From plastic containers to transportation, the war in Iran is raising costs for the beauty industry

From plastic containers to transportation, the war in Iran is raising costs for the beauty industry

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Item 1 of 2 Visitors browse stalls at the Cosmoprof beauty trade show in Bologna, Italy, March 26, 2026. REUTERS/Elisa Anzo

[1/2]Visitors browse the stalls at the Cosmoprof beauty fair in Bologna, Italy, March 26, 2026. REUTERS/Elisa Anzo Purchase Licensing Rightsopens a new tab
  • The war in Iran drives raw materials, packaging, logistics costs
  • Shipping delays, low container availability and problems
  • Some luxury companies ship new goods, using air freight
BOLOGNA, Italy, April 1 (Reuters) – Iran’s war is wreaking havoc in the cosmetics supply chain, raising the cost of everything from plastic bottles and lipstick tubes to shipping, and reminding the beauty industry that even face cream depends on fragile global trade routes.
Cost pressures were a recurring theme last week at one of the sector’s largest trade fairs in the northern Italian city of Bologna, as executives watched Iran’s blockade of the key shipping route of the Strait of Hormuz approach its fifth week.

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The Cosmoprof collection attracted 3,100 exhibitors from 68 countries and 255,000 visitors from 150 countries, from companies looking for packaging solutions to retailers looking for new products.

Cosmetics companies are particularly concerned about higher raw material and transportation costs due to rising oil prices and shipping disruptions, five industry executives told Reuters.

“We are starting to see an increase in costs driven by rising energy prices, compounded by delivery delays,” said Simone Dominici, CEO of Italian cosmetics group Kiko, who estimates additional costs related to supplies at around 1.5 million euros ($1.7 million) for the group over the course of the year.

Kiko, which sells lipsticks from 5 euros and mascaras from 7.5 euros, operates more than 1,000 stores worldwide.

“With many containers stuck in the Middle East, there is a tight availability of the container… and the goods do not move well”, Dominici said, adding that the high prices of some chemical components and packaging – most of them from the Far East – will add more pressure.

As the crisis in Iran upends supply chains, Yonwoo, the cosmetics maker for L’Oreal (OREP.PA)opens a new tab and K-beauty firms, said it was a catch to keep stocks of plastic resin to make pots used for skin care and cosmetics.

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In addition to higher costs, the industry may also face lower demand from consumers whose purchasing power is eroded by inflation, Dominici said.

“It’s a perfect storm,” he warned.

Intercos listed in Milan (ICOS.MI)opens a new tab and private group Ancorotti, among Italy’s largest contractors in the sector, said they had not faced a major supply shortage but cited high material costs, long delivery times and rising commodity prices as challenges.

“Lead times have increased as the routes are longer and the ports are more numerous. What used to take eight weeks can now take 12 to 14 weeks”, said Ancorotti CEO Roberto Bottino.

Some buyers are turning to rail transport to Asia, Bottino added.

The Ancorotti group makes about 220 million euros a year from selling products to beauty products worldwide.

Bottino said it was hard to imagine that supply prices would not be pushed down.

“Consumers in the Middle East appreciate quality and are willing to pay a premium for added value, so not being able to access these markets could have a negative impact”, said Fabio Francina, chairman of hair products manufacturer Framesi.

Francina said that the company’s distributor in the area is exploring other shipping options.

“They are looking at … (options such as) going to Jeddah and transporting goods by road instead of transporting them through Persian Gulf ports,” he said.

Some goods are currently being shipped by air instead of by sea, he added, adding to the cost.

Italy produced 18 billion euros of cosmetics in 2025, including 8.4 billion euros of exports, according to the industry association Cosmetica Italia, making it the fifth largest beauty products country and one of the leading producers of hair dyes, eye makeup and perfumes.

($1 = 0.8623 euros)

Reported by Elisa Anzolin. Edited by Mark Potter

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