NCSU supply chain expert warns price of diapers, paper towels, other products on the rise

Proctor & Gamble and other manufacturers now face higher commodity costs for one of their main ingredients.

"The demand for toilet tissue, paper towels, napkins, the demand for all those things went through the roof, and the cost of those went up as well," explained Robert Handfield, an expert in supply chain management with the Poole College of Management at North Carolina State University.

Diapers, cereal and, yes, toilet paper are going to get more expensive

Handfield says the new issue impacting paper-based products, and ultimately consumers, is higher demand and cost of wood pulp.

"Especially, it’s been a demand for virgin pulp, which is from trees, as opposed to recycled cardboard," he said.

"More and more organizations are starting to look at recycled and biodegradable packaging," he said.

That is especially true in the booming e-commerce industry, which depends heavily upon paper and cardboard for shipping and delivering products to consumers.

Why is the cost of home-buying skyrocketing?

Handfield acknowledged that people may immediately link wood pulp demand with lumber costs. However, he said, they are separate concerns, although no less of a burden for consumers.

"The price of lumber has gone through the roof, and that has been primarily because of homebuilding and a huge demand for homes," he said.