The ongoing U.S.-Israeli war against Iran has sent global oil prices soaring to nearly $100 per barrel, driving up plastic costs and accelerating a shift toward paper-based packaging across Asia.
Companies in the region are facing supply disruptions and sharp price hikes for plastic products. Japanese manufacturers have warned of potential shortages of plastic trays and bags, prompting retailers to explore alternatives urgently.
Rising Costs Force Industry Shift
In Japan, firms like Mitsubishi Chemical and Sanipak are planning to raise prices by about 30% for some plastic items due to higher raw material costs. A product manager at Marutake supermarket in Saitama expressed deep concern, stating uncertainty over how to sell products if plastic trays become unavailable.
Malaysia’s dairy producer Farm Fresh has temporarily switched to paper-based milk cartons in response to plastic supply issues. In South Korea, Kolmar Korea – which supplies packaging for brands like L’Oreal – is receiving increased inquiries for paper tubes that use only 20% of the plastic found in traditional packaging.
Environmental Concerns Amplify Change
Asia’s plastic consumption has grown dramatically, rising from 17 million tonnes in 1990 to 152 million tonnes in 2022 across China, Japan, South Korea, and Southeast Asia. The region accounts for more than one-third of global plastic waste leaking into the environment, largely due to inadequate waste management in lower-income areas.
Japan ranks second globally in per capita plastic production and consumption. The current crisis is forcing companies to reconsider long-term sustainable practices, even if some changes prove temporary.
Analysts note that while the switch offers a “green edge,” questions remain about whether paper alternatives can fully replace plastics in scale and cost. The conflict has disrupted petrochemical supplies, making paper options more attractive in the short term for cosmetics, food, and consumer goods packaging.