the hygiene sector hit by shortages and rising costs

Toothpaste, deodorant, moisturizer: we use all these products on a daily basis. But today, the health and beauty sector is in crisis, confronted to shortages of raw materials, exploding production costs and price-cutting supermarkets. Normally, a plant La-Fare-Les-Oliviers (Bouches-du-Rhone) produces two tons of cosmetics every day. But right now, out of four production lines, two of them are shut down because one of the ingredients is missing, which is a substance based on sunflower oil.

These shortages are linked to the war in Ukraine, but also to the slowdown in transport in Asia. Deprived of its flagship product, the brand daylily has already lost 20% of its turnover. In addition, new costs are added, because the other ingredients, unusable alone, have a limited lifespan. This represents 5,000 euros of deadweight loss, and 30,000 euros of tied up cash for daylily.