Editor’s Note
**Editor’s Note:** This article examines how rising material costs and supply chain disruptions—driven by geopolitical tensions and crude oil volatility—are affecting OEM product development in the cosmetics industry, prompting a growing call for reassessment of container and packaging material strategies.
Against the backdrop of recent Middle East tensions and crude oil price fluctuations, the cosmetics industry is beginning to see impacts on the prices and delivery times of containers, packaging materials, and some raw materials. In particular, materials using PE, PP, and PET-based resins—such as bottles, tubes, caps, pumps, pouches, films, and inner bags—are highly susceptible to naphtha and crude oil prices. Cases requiring price revisions, shortened quotation validity periods, and delivery confirmation are increasing. In response to these changes in the procurement environment, Takeuchi Pharmaceutical Co., Ltd. is strengthening its proposal system for OEM product development, primarily for cosmetics, including the selection of containers and packaging materials, specification design, and review of procurement routes. By designing with price, delivery, and stable supply in mind from the initial stages of commercialization, the company supports brand launches and existing product renewals.
In OEM product development, not only the product formulation but also the selection of containers and packaging materials significantly impacts price, delivery, and continuous production. Particularly for new brand launches or existing product renewals, there is a growing number of inquiries such as:
“Could the price of containers and packaging materials increase upon reorder?”
“Can we switch to containers or specifications that reduce costs?”
Additionally, consultations are increasing that look beyond simply “can it be made” to whether “this specification can be stably continued.” Questions include whether to place orders early and secure materials to avoid delivery delays, or whether to keep the initial lot small for test sales and adjust specifications upon reorder. As market conditions for raw materials and supplies continue to fluctuate, the importance of product design that considers not only the launch but also ongoing sales is growing in OEM development.
In Takeuchi Pharmaceutical’s OEM business, a system is in place to check the impact range of raw materials, containers, and packaging materials for each project, and to confirm prices, delivery times, and inventory status early. For containers, pumps, pouches, and special materials that tend to have longer lead times, inventory and delivery are checked promptly, and switching to standard containers or alternative materials is proposed as needed. Furthermore, procurement risks are diversified by checking with multiple partner factories, material manufacturers, and suppliers. In addition to domestic procurement, overseas procurement of containers and packaging materials is also considered as an option, with proposals taking into account not only price but also delivery, quality, lot sizes, transportation lead times, and exchange rate impacts. While overly specialized specifications can lead to visual differentiation, they are also more susceptible to price fluctuations and delivery delays. Takeuchi Pharmaceutical proposes specifications and materials that maintain the brand’s world view while being easy to produce continuously, leading to commercialization that balances cost, delivery, and quality.
