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kathywalton

Global Supply Chain & Effect on Skincare Packaging

Updated: Oct 4, 2022


 

If you haven't noticed, the COVID-19 pandemic has affected every facet of business today. Take a loop around your supermarket, you will notice some of your popular brands missing from the shelves. One of the main reasons for this, two years post COVID-19 shutdown, is the lingering effects of global supply chain issues. These effects have even wreaked havoc on the skincare industry, specifically the packaging of skincare formulations.



While Inspira Skin's medical grade skincare ingredients are sourced and produced in the United States, the same cannot be said for most if not all skincare packaging. The pandemic has exposed the negative effects of depending on manufacturing overseas. With only 8% of products manufactured in the United States, the demand for products manufactured overseas has increased tremendously.

The fragility of the United States' dependence on the supply chain was exposed starting in the fall of 2019, and we are still feeling its effects. During the pandemic, factories were closed for months, orders increased and created huge backlogs. Once factories opened, there was a shortage of manpower while production slowly tried to ramp up. Factories tried to meet demands but were also facing shortages of raw material, plastics, and supplies. They have been trying effortlessly to meet high demands which put unforeseen stress on the freight forwarders who ship the goods. This high demand with lack of supplies has led to a volatile environment. Unfortunately, delays did not stop there. Once the products were placed on the ships, they have been unable to get to the ports based on traffic jams at the ports. Even though products were on the ships, there is a lack of workers working the ports to get products off cargo ships.

How has global supply chain issues affected skincare packaging?
  • There is a shortage of packaging materials

  • Due to high demand and a shortage of supplies, packaging costs have skyrocketed

  • Packaging from Asia and overseas has more than tripled in cost

  • Freight costs have gone up a minimum of 30%

  • Packaging that once took 2-3 weeks are now taking 6-9 months to get to the United States

Skincare practitioners who are more focused on packaging versus quality of the formulations and ingredients are missing the mark! Forecasts predict global supply chain issues won't resolve until at least 2024. Considerations must be made when it comes to packaging your skincare brand. Some solutions include utilizing locally sourced, readily available and affordable skincare packaging. Our medical grade skincare formulations' quality will overcome any skincare packaging concerns that you or your clients may have. Studies have shown increased consumer interest in healthy looking skin translates into a higher demand for skincare products that provide multiple benefits and RESULTS. Keep in mind skincare patients are willing to pay for transformative outcomes but will not stay loyal to fancy packaging with subpar results. Inspira stands behind their transformative, medical grade skincare formulations which consists of 99% pure, highly concentrated active ingredients. Packaging, while important, is the least of your patients' skincare concern. Packaging should be viewed as "usable and disposable"; whereas more concentration should be on your skincare brand answering consumer interest in healthy skin coupled with skincare results.

Inspira Skin has been proactive in this turbulent manufacturing environment by increasing inventory of our standard packaging. We are doing everything to keep cost down and alleviate long delays by utilizing this packaging. We pride ourselves as being a transformative medical grade skincare formulation company first. Our main objective is to provide the highest quality skincare formulations and help you navigate through the supply chain issues in the most economic way possible. For those who are still interested in advanced skincare packaging, Inspira has the capability of providing but please be advised of additional delays, costs, and extended production timeframes.

If you have any questions please contact kathy.walton@inspiraskin.com. If interested in private labeling your own medical grade skincare line, click on link to "Skincare Line Consultation" below.

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