Shortage of plastic packaging materials forces suspension of sales for various food products in Japan

Japanese media expect that, with the rising prices of plastic packaging materials, Japan will once again face a “price hike wave” for food this summer. Since the outbreak of conflict in Iran, Japan’s crude oil imports have plummeted, leading to tighter supplies of naphtha—which is processed from crude oil and used in the production of packaging materials—sparking widespread concerns in the food manufacturing industry. A gyoza factory in Kawagoe City, Saitama Prefecture, announced that, as of the 1st of this month, it would stop selling refrigerated gyoza in nearly 100 stores due to difficulties obtaining plastic trays for packaging and a steep surge in their prices. The factory stated that, going forward, it will mainly produce frozen gyoza in bags that do not require plastic trays. A sauce manufacturer in Hiroshima City said it would stop selling various sauces and seasonings due to a shortage of plastic packaging containers. In addition, several natto and bread manufacturers have raised prices for their products due to increased packaging material costs. A survey released at the end of April by the “Japanese Federation of Consumer Organizations and Life Industries,” which consists of major food manufacturers and retailers, showed that 44.1% of respondent companies have already been affected by shortages of plastic packaging materials and similar supplies, while 31.4% said they expect to be affected in the next three months. When asked about countermeasures, 72.5% of companies said they would increase prices, and 35.3% said they would consider discontinuing some products. Media expect that, as food manufacturers pass on packaging material costs to consumers, a large number of food items in Japan will become more expensive this summer.The previous large-scale wave of food price hikes in Japan occurred in 2023. Driven by sharp increases in raw material prices and the depreciation of the yen—which raised import costs—more than 32,000 types of food rose in price that year, the largest number in 30 years.