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

The cosmetic industry uses a significant number of ingredients that are all or partially imported. There are 1000s of ingredients that are not grown in the US or even in North America. Not to mention the difference in labor costs. Adding the tariff and the fluctuation of the US dollar has further increased import costs. The U.S. imports a significant number of ingredients and no amount of formulator skill can change the fundamental need for these materials. As the trend for natural and plant derived materials continues, our dependence on coconut, shea, palm, fractions of all of these, essential oils and other fragrance chemicals will increase.

As long as there is a 10% tariff with no firm agreements in sight, larger brands will be unable to plan.

Additionally the decrease in the value of the US dollar adds additional cost to imports.

There are no magic substitutions. In the US the cosmetic products we grow and process are almond oil, hemp seed oil, soy and corn oil. Not any of my favorite oils, none of them are saturated so no handy fractions of stearic or lauric. Otherwise it is all petroleum based - not what consumers want.

How have rising material costs affected formulation and pricing? How can formulators balance cost pressures from clients/brands with consumer expectations for quality and affordability?

Speaking of natural and organic oils, some can be changed to lower costs if one has a good understanding of fatty acid profiles. One can make the finished formula “behave” more as desired if one really understands oil chemistry.

What challenges do you face in sourcing sustainable raw materials for personal care formulations, and how do you ensure ethical and environmentally responsible sourcing? How does sustainability influence supply chain decisions for personal care formulations, and what innovations are emerging to address these challenges (e.g., packaging, ingredient sourcing, waste reduction)? How can brands and formulators ensure supply chain transparency to meet this growing consumer demand for ingredient traceability and ethical sourcing?

Cost, cost, cost. Also – as tourism has gone down, the cost of freight has gone up – there are fewer opportunities for airfreight and a less dependable schedule for containers.

How can brands, formulators, suppliers, procurement teams, product developers, marketing, etc. collaborate to ensure a more predictable and efficient supply chain?

Long term planning helps a lot but the environment is not supporting that at this time.

How can technology, such as AI, be utilized to improve transparency, traceability, and efficiency in the personal care development and supply chain? How can digital tools or predictive analytics help improve inventory management and forecasting? Are there any current examples?

Distributors and chemical suppliers should understand and clearly communicate some of the issues noted above. We can help, but that needs to start with a dialog.