Take, for instance, ethoxydiglycol. This chemical sourced from places like (surprise!) China are in short supply in Europe. Without it, a lot of formulations for cosmetics cannot function properly. Ever wonder how UK celebrities maintain that year-round glow despite the onset of winter? Well, their beauty secrets may be unraveling real soon unless these supply chain issues are worked out:
The UK could be on the cusp of a cosmetics shortage as prices balloon for a vital chemical used in many eczema creams, fake tans and shampoos. A chemical called ethoxydiglycol has been described as the "unsung hero" of cosmetics. It is part of the formula that improves the way cosmetics are applied to the skin. Without it, many cosmetic products as we know them would be unusable.
Ethoxydiglycol is widely used in cosmetic products because it is soluble in both oil and water-based products, such as propylene glycol, water, vegetable oil and ethanol. The shortage, which is expected to hit UK and European cosmetics manufacturing in the next few weeks, has already seen a near ten-fold price hike.
While price hikes have become necessary in light of what's happening, they may rise yet further:
Ethoxydiglycol prices have increased from £12.10 ($16.50) to £103 per kg in recent weeks. Many suppliers are now completely out of stock. Minimum order quantities set by many suppliers have also increased from 24kg to 1,000kg. This means that the minimum order to purchase Ethoxydigylcol is £103,000, which will halt production for many smaller businesses who cannot afford to purchase in those quantities.
In keeping with the concept of economies of scale, it's often the little guys who get hurt the most.
