Unilever Anticipates Further Price Hikes: Dove, Rexona, And Its Brands Face Higher Raw Material Costs

Unilever said it expects to implement new price increases during the second half of 2026 to offset rising raw material costs and protect profitability, after its sales growth during the second quarter was driven primarily by higher product volumes. The multinational company, which owns brands such as Dove, Rexona, Vaseline, Hellmann’s, Knorr, Sunsilk and TRESemmé, reported that underlying sales increased 5.8% between April and June 2026. Volume rose 5.5%, while prices increased by just 0.2%.

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The company explained that the low level of price growth was due to temporary factors, including promotions linked to the 2026 World Cup, a high comparison base in Personal Care, and actions taken since 2025 to address price gaps versus competitors in its Home Care business in Brazil.

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Following these promotions and commercial adjustments, Unilever expects pricing to once again become the main driver of sales during the second half of the year.

Why will Unilever raise prices in 2026?

The company is facing higher raw material costs, a pressure that has been particularly intense in its Home Care division. This business includes detergents, cleaning products and laundry care products, making it more exposed to fluctuations in the prices of chemicals, packaging and other inputs.

Unilever said that during the first half of the year it adopted a moderate pricing strategy to protect its competitiveness, keep its products affordable and stimulate volume growth. However, rising costs began to put pressure on its gross margin.

The company’s gross margin declined by 70 basis points during the first six months of 2026, reaching 46.8%. Unilever attributed the decline to raw material inflation, moderate price adjustments and promotions carried out as part of its World Cup campaigns.

The benefits generated by higher volumes and productivity measures were not enough to fully offset these pressures.

Unilever expects price growth to accelerate as adjustments linked to raw material costs are implemented across different markets. However, the company acknowledged that this strategy could generate some consumer sensitivity and moderate volume growth.

Which Unilever products could face higher prices?

Unilever did not specify which brands, product sizes or markets will be affected by the adjustments, nor did it disclose the percentage of the increases. However, it indicated that the greatest raw material pressure is concentrated in Home Care.

This division was also the company’s fastest-growing business during the second quarter. Underlying sales increased 9.1%, with volume growth of 8.6% and price growth of just 0.5%.

Performance was driven by detergents and laundry care products in markets such as India, Brazil and Indonesia. The company managed to increase its market share across all three categories within the segment, supported by priority brands such as Dirt is Good and Comfort.

During the first half of the year, Home Care generated revenue of €5.992 billion and an underlying operating margin of 15.8%, 30 basis points higher than a year earlier.

The company expects growth in this division to depend more heavily on pricing during the second half of the year. To reduce the potential impact on consumers, Unilever will seek to maintain different package sizes and price points.

World Cup promotions temporarily reduced prices

Price growth was also affected by promotions surrounding the 2026 World Cup. Unilever activated more than 35 brands across approximately 120 markets and worked with more than 50,000 content creators.

The strategy was concentrated in Personal Care, primarily around Dove and Rexona. The promotions helped boost sales volumes but caused prices in the division to decline 0.9% during the second quarter.

Underlying Personal Care sales increased 5.9%, while volume rose 6.8%. Unilever said its World Cup-related campaigns strengthened its deodorant and skin cleansing businesses.

The multinational company set up creator hubs under the House of Fresh concept in Mexico City, New York and Toronto. Unilever believes the exposure its brands received during the tournament will continue to generate commercial benefits even after the competition has ended.

Unilever anticipates slower volume growth

For full-year 2026, Unilever raised its outlook and now expects underlying sales to grow between 4% and 6%, with volume growth of around 3%. During the second half of the year, the company expects sales growth of between 4% and 5%, led by pricing. This implies a slowdown compared with the 5.5% volume growth recorded in the second quarter.

The company acknowledged that it is reasonable to expect volume growth to moderate as the price increases are implemented. Its strategy will seek to maintain a balance between pricing, market share and competitiveness to prevent consumers from switching to lower-priced products.

Unilever believes that the strength of brands such as Dove, Vaseline, Sunsilk, Rexona and Comfort will allow it to pass on some of the higher costs without significantly losing market share.

Its so-called Power Brands now account for 78% of revenue. During the second quarter, sales of these brands increased 6.9%, with volume growth of 6.8%. Fifteen of the company’s 30 priority brands achieved double-digit growth.

Despite pressure from raw material costs, Unilever maintained its expectation of delivering a moderate improvement in its underlying operating margin compared with the 20% recorded in 2025. During the first half of 2026, this indicator increased by 10 basis points to 20.3%.