Impact of rising prices of cosmetics packaging materials

Cosmetic packaging is the first things that resonate with consumers. They have played a huge role in building consumer trust. The effectiveness of cosmetic containers depends on their ability to be eye-catching, attractive and easy to use. Therefore, brands consider investing a large part of their budget in high-quality packaging. In the past five years, the rising cost of cosmetic packaging has become a concern in the brewing of the whole beauty industry. Raw materials and transportation regulations, as well as growing demand and criticism, polarize plastic packaging and contribute to this trend. Then, the outbreak of covid-19 global pandemic has brought excessive pressure to several aspects of the packaging business and exacerbated the cost. This article traces the current situation, common reasons, the rise of beauty packaging prices, and what brands can do to gain in the developing market.

The unprecedented surge in the cost of cosmetic packaging is shaking the whole beauty industry.

The surge in the cost of materials and services is part of every economy. To some extent, most industries have an early plan to prepare and follow the trend. But the fact that almost everything becomes so expensive overnight poses a terrible challenge to the beauty industry that most brands are not ready to deal with.

Since 2020, the price of plastics in the domestic market has shown an upward trend, and the contract price of high density polyethylene (HDPE) is about US $0.285/lb. In the first quarter of 2021, the price of plastic resin rose historically, exceeding US $1.05/lb, or 77.25 cents per lb

From material costs, packaging and printing to transportation and distribution, it is undoubtedly a cash flow nightmare. Some cost surges are temporary, while others are not, which exacerbates brand uncertainty. Will they threaten market share by raising prices, or will they wait for costs to return to normal by reducing profits? These decisions are difficult and confusing!

In view of the current situation, from the perspective of customers' interests, we Vanky Packaging actively explore new ways of cooperation with customers, and help customers save costs by deepening cooperation and helping customers formulate annual demand planning.

Looking forward to work with you :）