Henkel CEO Carsten Knobel stated to RTL and ntv that he does not rule out raising prices for consumers next year. This potential increase is primarily attributed to rising material costs, which are currently running in the high single digits. These surging material costs represent an additional burden for the company estimated between €400 million and €500 million.
To combat these financial pressures, Henkel is taking several measures, including renegotiating pricing with suppliers, adjusting prices across the market, and pursuing further cost-saving initiatives.
The company noted that price adjustments have already been implemented within the industrial sector; for instance, the adhesive division had to implement price increases with its customers as early as the first quarter.
However, the situation is more complex in the consumer business due to the financial strain being experienced by many consumers. Knobel highlighted that this group stands under considerable pressure regarding their income. Consequently, Henkel plans to approach the consumer market using selective price adjustments that are strongly linked to new innovations. These selective hikes are presented as necessary when the company launches new market innovations.
As for the future, Knobel cautioned that the economic landscape is highly volatile and changes weekly, making it impossible to provide a definitive forecast right now. Despite this uncertainty, he warned that if the cost pressure persists, Henkel will be forced to implement consumer price increases by 2026.