Plastic bag crisis deepens in Japan

The shortage of plastic and naphtha supply in Japan has extended from the food sector to municipal waste. Polyethylene production has sharply declined, and supermarkets have started to implement quotas...

The squeeze in plastic consumption and raw material supply in Japan has started to affect even the most ordinary areas of daily life. Price increases and supply problems are particularly felt in the food sector, with a narrowed supply across a wide range of products from shopping bags to garbage bags.

About one-third of the annual plastic consumption exceeding 8 million tons is made up by the food sector. Since a large part of the country's crude oil needs is met from the Middle East, naphtha is used not only in plastic production but also as a basic input in the production of printing ink, adhesives, and medical supplies.

Sharp decline in polyethylene production

According to data from the Japan Petrochemical Industry Association, polyethylene production used in shopping and garbage bags decreased by 62% in March compared to the same period last year. Similar declines were observed in other types of plastics as well.

Prime Minister Sanae Takaichi's government is under intense pressure due to this situation. While government officials argue that what is happening is more of a temporary logistical bottleneck than a crisis, industry representatives and experts say the situation could worsen throughout June.

Public opinion polls also show that one of the biggest concerns of the public is this raw material shortage. In the country where plastic bags have been charged since 2020, packaging products with multiple plastic layers is still a common consumption habit.

Effects extending from supermarkets to bakeries

A supermarket management in Kawasaki instructed its employees not to put fruits and vegetables in separate plastic bags due to price increases and supply shortages. It is also reported that small plastic trays used for food products cannot be supplied.

A bakery near Tokyo posted notices stating that the war in the Middle East has made naphtha supply difficult and informed customers that plastic bags used for baguette bread have run out. There is also a serious supply shortage of plastic gloves used in food production.

Consumers who are sensitive about hygiene are reluctant to reuse bags that come into direct contact with food, making the process more difficult. Therefore, some businesses have started to develop alternative methods by offering free treats and extra portions to customers who bring their own plates or containers.

Garbage collection system also affected

The municipal garbage collection system, where household waste is strictly separated with special plastic bags of different colors, has also been affected by the crisis. Following panic stocking of bags by citizens, supermarkets introduced sales quotas per person.

Some municipalities have temporarily allowed garbage to be disposed of with unofficial bags. Thus, the pressure caused by the supply shortage has been felt not only on store shelves but also in municipal services.

Pressure also in South Korea and Taiwan

Similar problems are seen in other East Asian countries that meet their oil and naphtha needs from the Middle East. In the capital Seoul, sales of plastic garbage bags increased fivefold in March. After the surge in demand, sales restrictions were implemented.

South Korea's Minister of Energy and Environment, Kim Sung-whan, stated that there is no cause for concern regarding supply. However, the market activity showed that supply pressure on plastic products could spread in the region.

In Taiwan, one of the regions with the highest per capita plastic bag consumption in the world, wholesale plastic prices have risen by up to 40% this year. The Taiwanese government, which imports 70% of its crude oil from the Middle East, called for calm among the public and increased inspections against hoarding.