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Japan’s Naphtha Squeeze Forces Packaging Cuts and Price Hikes

Disruption at the Strait of Hormuz has pushed up input costs across packaging and plastics.

Overview

  • Major brands are cutting packaging and switching materials as ink and plastic supplies tighten, with Calbee moving to black-and-white bags and Lawson using paper lids for hot coffee.
  • The squeeze is already limiting what shoppers can buy, as Gyoza No Manshu halted refrigerated dumplings in the Kanto region.
  • Companies say they will pass on higher costs to consumers, with Mizkan planning up to 20% price hikes for natto and Takanofoods raising prices by 15%.
  • Official indicators point to a sharp supply shock, with Middle East volatile-oil imports to Japan down 36.9% and domestic naphtha prices about 80% higher than in February.
  • Industry groups report solvent demand surging and warn of hoarding, and analysts urge targeted support for small suppliers even as the government seeks to diversify sources.