US-Iran War Impacts Plastic Supply, Unexpectedly Boosting Demand for Eco-Friendly Packaging in Asia

SEOUL/TOKYO (CNA) – The US-Iran War has severely impacted the plastic raw material supply chain, leading to a surge in demand for eco-friendly packaging as companies seek alternatives. This unexpected shift is exemplified by a threefold increase in inquiries for paper tubes and bags at Korean cosmetic packaging companies.

Reuters reported that the US-Iran War has disrupted oil and petrochemical raw material transportation, pushing plastic prices to a nearly four-year high.

Kim Min-sang, a senior manager at Kolmar Korea, the parent company of Korean cosmetic packaging firm Yonwoo, stated that inquiries for paper packaging materials have surged threefold. "Originally, only companies focused on sustainability were interested, but if the plastic shortage continues, demand is expected to increase further." Yonwoo is a supplier to major beauty brands like L'Oreal.

Kim Min-sang told Reuters that paper tube products used for sunscreen and lotion packaging are currently the most inquired-about items by beauty brands, as these materials use only 20% of the plastic found in traditional packaging.

Many of the world's largest plastic-consuming nations are located in Asia, which also suffers the most severe pollution. Due to the war, plastic reduction efforts, which environmental groups have promoted for decades, are rapidly being adopted, even if it may be a short-term phenomenon.

Asia not only heavily relies on plastic raw material imports from the Middle East but also consumes an astonishing amount. According to OECD data, China, Japan, South Korea, and Southeast Asia combined consumed nearly one-third of the world's plastic by 2022, a ninefold increase since 1990. More than one-third of the plastic waste entering the environment globally comes from low-income countries in Southeast Asia.

Japanese supermarkets have received notifications from wholesalers about potential shortages of plastic trays and bags.

Mitsubishi Chemical and Sanipak, Japanese manufacturers of plastic bags and cling film, announced that some products will see price increases of 30% in the coming weeks due to rising raw material costs caused by the war.

Luke Anderson, a senior development manager at Taiwan's Lastic, a company dedicated to producing biodegradable bamboo fiber products, noted that last year, a US airline considered using their bamboo fiber products to replace disposable plastic cups and cutlery. However, they withdrew after US President Trump announced significant tariff increases.

Anderson said that with rising plastic prices, several US buyers have re-inquired about quotes.

In reality, many companies are adapting to new alternative materials. Malaysian dairy company Farm Fresh stated that due to disrupted plastic supply, milk products have temporarily switched to carton packaging.

However, for other businesses, there is no quick solution. For example, Gaone International, a Korean manufacturer of facial mask packaging, noted that daily production has plummeted from 1 million units to 100,000-200,000 units because new materials are still in the testing phase. Orders now take up to eight weeks to complete, and revenue is expected to be affected. (Compiled by Chang Ming-hsuan) 1150415