AAK Annual Report 2020

AAK Annual Report 2020 24 Personal Care AAK applies its technical expertise and technological know-how in the development of high-performing, functional 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, as well as in diaper coatings to help protect sensitive baby skin. Our product range is appreciated for the moisturizing properties and sensory attributes it brings to final personal care formulations. Trends Trends supporting the continued global volume and value growth of the industry include a growing pop- ulation, 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, traceability and responsibly processed ingredients and personal care products continue to be highly important for consumers and cosmetic manu­ facturers. In response to our customers’ increased need for communicating and documenting their sustainability commitments, we have in 2020 launched traceable product variants in our shea and coconut portfolios. The Covid-19 pandemic has not had a neg- ative impact on this position. Leading industry players’ sustainability commitments and communicated targets remain. Future growth Though the cosmetics industry is global, it continues to be the mature western markets (Europe and North America) that consume most plant-based emol- lients. 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.