Shiseido Co. is looking at plant-based substitutes and a broader supplier network after Middle East conflict disrupted the global skincare and cosmetics supply chain, the company said on Tuesday. [1, 2]
The Japanese cosmetics maker warned that shortages of petroleum-derived naphtha could affect ingredients used in products such as moisturizers and makeup. [1, 2]
Chief executive Kentaro Fujiwara said Shiseido is trying to keep operations on track while preparing for a severe disruption. “We are already optimising our operations while assuming a worst-case scenario,” he said. [2]
The company also said the supply pressure could cut ¥5 billion from fiscal-year core operating profit. That would come after Shiseido reported first-quarter core operating profit of ¥13 billion, beating the average analyst estimate of ¥10.4 billion. [2]
Shiseido said it is not relying on one fix. It is broadening its supplier base and studying plant-derived inputs to reduce exposure to oil-based materials. [1, 2]
Separately, the company said it plans to close its Hsinchu plant in Taiwan in the second half of 2027. Shiseido said the shutdown should save ¥1 billion a year in fixed costs. [2]
