AAK Annual Report 2019

27 27 AAK applies its technical expertise and technological know-how in the development of high-performing, func- tional emollients for the cosmetics industry. Since 1988, when we started to develop customized solutions for cosmetic giant L’Oréal, we have continued to develop our offer. Today, we are proud to 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 Trends supporting the continued global volume and value growth of the industry include a growing popu- lation, 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. Sustainable and responsible Ethical sourcing and traceability are becoming increas- ingly important for consumers and cosmetic producers. In response to customer interest in increasing the social value of their brands, we have developed Sustainability Partner Programs in collaboration with the Global Shea Alliance, where customers or brands can engage directly in supporting the optimization of the shea sourcing and processing in West Africa. Burt’s Bees and Beiersdorf are two examples of such partnerships in 2019. 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. Sustainable solutions to the cosmetics industry Personal Care