Recently, the Guangdong Provincial Environmental Protection Bureau issued a “Detailed List of Cleanup of Environmental Protection Violations and Construction Projects in Guangdong Province”, among which hundreds of papermaking, printing, and packaging companies have either rectified or closed down. Most cosmetic packaging materials are made of paper, so some people predict that the price of cosmetic packaging materials will increase. So this prediction does not fly?
China Beauty Network understands that most of the paper used by cosmetic packaging manufacturers are purchased from outside paper mills. The environmental supervision is mainly aimed at paper mills. Many of these paper mills are small factories operating at a low cost and cannot meet environmental standards at all. As a result, there have been hundreds of papermaking, printing, and packaging companies rectifying or failing. This has not only caused a substantial increase in the cost of paper purchases by cosmetic packaging manufacturers, but has even increased the price of cartons used in corporate warehouses.
Someone may say that after this tune, it will return to normal. But this time the government seems to be real. Since November 15, 2016, the State Council Executive Meeting passed the "13th Five-Year Plan" for the protection of ecological environment, the central government dispatched inspection teams to the provinces several times, focusing on the rectification of heavy polluting enterprises such as paper making and printing. This time, what he did in Guangdong reflected the determination of the central government to rectify polluting enterprises. Therefore, this is by no means an outlet and will become the norm. In the future, papermaking, printing and other enterprises must intensify their investment in environmental protection in order to meet national environmental standards. This means that the rise in paper prices is already an irreversible fact.
In fact, this time, environmental protection rectification has had no direct impact on many cosmetic packaging material manufacturers because they have met the environmental protection standards. However, the sharp rise in paper prices has forced them to raise prices. Nie Jun, owner of Guangzhou Xuxin Industrial Packaging Co., Ltd., said that at least 15% price increase this year is required to ensure no loss. The increase in the price of packaging materials will inevitably lead to a rise in the cost of manufacturing cosmetics using packaging materials, and its retail price will have to be adjusted accordingly. This is a chain reaction that triggers the whole body. But this is undoubtedly worse for the cosmetics retail that is in the winter.
In fact, not only is the price of paper for producing packaging materials rising, but various raw materials for producing cosmetics are also rising. Taking mask fabric as an example, Zhang Xianzeng, general manager of Guangzhou Qianjiejie Nonwoven Products Co., Ltd. stated that its price in last year has increased by almost 20%-30%, but the profits of manufacturers have been reduced because cotton, silk and other fabrics are used to make facial masks. The material rises faster.
Raw materials and packaging materials are on the rise, so will the retail price of cosmetics products rise?
The increase in this chapter shows that even if the mask material is growing, he is not willing to choose price increases. He would rather sacrifice a portion of his profits than lose some of his customers.