Iran War Disrupts Beauty Supply Chain

The Iran war has led to a blockade of the Strait of Hormuz, a critical global shipping route, for nearly five weeks. This blockade has caused significant disruptions and cost increases across the cosmetics supply chain, affecting everything from plastic packaging to transport. Italian cosmetics companies, including Kiko S.p.A., Intercos, and Ancorotti Group, are experiencing higher raw material costs, energy price inflation, and extended delivery times. Yonwoo, a container manufacturer, is struggling to secure plastic resin. The industry is exploring alternative, more expensive transport routes like rail and air, and there are concerns that these rising costs will erode consumer purchasing power and soften demand. Italy, a major exporter of beauty products, is particularly affected by these global trade route challenges.