The manufacture of cosmetic products in Spain will cost more in 2023. The latest data provided by the National Institute of Statistics put the industrial price index at 119.56, which is 2.8% higher than in the same period last year. Inflation and the increase in the cost of raw materials used in the cosmetics, fragrance and perfumery industries are the main reasons for this increase. This increase is even more pronounced and shocking when compared to November 2020, when the increase was more than 12%.
The manufacture of essential oils has also been affected by this indicator, although at lower levels than in the previous year. Despite having increased its production cost, the increase has not reached 1% when compared with the same period of the previous year. However, if we compare it with the values for 2020, the increase is more notorious and exceeds 3.50%.
In the pre-pandemic context, cosmetics manufacturing in Spain already faced economic challenges that impacted on its costs. According to data collected before 2020, the Industrial Price Index (IPI) for the cosmetics sector showed an upward trend. In 2019, for example, the IPI was at a considerably lower level of around 112.45.