers and consumers of skin care products and having the biggest consumer demand for natural alternatives. China and Brazil are expected to follow suit as their markets mature. Personal Care 30 years of continued success