Credit crunch continues to hit cosmetic suppliers

Published: 24-Jul-2008

As previously reported on cosmeticsbusiness.com, the current economic climate has forced many raw materials suppliers to increase their prices.


As previously reported on cosmeticsbusiness.com, the current economic climate has forced many raw materials suppliers to increase their prices.

This trend looks set to continue as yet another supplier has announced a price hike. The RPC Group announced today that is to implement price increases across its business of up to 15% with immediate effect.

It blamed the continuing rise in input costs including polymer, electricity and transportation. According to the company, a year’s electricity supply in the UK has risen by 50% since October 2005, while fuel prices have risen by 16% since the beginning of 2008.

“The entire packaging industry is under acute pressure and we are not exempt from this,” said RPC ceo, Ron Marsh. “We are operating on margins which simply cannot sustain these sort of increases and we therefore have to pass them on to our customers.”

In other news, Dow Chemical has reported its second quarter profit fell 27%, despite strong sales and double-digit price increases. Higher costs for energy and raw materials were blamed.

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