Speciality chemicals company Clariant is significantly raising prices on all product lines in its Industrial & Consumer Care portfolio in the EMEA region.
Effective immediately, or as contracts allow, prices will increase by 25-35%, it said.
The Swiss-based supply giant has blamed its cost adjustments on a toxic cocktail of essential raw materials’ price increases, continued growth in both domestic and international freight costs, higher packaging costs and steeply rising energy costs.
Clariant is not the first major chemicals name to pass on heavy price increases to its customers.
Last month, BASF’s North America business announced significant price rises across its Care Chemicals portfolio, which come into effect today (1 December).
Here, prices across all product lines in the category soared 15-25%.
Again, price adjustments in this instance were attributed 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.
A spokesperson for the UK-based industry association the Cosmetic, Toiletry and Perfumery Association (CTPA) explained that there are several important factors which can impact the price of ingredients and finished cosmetic products: "For example, supply chain and shipping costs, customs clearance and import costs, rising fuel prices and costs associated with complying with existing and new legislation, such as UK REACH.
"Many industries may be affected by supply and delivery issues and the cosmetics and personal care industry will be no exception. Companies, stores and online shops are working hard to ensure that customers’ favourite products will be available."
They added: "CTPA advice to cosmetics industry businesses is to make sure they plan ahead; be aware of upcoming changes to regulations, for example, new ingredient restrictions which may require product reformulation, and any updates to horizontal chemicals legislations which can incur compliance costs.
"It is essential to know the supply chain – companies should discuss ingredient supply in general and UK REACH implications with their ingredient suppliers to find out their plans for registering the ingredients being purchased.
"Clearly, supply chain issues are extremely important for the industry and consumers, and supply chains are under strain at present. However, companies across the whole cosmetics supply chain are working hard to ensure that we are still able to purchase our favourite products."