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Published
Sep 17, 2021
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Personal care prices rise due to high raw materials prices

Published
Sep 17, 2021

Increasing raw materials costs has led numerous fast-moving consumer goods businesses to increase their prices for product categories including haircare, soaps, and skincare, among others. 

Dabur Ltd has had to adjust prices on certain products to meet rising raw materials costs - Dabur


“We are witnessing an unprecedented commodity inflation across key raw material and have undertaken calibrated weighted average price increases of the mid-single-digit on selected SKUs of our hair oil brands to mitigate part of this impact,” a Dabur spokesperson told the Press Trust of India.”  
 
The increase in production costs has led Dabur to increase retail prices for its hair oil brands including Amla, Vatika, and Anmol Gold Coconut. These price hikes could cause tension with shoppers who, still facing economic challenges due to the pandemic, have less money to spend on FMCG products.

Although some businesses are attempting to ride out the current production prices and keep retail prices the same as long as they can manage to, Hindustan Unilever has also increased its prices on select products, ET Bureau reported. The business has increased prices for its soaps including its brand Lux. 
 
Packaging costs have also increased recently, adding to overall production costs. However, the second half of the 2022 financial year could see these price hikes ease in line with post-pandemic economic recovery.

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