Boxed In: The War Shock For D2C

Cost volatility is disrupting one of the most fundamental layers of the retail business: packaging

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For D2C startups, the impact of ongoing geopolitical conflicts is no longer confined to global headlines. It is now hitting the most fundamental layers of business operations.

The ongoing geopolitical conflicts have pushed up crude oil prices and tightened global supply chains, triggering a ripple effect across petrochemicals, logistics, and manufacturing inputs.

This macro shock is now filtering into the consumer internet economy, particularly for D2C brands that rely heavily on packaging and global supply networks.

As oil-linked derivatives become more expensive and supply chains grow more unpredictable, startups across categories, from beauty and personal care to food and homeware, are beginning to feel the pressure on both costs and margins.

Cost volatility is now showing up in one of the most fundamental layers of their business: packaging.

From sachets and pouches to bottles and containers, packaging sits at the intersection of petrochemicals, logistics, and manufacturing. While packaging has traditionally been a relatively stable cost component, founders say that assumption is breaking down.

“Laminate (used for food and beverage packaging) prices have jumped from around ₹200-220 per kg to ₹270-290 per kg in just the last two weeks,” said Mansi Baranwal, founder of Troovy. That kind of sharp increase in such a short span is extremely difficult to plan around, she added.

Materials such as polyethylene and polypropylene, widely used across flexible and rigid packaging. are directly linked to crude oil prices. As global conflicts disrupt supply chains and push up energy costs, these materials are becoming significantly more expensive.

“In beauty and personal care, conditions are severely strained, we’re seeing........

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