Japan Food Prices Set to Rise as War Hits Plastic Packaging Cost

Food and drink prices in Japan are set to increase as early as this summer due to a war-driven shortage of a critical ingredient used in plastic packaging, according to a report by corporate research firm Teikoku Databank Ltd.

Prolonged disruption to energy flows via the Strait of Hormuz has cut the availability of naphtha, prompting suppliers of polypropylene and polyethylene packaging derived from the petrochemical feedstock to demand higher prices with immediate effect. Small and mid-sized food manufacturers are beginning to feel the impact, the report said.