Food vendors across Asia are dealing with higher costs for everyday plastic items such as bags, cups and containers, as ongoing energy market disruptions linked to the Middle East conflict continue to push up prices across petrochemical supply chains.
While the United States and Iran have reached an agreement to halt hostilities, market conditions remain unstable. Concerns over shipping routes through the Strait of Hormuz have continued to affect global oil flows, with knock-on effects for plastic production in Asia.
In Taipei, chicken vendor Li Yu-ping said the impact has been immediate. She reported that plastic bag prices have risen by nearly 60% since early June, while plastic trays are up by about one-third.
“We use them everywhere,” said Li, 52. “Our food containers are also plastic, all disposable.”
She said vendors are struggling to absorb the higher input costs without raising prices for customers. “All of this has become a cost for the vendors,” she added.
Across Asia, plastic packaging remains essential for small food businesses, particularly in street markets and informal retail. However, the sector is heavily exposed to oil price movements because key materials such as ethylene are produced from naphtha, a by-product of crude oil. Around 60% of Asia’s imported naphtha comes from Gulf suppliers.
Disruptions in the Strait of Hormuz have tightened supply and pushed up costs. Petrochemical producers in South Korea and Japan have reportedly reduced output in response, further limiting the availability of basic plastic goods.
In Bangkok, vegetable vendor Nikorn Sai-inthara said his operating costs have risen by around 30%.
“I rely on plastic bags for my work because I sell vegetables on the go to busy people and office workers,” said Nikorn, 60. He said he packages items in plastic bags secured with rubber bands.
“Ever since the fighting started in the Middle East, my profits have fallen, but I don’t dare raise prices for my customers,” he said.
Vendors across the region say there is little practical alternative to plastic packaging in daily operations.
“We have no choice. If you don’t give customers plastic bags, they complain,” said Chang Chiu-hsiang, a 78-year-old grocer in Taipei.
Some customers are beginning to switch to reusable bags, but adoption remains limited. “Some customers have started to use reusable bags,” Li said, though she noted most still rely on single-use plastics.
In Bangkok, food seller Somsak Jaidee said higher costs are unavoidable. “Everything is more expensive… I have to endure it,” said the 62-year-old, who sells rice porridge in plastic packaging.
“I can’t think of anything else that offers the same convenience for my customers as plastic bags.”
Upstream in the supply chain, petrochemical producers are also adjusting operations. Taiwanese firm Formosa Petrochemical has reduced utilisation rates at one of its ethylene production units, citing high feedstock costs and weaker demand from buyers unable to absorb higher prices.
“At this point, the situation is not entirely due to a lack of feedstock. The bigger issue now is that the feedstock has become extremely expensive,” said company president Lin Keh-yen.
In South Korea, retailers report delivery delays of more than a month for plastic bags, compared with around one week previously, alongside price increases of up to 30%. Other items, including garment covers and disposable cups, have also become more expensive.
Industry groups in South Korea and Indonesia say some supply pressure has been eased by shifting imports to alternative sources such as China and Africa, but prices remain elevated.
In the Philippines, manufacturers say they have absorbed part of the cost increases to stay competitive against imports.
“Our profits got squeezed. We could not simply raise prices as we would be swamped by imports,” said Steve Tavera of the Philippine Plastics Industry Association.
Industry players warn that while some price increases have so far been gradual, continued instability in energy markets could keep costs high for both producers and small vendors in the months ahead.
