Global trade war: Kensing reflects on uncertainty in the beauty industry
EU member states have voted in favor of implementing countermeasures against the US tariffs, a proposal by the European Commission (EC). The EU counter-tariffs include shampoos, perfumes, aftershaves, and sunscreens.
Personal Care Insights speaks with Alejandro Abad, senior VP at Kensing, to discuss what the trade war could mean for the personal care industry and how the entire production process will feel its impact.
“The tariffs are expected to increase product costs, which will likely translate to higher-end product prices across the industry, which may cause a significant shift in consumer behavior. Those affected by a higher cost of living may change to lower-cost products,” says Abad.
He stresses that to combat this beauty companies must redefine their sourcing strategy to minimize tariff impacts and maintain competitive product pricing.
“The winners in this scenario will be those who can source materials at competitive prices. This shift will likely lead to a significant opportunity for local and regional suppliers less impacted by the tariffs.”
The EC says that these countermeasures can be suspended at any time if the US agrees to a fair and balanced negotiated outcome.
The EC says that these countermeasures can be suspended at any time if the US agrees to a fair and balanced negotiated outcome.Preparing for adverse effects
Kensing has implemented a robust sourcing strategy to mitigate the impact of tariffs and prepare for potential harmful effects.
Abad says the biggest concern is not knowing the outcome of the back-and-forth tariffs, “but we do know there will be many changes to the current situation.”
“We have taken proactive measures to contract raw materials from regions we identified as being at risk, and have secured certain inventories to ensure continuity. These steps are designed to protect the company from the volatility caused by tariffs and ensure that we can continue to operate efficiently.”
Abad further stresses that tariffs will impact the personal care industry, affecting everything from raw materials to contract manufacturing and brands.
“The beauty industry is highly interconnected, and disruptions in one area can have ripple effects throughout the supply chain.”
“While both US and European companies will face challenges, the extent of the impact may vary depending on their reliance on international suppliers and their ability to adapt to changing market conditions.”
Strategic global positioning
Rogasik says the stock market is the worst since 2008.
Kensing says it is in a good position to react to global uncertainties due to its strategic positioning of manufacturing plants.
“We have plants on three continents, which allows us to be agile and adapt quickly to changes. Our scale, geographical diversification, and agility will be a unique combination that will enable us to navigate the complexities of international trade more effectively than many of our competitors.”
Last week, in an exclusive video interview with Kensing’s CEO Serge Rogasik, at In-cosmetics Global 2025 in Amsterdam, the Netherlands, he detailed how the comapny has invested in feedstock to tackle the tariffs uncertainties.
“For every other CEO on the planet, there is only one topic today: tariffs, trade wars, and trade dynamics on a global basis. We will adapt and figure out what it means. It has been a long time since we were confronted with these challenges, and the stock market is translating it — it’s the worst since 2008.”
Rogasik reinforced Kensing’s acquisition strategy, ensuring the company can cover the sourcing of sunflowers by acquiring a plant in Latin America and one in Europe. He details that the company now owns four plants: two in Europe, one in the US, and one in Latin America.
Lamirello stresses that the cosmetics and personal care industry is a key driver of the US economy.Global markets crucial for success
The Personal Care Products Council (PCPC) is concerned about trade policies that could raise prices for personal care products and impact the industry’s growth and global competitiveness.
Francine Lamoriello, executive VP of Global Strategies at the PCPC, tells us how access to global markets is critical to the industry’s success and its ability to invest in US manufacturing and highly skilled jobs.
“We believe this can best be achieved by a combination of approaches that address the underlying factors leading to trade distortions and expanding export and investment opportunities that strengthen the ability of our members to compete around the world,” adds Lamoriello.
She stresses that the cosmetics and personal care products industry is a key driver of the US economy, with over US$68 billion in US manufacturing and 4.6 million jobs.
“Our industry directly contributes over US$300 billion to our nation’s GDP, and our products are essential to the daily lives of all US residents, with millions of consumers using about six to 12 products each day, including sunscreen, toothpaste, shampoo, moisturizer, and fragrance,” says Lamoriello.
Personal Care Insights previously reported that Europe’s personal care and beauty industry contributes €180 billion (US$204.8 billion) to the EU27 GDP and almost 3.2 million jobs.
“We maintain our support for balanced trade policy approaches that would create US jobs and strengthen critical global market opportunities for our member companies and continue to work diligently to inform the Administration and Congress of the impact of US trade policies on our industry, US investments, and consumers,” Lamoriello concludes.
