SEOUL/TOKYO, April 15 (Reuters) – The ongoing conflict in Iran has inadvertently boosted demand for eco-friendly packaging solutions, such as the paper tubes and pouches offered by South Korea’s Yonwoo, which specializes in cosmetics packaging. This rise in interest comes as plastic prices soar to nearly four-year highs due to supply disruptions of essential raw materials like oil and petrochemicals. Kim Min-sang, a senior manager at Kolmar Korea—Yonwoo’s parent company—reported a threefold increase in inquiries for paper alternatives. ‘Initially, the interest was primarily from sustainability-focused companies, but prolonged issues with plastics could further drive demand,’ he noted. Major companies, including L’Oreal from France, are now exploring paper tubes that utilize only 20% of the plastic required for conventional packaging. As Asia grapples with its heavy reliance on Middle Eastern feedstock and contributes significantly to global plastic waste, environmental advocates’ long-sought changes are beginning to take shape, albeit possibly as a temporary shift. Japan exemplifies the situation, being one of the top plastic consumers globally. Wholesalers are fearing shortages of essential plastic products, with Marutake supermarket’s Kensuke Takahashi expressing deep concerns over product availability. Additionally, major manufacturers like Mitsubishi Chemical and Sanipak are preparing to raise prices by approximately 30% due to increasing raw material costs. Meanwhile, efforts for a global treaty to combat plastic pollution have stalled, particularly after pushback from the U.S. and other plastic producers against European Union proposals. As prices rise, some companies are looking at new materials, although adapting takes time. For instance, Malaysia’s Farm Fresh has temporarily moved to paper milk cartons, while South Korea’s Gaone International has reduced production significantly while searching for alternative suppliers. They anticipate delays in order fulfillment and a consequent dip in revenue. ‘I hope for a swift return to normalcy,’ shared Gaone’s sales team manager, Han Kyung-hun, but acknowledged that recovery could take months, even if the conflict concludes soon.
