THE WAR ALSO HIT BEAUTY - COSMETICS ARE MORE EXPENSIVE AFTER FUEL AND ENERGY PRICE INCREASES - Filenews 13/4
The war in Iran, the skyrocketing cost of petroleum products, energy, transport and many raw materials in industry, also affected the supply chain of cosmetics and beauty products in general, raising their costs.
From plastic jars and lipstick tubes to their transport and distribution, everything is more expensive today than it was two months ago.
According to a Reuters report, price pressures were widely discussed at the cosmetics sector trade fair in Bologna, northern Italy. The Cosmoprof exhibition attracted 3,100 exhibitors from 68 countries and 255,000 visitors from 150 countries, from companies looking for packaging solutions to retailers looking for new products.
Cosmetics companies, Reuters notes, are mainly concerned about rising raw material and transportation costs, due to rising oil prices and disruptions in maritime transport.
"We are starting to see increases in costs due to energy price inflation, combined with delays in deliveries," Simone Dominici, CEO of Italian cosmetics group Kiko, who estimates additional supply chain-related costs of about 1.5 million euros for the group, told the agency, during the year.
Kiko, which sells lipsticks from €5 and mascara from €7.5, operates more than 1,000 stores worldwide.
"With so many containers stuck in the Middle East, goods are not moving efficiently," Dominici said, adding that higher prices for some chemical ingredients and packaging — many of which come from the Far East — would add further pressure.
As the crisis in Iran disrupts supply chains, Yonwoo, a container maker for L'Oreal, and beauty companies K-beauty, said they are struggling to secure stocks of plastic resin to make the containers used for skincare and cosmetics.
Concern about consumption
Beyond higher costs, the industry could also face lower demand from consumers, whose purchasing power is being eroded by inflation, Dominici said. "It's the perfect storm," he warned.
Private group Ancorotti, among Italy's largest manufacturers in the sector, said they have yet to face significant supply shortages, but cited higher logistics costs, longer lead times and rising raw material prices as challenges. "Delivery times have lengthened, as routes have become longer and ports more congested. What once took eight weeks, can now take 12 to 14 weeks," said Ancorotti CEO Roberto Bottino. Some customers have turned to rail transport to reach Asia, Bottino added.
The Ancorotti Group has a revenue of around €220 million per year from selling products to beauty brands worldwide. Bottino said it was hard to imagine that cost increases in the supply chain would not eventually be passed on to consumers at a later stage.
"Middle Eastern customers value quality and are willing to pay an extra amount for added value, so not being able to access these markets can have a negative impact," said Fabio Franchina, president of hair care manufacturer Framesi. Some goods are currently transported by air instead of sea, he added, further increasing costs.
Italy produced €18 billion worth of cosmetics in 2025, including €8.4 billion in exports, according to industry body Cosmetica Italia, making the country the world's fifth-largest exporter of beauty products and one of the leading producers of hair dyes, eye makeup and perfumes.
