Price shock caused by the Iran war: make-up and creams are becoming more expensive

“With so many containers stuck in the Middle East, container availability is tighter and goods are not moving efficiently.” Higher costs for some chemical components and packaging, often sourced from the Far East, would add further pressure.

“This is the perfect storm”

In addition to higher costs, the industry is also experiencing weakened consumer purchasing power due to inflation. “This is the perfect storm,” says Dominici. For Kiko, he estimates the additional logistics costs this year to be around 1.5 million euros. The company sells lipsticks from 5 euros and mascara from 7.50 euros and operates over 1,000 branches worldwide.

Dominici is not alone in his fears: Concern is growing among the cosmetics companies that recently met at Cosmoprof, one of the largest industry trade fairs in Bologna, northern Italy, about the effects of Iran’s blockade of the Strait of Hormuz, which has been ongoing for five weeks. They warn of rising costs for raw materials, packaging and logistics as well as longer delivery times.

Difficulties in producing crucibles

The container manufacturer Yonwoo, which supplies L’Oreal among others, says it is having difficulties securing stocks of plastic granules for the production of jars. The contract manufacturers Intercos and the Ancorotti Group, also based in Italy, say they are not yet facing any major bottlenecks. However, they cite higher logistics costs, longer delivery times and rising raw material prices as the biggest challenges.

“What used to take eight weeks can now take 12 to 14 weeks”

“Delivery times have increased as routes are longer and ports are more congested,” says Roberto Bottino, managing director of Ancorotti. “What used to take eight weeks can now take 12 to 14 weeks.” Some customers have therefore switched to rail transport to Asia. It’s hard to imagine that supply chain cost increases wouldn’t ultimately be passed on to consumers, Bottino adds.

Looking for alternative transport routes

Companies are looking for ways to work around the disruptions. “Customers in the Middle East value quality and are willing to pay a premium for added value. Therefore, not being able to reach these markets may have a negative impact,” says Fabio Franchina, chairman of hair care maker Framesi. His sales partner for the region is checking alternative routes. “They are considering alternative transport routes, such as shipping to Jeddah and further transporting the goods by road instead of routing them through Persian Gulf ports,” Franchina said. Some of the goods are also transported by air instead of sea freight, which further increases costs.

For Italy, one of the industry’s global heavyweights, there are huge sums at stake. According to the industry association Cosmetica Italia, the country’s cosmetics production reached a value of 18 billion euros in 2025. Of this, exports accounted for 8.4 billion euros. This makes Italy the fifth largest exporter of beauty products in the world and one of the leading manufacturers of hair color, eye makeup and fragrances.