Japan’s F&B packaging sector struggles with cost and shortages amid Middle East conflict
Key takeaways
- Japan’s F&B companies are facing raw material shortages and rising packaging costs due to supply disruptions linked to the geopolitical tension in the Middle East.
- The Strait of Hormuz disruptions have caused a rise in naphtha prices in Asia, driving up the cost of plastic packaging for Japanese F&B products.
- Calbee has temporarily switched to black and white packaging for 14 products, while Nissin York and Pasco Shikishima are raising prices for certain products.
F&B companies in Japan are facing shortages of materials used in manufacturing plastic packaging due to supply disruptions linked to the US-Iran war. This has led to changes in packaging designs and rising costs for products.
The country’s snack giant Calbee has announced that it will temporarily switch to black and white packaging for certain products due to the supply instability of colored ink.
A total of 14 Calbee products, including Potato Chips, Kappa Ebisen, and Frugra, will begin using the updated packaging in stores starting the week of May 25.
“This measure is intended to help maintain a stable supply of products. Calbee will continue to respond flexibly and promptly to changes in its operating environment, including geopolitical risks, and remains committed to maintaining a stable supply of safe, high‑quality products,” says the company.
The packaging from Calbee is temporarily moving away from bright colors.The company states that the change will not affect product quality.
Higher prices in summer
The prolonged blockade of the Strait of Hormuz has led to a sharp increase in the price of naphtha in Asia, driving up the price of Japanese F&B products using plastic packaging.
Earlier this month, Pasco Shikishima Corporation, a Japanese manufacturer and distributor of baking products, announced a revision of prices for certain bread and confectionery items, effective July 1.
The company explains that the rising prices for packaging material, along with increases in other areas, such as logistics costs and labor costs, have made maintaining prices while preserving the same level of quality a difficult challenge.
Nissin York, a Japanese dairy and beverage manufacturer and a subsidiary of Nissin Foods Group, has also announced this week that the company will revise the prices of certain beverages from July 1.
“Due to the recent global situation, the cost of packaging materials used in our products has increased significantly. This cost has exceeded the range that can be absorbed through our own efforts, and as a result, we have no choice but to revise our prices,” Nissin York states.
