Unilever flags price hikes as Middle East tensions drive costs up
Unilever signals possible price increases from April 2026 as Middle East tensions push up raw material and logistics costs across all product lines
Unilever Thailand has issued a notice to its business partners warning of mounting cost pressures, as ongoing instability in the Middle East continues to push up raw material and logistics costs.
The company said the prolonged conflict, with no clear end in sight, is driving up production costs across all business segments, with the impact expected to become more visible from April 2026 onwards.
Costs surge as supply pressures mount
In a statement dated March 17, 2026, Aseem Puri, CEO of Unilever Thailand, said the company is facing increasing risks from rising raw material prices and sustained increases in logistics costs.
These pressures are directly affecting production costs across all product categories, while the timeline for any easing of the situation remains uncertain.
To manage the volatility, Unilever has accelerated production across all business units and increased safety stock levels during March 2026.
The company has advised retail partners to plan ahead by building inventory in advance, ahead of potential price adjustments expected in April.
Retail owners and managers have been encouraged to coordinate closely with sales representatives to optimise stock management, with the company offering continued support to ensure business continuity.
Despite the cost pressures, Unilever said it remains mindful of the impact on consumers and is preparing additional promotional campaigns and price discounts.
These measures aim to help ease the cost-of-living burden, even as geopolitical factors continue to drive up production costs.
