Cosmetics in Ukraine become more expensive by 50% due to the implementation of EU standards
Prices for Ukrainian cosmetics may rise by 20-50% due to the harmonisation of legislation with European standards. This is reported by Forbes Ukraine with reference to industry experts.
Mykola Romaniok, founder of Archimed, a consulting company that works with foreign companies in the cosmetics industry, said that the new requirements for the production of cosmetics, which will come into effect in August 2024, will lead to a significant increase in business costs. This will lead to an increase in product prices by 20-50%.
Svitlana Dikhtyarenko, co-founder of Livesta, also noted that the new rules require cosmetic manufacturers to review product composition, change packaging, upgrade equipment and obtain certification. This all requires significant investment.
According to the Fama analytical agency, there are 1159 registered cosmetics manufacturers in Ukraine, which paid UAH 1.8 billion in taxes to the state budget in 2023. However, harmonisation with European standards will be a major challenge for these companies.
Yevheniia Lysenko, co-founder of the Crumb brand, noted that the transition to the new standards could cost manufacturers between $7,000 and $10,000, which includes laboratory tests, registration, and legal advice. At the same time, rising prices for components will also push up the cost of the final product.
