Explosion in cocoa prices: Is there a risk of price shock in cosmetic products?

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Is there a serious increase in the prices of cosmetic products? – Cocoa butter is a key ingredient in many lotions, creams, soaps, lip balms, conditioners, sunscreens and makeup products. Cocoa butter soothes the skin, has a moisturizing effect, contains many vitamins and minerals and has a very long shelf life. A total of 34 cocoa products can be found on the INCI list, i.e. the list of approved ingredients in cosmetic products.

On February 26, 2024, cocoa beans were trading at a record high of $6,557 on the New York Mercantile Exchange, the leading futures exchange for agricultural products; The price has now dropped to $6,327. The price of cocoa has increased by almost 50 percent since the beginning of the year. This is due to climate and weather-related declines in cocoa production, as well as supply chain issues, especially in West Africa.

It is clear that this makes chocolate significantly more expensive. In the case of cosmetic products, their effects are less obvious.

The association expects only minor price increases

Due to antitrust standards, cosmetics manufacturers and the Swiss Cosmetics and Detergents Association (SKW) are not allowed to make any statements about the development of cosmetics prices in relation to raw material prices.

But SKW director Bernard Cloëtta (67) says: “Cocoa is just one of thousands of raw materials in cosmetic products. “As long as cocoa is used in small concentrations, this will have only a minor impact on the pricing of individual products.”

The Beiersdorf company, which owns brands such as Nivea, La Prairie and Labello, argues in much the same way: “Due to the small concentration in cosmetic products, the cocoa raw material has only a small impact on the pricing of our products.” Cocoa butter also plays a “minor role,” according to Weleda spokeswoman Britta Meys.

But in general, the concentration of cocoa butter in cosmetics can vary from a low percentage (1 to 5 percent) in lotions and creams to a much higher percentage (20 to 100 percent) in more concentrated products such as lip balm or body butter. . In the second case, the price increase is likely to be more pronounced.

Cocoa price increase with minor consequences

Andrea Ullius (55), director general of the pharmacists’ association, notes that “almost all raw materials have become more expensive in recent years” and, as a result, cosmetics prices have generally increased. However, it is difficult to understand how much of the price increases may be due to general inflation, regulatory changes, supply chain bottlenecks or raw material prices.

The Federal Customs Administration reported that the amount of cocoa butter imported in 2023 increased by 2.5 percent compared to the previous year, but the value of the goods calculated for this increased by 9.2 percent.

Source :Blick