Japan faces plastic supply shortages as naphtha squeeze spreads

Japan is seeing shortages of plastic bags, trays and food-service gloves as a naphtha supply squeeze linked to the Middle East crisis spreads through retail and food businesses. The disruption is being felt in supermarkets, takeaways and bakeries, with some outlets already changing how they package goods for customers. Industry data and business accounts suggest the pressure is widening rather than easing.

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The immediate problem centres on naphtha, a key petrochemical feedstock extracted from crude oil. The Middle East is Japan's main source of crude oil, and the resulting squeeze is affecting the supply of materials used to make plastics, adhesives, printing ink and some medical supplies. Data from the Japan Petrochemical Industry Association showed production of polyethylene, which is used in shopping and garbage bags, was down 62% in March compared with 2025.

Large drops were also recorded in the manufacture of other plastics. The shortages are already changing day-to-day operations in parts of the food sector, which accounts for nearly one-third of Japan's annual plastic use of more than 8m tonnes. Some businesses have begun offering perks to customers who bring their own bags, plates or containers.

At a supermarket in a suburb of Kawasaki, a manager said staff had been asked to avoid using the small plastic bags normally given to fruit and vegetables because prices were up and supply was down. A bakery nearby was also reported to be adjusting to the lack of plastic trays. The issue matters because it is not limited to one product category.

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Plastic packaging is deeply embedded in Japan's retail and food-service culture, even after retailers were required to charge for plastic shopping bags from 2020. That means a shortage of feedstock can quickly affect a wide range of consumer goods and business practices. It also adds another layer of pressure to companies already dealing with higher costs and tighter supplies.

The government has said the problem is a supply bottleneck rather than a shortage, but industry leaders and commentators have disputed that assessment. Prime minister Sanae Takaichi's government is facing mounting pressure over the disruption, which is also affecting other sectors. Opinion polls cited in the reporting suggest the public sees the issue as one of the most pressing worries, underlining the political sensitivity of the supply problem.

The wider background is Japan's dependence on imported crude oil from the Middle East and the role that dependence plays in petrochemical production. Naphtha is a basic input for a broad range of products, so any disruption in crude supply can ripple through manufacturing and retail. Industry figures say the situation is likely to worsen throughout June, but it remains unclear how quickly supply can recover or whether the government will take further steps to ease the pressure.

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