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STORY: European beauty companies are facing shortages of paper, glass, and some key oils and alcohols

Global supply chain disruptions are being exacerbated by the ongoing Ukraine, health and energy crises

That’s leading to ever higher prices for in-demand cosmetics and perfumes

Source: Bain

Production costs in the beauty industry are rising by as much as 30%

The $500bln sector relies heavily on Ukraine for key raw ingredients like grains, beets and sunflower seeds

The cost of glass and paper packaging is also soaring along with high gas prices, with Italy's Isem Group hiking the price of its boxes by up to 40%

Emmanuel Guichard, FEBEA secretary general says:

"We're in crisis management mode when it comes to these subjects of sourcing"

Source: McKinsey

Meanwhile global cosmetics sales are set to eclipse the past two years and even exceed 2019’s $538bln, with high demand for higher-priced beauty products

Source: NPD Group

Fragrance sales were up by 15% in 2021 in the U.S., with purchases of $175+ perfumes more than doubling

Industry executives told Reuters they expect consumers will have to carry the burden of these higher costs eventually