Hefty increases blamed on 'volatile' price and availability of raw materials, as well as increased freight, packaging and energy costs
BASF’s North America business has announced significant price increases across its Care Chemicals portfolio.
From 1 December, prices across all product lines in the category will rise approximately 15-25%, according to BASF Corporation, the New Jersey-headquartered arm of Germany’s BASF Group.
Changes will affect commonly-used cosmetic ingredients, including surfactants, emulsifiers, polymers, emollients, chelating agents, cosmetic active ingredients, UV filters and enzymes.
The chemicals giant has attributed the price adjustment to ‘significant volatility’ in pricing and availability of essential raw materials, continued escalation of domestic and transcontinental freight, increased packaging costs and rising energy costs.
BASF’s decision follows announcements by other major players across the beauty industry – including Procter & Gamble and Unilever – forecasting soaring commodity and freight costs.
Speaking with Cosmetics Business last month, Charlie Walker, Head of Sales for Walker Logistics, revealed that the cost of shipping a 40ft container from East Asia to the UK had increased tenfold and now costs US$20,000.
“I've never seen prices that high in my lifetime,” he explained. “And the costs, and the crisis show no signs of abating.”