Goldman Sachs asserts that consumer staples stocks are likely to face a disproportionate impact from increasing oil prices. “Within our coverage, we identify the greatest vulnerability to our CY26 EPS projections for PRMB and COTY stemming from escalating oil-related input costs, succeeded by other beauty and HPC firms due to a more fundamental dependence on oil and its derivatives (e.g., petrochemicals/resins) in their manufacturing processes,” analyst Bonnie Herzog noted.

In contrast, nicotine companies are expected to maintain a degree of insulation from increasing oil shocks, she stated. “Elsewhere, other non-alcoholic beverage companies (especially carbonated soft drinks) exhibit a moderate risk due to their reliance on PET packaging,” Herzog continued.

“Lastly, we observe that nicotine companies exhibit the least risk, while various alcoholic beverage firms also appear relatively insulated from this pressure due to a higher proportion of glass bottle packaging.”