P&G Diapers Price Increase
Procter & Gamble announced earlier this month that it was in the process of raising Pampers’ prices in North America by 4%. P&G also began notifying retailers that it would increase the average prices of Bounty, Charmin, and Puffs by 5%. It remains to be seen if those increases will be absorbed by the retailers or passed along to the consumers, but we believe the prices will go up across the board.
According to CNBC, P&G is raising prices because commodity and transportation cost pressures are intensifying. Shipping costs have spiked as demand for goods accelerates and the United States faces a shortage of truck drivers. The hikes to Bounty and Charmin will go into effect in late October, and Puffs will become more expensive beginning early next year.
P&G said the two factors were outsized components in the baby, fabric, and home care cost structure.
Pulp, which is made from trees, is the primary ingredient in Bounty, Puffs and Charmin, and a major material in Pampers.
Since 2016, market prices for hardwood pulp have risen 60% and 20% for softwood. P&G sources both types from the United States and Canada and uses them to make tissue papers and diapers.
Growing global demand, particularly in China, and tight supply have pushed up prices, said Arnaud Franco, a senior analyst at the Pulp and Paper Products Council.
What this means to consumers is that the package units will change and we will see fewer diapers per package and fewer sheets/roll for the paper products. Be sure to follow SuperSafeway for the best deals on Pampers and P&G Products in light of this news!
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