Common causes of rising cosmetic packaging costs

Common causes of rising cosmetic packaging costs

Suppliers are changing, triggering a paradigm shift across the chain. So what is causing this unprecedented volatility in the beauty industry? Here are some core reasons.

Epa regulations on raw materials

So what are the raw materials of cosmetic plastic containers? In the cosmetic industry, plastic materials commonly used include

·ABS (acrylonitrile – styrene – butadiene copolymer)

·PC (polycarbonate)

·PP (polypropylene)

These variations of plastic are mainly used in the manufacture of bottles, bottle caps, lipstick tube shells, and many such components. On the one hand, raw material prices are affected by national environmental protection policies. These actions and priorities require the adoption of more advanced production methods to meet environmental standards. The availability and supply of many raw materials fundamentally affect costs.

● The Hour of The Green Mountain

To achieve the goal of "green mountains are golden mountains," chemical companies have started a clean-up spree. Some chemical companies have been forced to limit production. Under the influence of suspension of production and limited production. For the same reason, many raw materials are in short supply and prices naturally rise.

● Imported silica gel

Affected by the epidemic of organic silicone abroad, most of the domestic cosmetics are imported silica gel, which heavily depends on the import of the United States, Japan and other countries. And imported goods are always more expensive.

● COVID - 19 effects

Chinese production is complementary, but not completely gone. However, due to the COVID-19 outbreak, foreign raw material production has yet to resume. In addition, because of the pandemic, lockdowns, consumer hoarding behavior driving demand for products, and so many unusual patterns in the supply chain have caused widespread supply chain disruptions.

How does the cosmetics industry respond to the rising cost of packaging?

It's time for brands to step up to the plate and pass the test before they drown. Solutions are not straightforward, and we need a strategic plan to get through the testing time. Going back to basics is not an option, as most cost spikes are permanent, but with patience and a streamlined approach, cosmetics brands can steadily improve margins. Here are some decisions you can make that happen.

Adapt to the new normal with technology

Use digital technology! Learn how to combine technology and packaging and you can save a lot of operating income.

Vanky will be your forever partner to help you in packaging solutions.

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