Consumer goods producers warn of possible price increases in 2027 — Korea Herald

The world’s largest food and consumer goods manufacturers, including Coca-Cola, Procter & Gamble, Nestlé and Reckitt, have warned of possible further price increases in 2027. According to the Korea Herald, the companies are trying to offset higher energy, raw material and freight costs, while shoppers are reluctant to spend more on products.

Costs put pressure on manufacturers

The publication links the rising costs to the US war against Iran. Higher prices for everyday goods could increase concerns that inflation will persist next year. At the same time, manufacturers are already facing weak sales after the pandemic, as consumers turn away from increasingly expensive branded packaged products.

Coca-Cola CEO Enrique Braun said pressure on consumers could continue in 2027. According to him, the company is experiencing significant cost pressure, driven primarily by higher logistics and transportation costs. Coca-Cola raised its annual profit forecast.

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A limit for shoppers

Procter & Gamble Chief Financial Officer Andre Schulten said the company had increased the expected negative impact of higher raw material, energy and transportation prices on profit to $1.4 billion, from $1 billion. He noted that under such pressure, the industry as a whole raises prices, as there is no other way to offset costs.

At the same time, higher prices threaten customer losses. Nestlé Chief Financial Officer Anna Manz said sales volumes may temporarily decline after price increases while consumers adjust. Reckitt CEO Chris Licht also said companies have to decide what share of costs to pass on to shoppers and what share to offset through higher promotional spending. Reckitt lost about 5% of its share value on Tuesday after lowering its annual revenue forecast.