Kimberly-Clark is but one of a number of consumer product companies being pressured by recent increases in the cost of raw materials such as pulp, recycled fiber, and resins, even as hygiene and cleaning products remain in demand despite the easing of coronavirus-related restrictions, reports Reuters.
Prices to consumers in Canada and the United States will rise by the mid-to-high single digits by late-June this year. And should rival Proctor & Gamble follow its lead, consumers will see higher prices on Pampers diapers and Charmin toilet paper, according to CTV News Canada.
But, it is not just an increase in the cost pf paper products and cleaning supplies. Global food prices are at the highest in more than six years, driven by a jump in the cost of everything from soybeans to palm oil, sugar, and wheat. And in the U.S., consumers on average paid 3.7 percent more for food in January than one year ago.
For example – J.M. Smucker was among the first to raise prices as commodity costs hit profits. The company hiked the price of its Jif peanut butter in August as peanut yields fell, and its competitors followed its lead, according to CNBC.
“In this case, and particularly in peanut butter, it was very clear that we were experiencing cost pressure and could demonstrate that to our trading partners and so forth,” CEO Mark Smucker told analysts in November.
