- The Middle East conflict is causing economic tremors globally, impacting the cost of everyday items like children's stuffed toys due to their reliance on petroleum-derived synthetic fibres.
- Suppliers in China have already informed companies like Aleni Brands of a 10-15 per cent cost increase for materials such as polyester and acrylic, which are petrochemical-based.
- Beyond toys, petrochemicals from crude oil and natural gas are used in over 6,000 consumer products, including computer keyboards, lipstick, shoes, and medical supplies, meaning price rises could affect a vast array of goods.
- Manufacturers are facing elevated production costs, with some, like Rinseroo and Gentell, either pre-ordering large quantities or planning to increase prices for customers by 15 per cent or more.
- Experts warn that if oil prices remain above $90 per barrel for several months, cost pressures will accelerate throughout the supply chain, potentially leading to higher prices for shoppers by late summer or early 2027.
IN FULL
