Japan food sector grapples with container shortage amid naphtha disruption

Japan's food sector is experiencing severe supply chain disruptions as naphtha costs have surged dramatically due to the Iran war's impact on energy prices. Naphtha, the primary feedstock for plastic production from oil refineries, has become increasingly expensive. Production capacity in the plastic container and packaging sector has fallen by approximately 20%.

Small and medium-sized food manufacturers are struggling to source plastic containers at affordable prices. Some factories have been forced to seek alternative packaging materials, but this has driven costs even higher. Japan's food export business faces risks as packaging costs eat into margins and make products less competitive internationally.

While Japan's largest food companies are somewhat insulated by long-term supply contracts, smaller enterprises face significant financial pressure. Industry representatives are calling for government support to increase container production capacity. This crisis underscores how heavily Japan's economy depends on stable energy supplies from the Middle East.