BOLOGNA:The Iran war is seeping into the cosmetics supply chain, pushing up the cost of everything from plastic jars and lipstick tubes to transport, and reminding the beauty industry that even a tub of face cream depends on fragile global trade routes.
Cost pressures were a recurring theme last week at one of the sector’s largest trade fairs in the northern Italian city of Bologna, as executives watched Iran’s blockade of the vital Strait of Hormuz shipping route approach a fifth week.
The Cosmoprof fair drew 3,100 exhibitors from 68 countries and 255,000 visitors from 150 nations, ranging from companies seeking packaging solutions to retailers scouting new products.
Cosmetics companies are primarily worried about higher raw material and transport costs due to rising oil prices and disrupted shipping, five industry executives told Reuters.
“We are beginning to see cost increases driven by energy price inflation, compounded by delivery delays,” said Simone Dominici, CEO of Italian cosmetics group Kiko, who estimates additional logistics-related costs of about 1.5 million euros ($1.7 million) for the group over the year.
