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Unilever confirmed this Thursday (30) that it will increase the prices of its products to absorb the cost impact that rose between 750 million and 900 million euros due to the war in Iran. The manufacturer of Dove, Axe, and Dermalogica, valued at over US$ 120 billion, foresees frequent increases in small doses throughout the second half, especially in home care. Despite the pressure, the company maintained its sales and profit margin forecast for 2026.
Unilever has just confirmed what the consumer feared: the prices of products that are part of the daily life of billions of people worldwide will rise. The manufacturer of Dove soap, Axe deodorant, and dozens of other brands present in practically all supermarkets on the planet announced that it will pass on to the consumer the additional costs caused by the war involving the United States, Israel, and Iran, which raised commodity prices and caused disruptions in the supply chain. The total cost inflation expected for the year reaches 900 million euros.
The company’s financial chief, Srinivas Phatak, was direct: “It may not be possible to cover it just with cost actions, so we will adopt pricing.” The statement confirms that Unilever has exhausted internal cost reduction alternatives and that passing it on to the final consumer is inevitable. The increases will be “frequent, but in small doses,” according to Phatak, and will take effect mainly in the second half of 2026, focusing on selected markets and categories, especially home care.
The impact of the war in Iran on Unilever’s costs
According to information released by the CNN Brazil portal, the war involving the USA, Israel, and Iran created a chain of economic consequences that directly affects consumer goods companies like Unilever. The increase in commodity prices used in the manufacture of soaps, deodorants, cleaning products, and processed foods raised the company’s industrial costs between 750 million and 900 million euros, an amount that was 350 to 500 million euros above what the company expected at the beginning of the year.
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Supply chain disruptions worsen the scenario. Maritime routes passing through the Strait of Hormuz, through which a significant part of the world’s oil transits, have undergone changes that increased logistics and insurance costs. For a company that operates in dozens of countries and moves millions of tons of products per year, each increase in freight and raw material prices multiplies on a scale that pressures margins and requires passing on to the consumer.
What will become more expensive and when the consumer will feel it
The price increases will be calibrated by category and market. Unilever indicated that home care, a segment that includes cleaning products and detergents, will be the most affected, because they use petroleum derivatives and vegetable oils whose international prices have soared with the war. Other categories, such as personal hygiene and food, should also undergo adjustments, but to a lesser extent.
The schedule foresees that the increases will take effect mainly in the second half of 2026. In practice, the Brazilian consumer who buys Dove, Axe, Omo, Comfort, or Hellmann’s may notice higher prices on the shelves between July and December, although Unilever promises that the adjustments will be gradual and competitive. The expression “small doses” used by Phatak suggests that the company wants to avoid the shock of a single significant increase that drives away the consumer.
The performance that allows Unilever to pass on costs
Unilever feels comfortable raising prices because its first-quarter performance was better than expected. The company reported underlying sales growth of 3.8%, above the 3.6% forecast by analysts, driven by its so-called “power brands,” the company’s highest-revenue brands. Dove, Axe, and Dermalogica led with 5% underlying sales growth, including a 4% increase in volume.
Maintaining the sales and profit margin forecast for 2026 indicates that Unilever believes it will be able to absorb some of the costs and pass on the rest without losing market share. For a company valued at over US$120 billion, the ability to raise prices without losing consumers is a test of brand strength that few consumer goods companies can face without consequences.
What other consumer goods companies are facing
Unilever is not alone. Consumer goods companies are facing one of the most challenging cost environments in recent years, with rising commodities, increased logistics costs, and economic uncertainty that makes planning difficult. Competitors like Procter & Gamble, Nestlé, and Henkel face similar pressures and are also evaluating passing costs on to the final consumer.
The global scenario is one of cost inflation that starts with raw materials and spreads throughout the entire production chain. When oil prices rise due to a war in the Middle East, the price of plastic packaging goes up, shipping costs go up, energy in factories goes up, and every additional cent is multiplied by billions of units produced. For the consumer, the result is that the supermarket cart becomes more expensive without the quality or quantity of products having changed.
What Brazilian consumers can do in the face of price increases
For the Brazilian consumer, Unilever‘s increases add to domestic inflation that is already pressuring budgets with rising food and fuel costs. The practical recommendation is to compare prices between brands, take advantage of promotions before adjustments reach the shelves, and consider alternatives from supermarket private brands, which often offer similar quality products at lower prices.
Unilever promises that the increases will be competitive, meaning aligned with what competitors are also practicing. But history shows that frequent small adjustments can result in a significant cumulative increase over months, and consumers who do not track price evolution may not realize they are paying significantly more for the same product they bought before the war in Iran altered global costs.
Have you already noticed an increase in the prices of Unilever products at the supermarket, or do you think the adjustments haven’t arrived yet? Tell us in the comments if you switch brands when prices go up or if you remain loyal to Dove, Axe, and Omo regardless of the value.
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