The Middle East Conflict and Its Growing Impact on the Global Personal Care Industry
The current geopolitical landscape in the Middle East, particularly the ongoing 2026 conflict involving Iran, the United States, and Israel, has created an environment of intense global uncertainty. The situation has disrupted different global markets, maritime routes, financial stability, and international supply chains.
For the personal care industry which relies on stable logistics and predictable costs, the ripple effects are already visible. Rising fuel prices, anticipated shortages, disrupted shipping routes, and policy changes from raw material suppliers are converging to create a challenging environment for contract manufacturers, material suppliers, brand owners, and consumers.
Energy Market Volatility and Rising Costs
One of the most immediate consequences of the Iran conflict has been the destabilisation of the global energy market. For the personal care industry, energy price spikes manifest in several ways:
- Increased freight and transportation costs, affecting both inbound raw materials and outbound finished goods.
- Higher manufacturing costs, as energy-intensive processes become more expensive.
These challenges combine to reduce operational flexibility for brands and contract manufacturers, potentially leading to delays, cost renegotiations, and reduced margins.
Raw Material Disruptions and Supplier Policy Shifts
Since the conflict began, many raw material suppliers and distributors have revised their commercial terms and shipment policies, particularly for goods originating from or transiting through the Middle East. Reports of unfulfilled price commitments, where previously quoted prices can no longer be honoured for undelivered or unshipped goods, have become increasingly common.
This behaviour mirrors broader economic instability across the region. Supply chain disruptions, fuel shortages, currency volatility, and inflation have affected pricing structures for commodities and chemicals used widely in the personal care industry.
While cost increases for goods sourced directly from affected regions are expected, what industry leaders did not anticipate is the generalised application of surcharges and price lifts across entire product portfolios. Such broad‑based increases suggest suppliers themselves are facing systemic instability, higher operational risk, and rising insurance and freight premiums.
For personal care businesses, including skin products manufacturers, the implications may include:
- Budget unpredictability, as prices fluctuate more frequently and with less notice.
- Extended lead times, particularly for speciality ingredients sourced via Middle Eastern trade routes.
Suez Canal Tensions
Beyond the Strait of Hormuz, tensions near the Suez Canal present an additional layer of threat to global trade. The canal is a key artery for shipping between Europe and Asia, and any instability in the region could cause rerouting, significant delays, or even temporary blockages.
For the personal care industry, deeply globalised and dependent on complex supply networks, the Suez Canal is essential for:
- Bulk shipments of various raw materials.
- Import and export of packaging materials such as plastics, glass components, closures, and tubes.
- Movement of finished goods for multinational brands distributing globally.
Any disruption here will likely result in:
- Longer transit times (rerouting around the Cape of Good Hope adds 10–14 days).
- Sharp increases in freight rates.
- Inventory shortages, affecting both mass-market and prestige product categories.
Downstream Effects on Brands and Consumers
While transportation, ingredient, and packaging costs are rising simultaneously, which will force brands to face difficult decisions of passing on costs to consumers, there is also the added logistical complication on components and raw materials which threatens timely supply. It is going to be a testing time.
Working with Jarvis
At a time, which is being defined by uncertainty, proactive planning, not reactive problem‑solving, will determine which organisations emerge stable, adaptable, and competitive. At Jarvis, we encourage customers, to plan ahead and share their forecasts with us, so that we can secure raw material stocks early and avoid delays in production. We also advise that cash flow forecasts are re-visited and revised to account for the current situation. Do not over-stretch finances and remember at times such as these banks are unlikely to extend credit. We strongly advise to regularly speak to your suppliers, if they are in it for the long terms, they will understand constraints and work with you and, if they have been around for 50 years, they will have some firsthand experience of navigating economic turmoil.
