How has formulation strategies in regards to supply chain adapted to become more resilient in the face of recent disruptions (e.g., COVID-19, natural disasters, geopolitical tensions)?

To respond to fast-moving trends while navigating volatile sourcing conditions, product developers must work more than ever very closely with supply chain, regulatory, and marketing teams. Innovation can no longer happen in isolation. Ingredient feasibility, regional compliance, and logistical constraints must all be considered early in the product development cycle. This collaboration across departments helps cosmetic producers to stay agile, avoid late-stage reformulations, and bring products to market that are both desirable and deliverable. By fostering a culture where creativity and operational intelligence go hand in hand, cosmetic producers can better meet consumer expectations while maintaining supply chain resilience.

How do more recent trade barriers, tariffs, and import/export restrictions impact the global supply chain for personal care products. What strategies can be used to mitigate these risks? Can localizing supply chains—such as sourcing ingredients regionally—help mitigate risks, and what trade-offs does this present in formulation

Companies must rethink their approach to supply chain management. The focus can no longer be solely on cost-efficiency. Instead, resilience is key: diversified sourcing, regional supplying networks, long-term supplier partnerships, and transparent risk assessments are becoming strategic necessities. Businesses that are heavily dependent on a single country or supplier are risking major disruptions, product shortages, or reputational damage. The trade-offs are most likely the higher cost in production but also here companies have to adapt. As an example, they actively approach these challenges in their Marketing strategy. Consumers today want more than just a great product—they demand the story behind it. Where do the ingredients come from? How is the product made? How does the brand handle sourcing challenges or ethical trade-offs? Brands that address these questions openly and proactively are more likely to gain lasting consumer trust, even in times of uncertainty. In this new reality, success depends not only on innovation in product development but also on innovation across the entire value chain. Cosmetic brands that integrate sustainability, transparency, and strategic supply chain management will not only remain competitive but also help shape a more resilient and responsible future for the industry.

Balancing Supply Security and Traceability – A Core Challenge for Cosmetic Manufacturers and Suppliers

For cosmetic manufacturers, maintaining the balance between supply security and traceability of raw materials is a critical strategic challenge. On one hand, companies are expected to meet the highest standards of quality and transparency—particularly with regard to the origin and processing of ingredients. On the other hand, it is essential to ensure a stable and flexible supply chain to avoid production disruptions and to respond quickly to market dynamics. Some manufacturers, especially multinational companies and big brands have started to implement highly restrictive approval processes for both existing and new suppliers. These stringent qualification procedures aim to guarantee full traceability of all raw materials—an important factor in complying with regulatory requirements, protecting brand reputation, and maintaining consumer trust. However, this approach comes with risks: limiting the pool of approved suppliers can significantly reduce a company’s agility in times of supply shortages or disruptions. When raw materials become scarce, switching to alternative sources can be difficult or even impossible due to lengthy and complex approval protocols. To navigate this tension, companies must adopt more flexible strategies. One effective approach can be to establish a process to screen and qualify alternative suppliers before an urgent need arises. Close collaboration with strategic supply chain partners, investment in digital traceability systems, and a risk-based supplier assessment process can also support the goal of ensuring both transparency and supply resilience.

At the same time, increased demands for traceability present a challenge from the supplier’s perspective. Full transparency along the value chain often requires suppliers to disclose their own upstream partners and sourcing structures. This can lead to a strategic dilemma: by exposing critical parts of their supply chain, suppliers risk giving away proprietary know-how and enabling customers to approach sub-suppliers directly. Understandably, this raises concerns about protecting intellectual property, safeguarding competitive advantages, and preserving the integrity of established business relationships.

Ultimately, resolving this complex interplay between traceability and supply security requires a shift in mindset—from rigid structures toward agile, collaborative supply chain management that balances transparency, resilience, and trust.