Taiwan’s plastic packaging shortage sparks Costco purchase limits
Key takeaways
- Taiwan’s Formosa Petrochemical Corporation has declared force majeure, while Formosa Plastics has announced production cuts on key petrochemical products.
- Taiwanese consumers have been stockpiling plastic packaging products, prompting Costco to impose purchase limits on items.
- Costco’s purchase limits cover items such as food storage bags and plastic wraps, effective until April 2.
The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.
In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies.
Meanwhile, due to the disruptions, Taiwanese consumers have stockpiled plastic packaging products, driven by concerns over potential price hikes and shortages.
In an effort to manage demand, Costco Wholesale Taiwan has implemented purchase limits, which started on March 27. Ten types of packaging sold at Costco Taiwan, including food storage bags, garbage bags, plastic wrap, and zipper bags, will be restricted to one set per membership card.
“This rule is intended to ensure that all members can purchase these products, and it is not due to a shortage of supply,” states Costco Wholesale Taiwan.
Taiwan's Ministry of Environment encourages consumers to use reusable bags or second-hand bags.The current purchase limit period is until April 2, according to Costco’s website.
Government responses
To prevent panic buying, on March 31st, Taiwan’s Ministry of Economic Affairs stated that it had coordinated with multiple retail channels to stabilize supply in response to market and commercial demand for plastic packaging products.
The move aims to ensure a steady provision of essential goods and maintain market order.
The ministry also encourages market vendors and businesses to align with the Ministry of Environment’s plastic reduction policy. Last month, the ministry launched its shopping bag circulation platform, which promotes the reuse of shopping bags.
Additionally, the Ministry of Economic Affairs urges the public to use reusable packaging to reduce the need for single-use plastic products and contribute to environmental sustainability.
Meanwhile, the Ministry of Justice has established a “Price Inspection Task Force” for joint enforcement. The task force is conducting island-wide inspections of plastic bag manufacturers and distributors to prevent illegal stockpiling of plastic bags and packaging materials, as well as the deliberate delay of shipments.
