Market Update: Merchants fear plastic bag shortage as Middle East war disrupts petrochemical supplies – Full Analysis

 

Fears of a plastic bag shortage are spreading among small business owners and consumers as the war in the Middle East disrupts supplies of petrochemical products, including naphtha, a key raw material for plastics. While the government maintains that there is no short-term supply issue, calls are growing for mid- to long-term measures.

 

Small business owners who rely on disposable goods, such as cafes and restaurants, are increasingly worried about rising costs.   

 


 

“After seeing news that plastic bag prices may rise, I bought and stockpiled 20,000 black and white plastic bags yesterday,” said a fish shop owner at Mangwon World Cup Market in Mapo District, western Seoul, on Monday. “That amount will last six months to a year, and I bought them in advance because I cannot run my business without plastic bags.”

 

“We sell low-priced coffee for 2,000 won ($1.32), and at this rate, plastic cup prices, which are currently around 100 won, could rise to 200 won,” said a cafe owner in Jongno District, central Seoul. “That would mean cup costs alone would account for about 10 percent of sales.”

 

They added, “I want to buy more before prices go up, but wholesalers are limiting supply, so even that is not possible.”

 

Delivery-focused businesses that rely heavily on plastic containers are also scrambling to secure supplies. Vroong, a delivery service platform, sent a notice to merchants on Monday warning that “due to supply chain disruptions caused by the war, only two weeks’ worth of plastic raw materials remain.” It advised, “Early shortages and price increases for containers, straws and spoons are expected, so we recommend securing inventory in advance.” 

 

“Packaging containers cost about 400 won each, but if that rises to 500 or 600 won, the burden will be huge,” said a restaurant owner in Yeongdeungpo District, western Seoul. “With delivery fees already at 4,000 to 5,000 won, there will be no profit left if we sell orders with a minimum price of 11,000 won.”

 

An employee organizes cups of takeout coffee in a cafe in Seoul on Dec. 18, 2025. [NEWS1]

 

Concerns are also rising in pharmacies. “Polyethylene prices have risen by more than 10 percent recently,” a packaging company owner said. “We have no choice but to raise prices for products such as cosmetic containers and pharmaceutical packaging.”

 

“I heard from a wholesale supplier that packaging prices will increase,” said a pharmacist who runs a large drugstore in Seodaemun District, western Seoul. “These are medicines, so we cannot simply use cheaper alternatives even if packaging costs rise, so I plan to purchase as much as possible in the next order.”

 

Fears of shortages have also spread to consumers. The concern is particularly acute in Korea, where garbage disposal relies on a mandatory pay-as-you-throw system that uses designated plastic bags, heightening anxiety about potential supply disruptions.

 

“Someone really bought all the garbage bags. Where can I buy them?” a social media user wrote. “I hate uncertainty, so I’m stocking up on sanitary products and daily necessities in advance,” another user wrote.

 

As concerns spread, the Seoul Metropolitan Government held an emergency economic response meeting on Monday and announced it would inspect the production and distribution of standard garbage bags. 

 

A merchant shows a message from Vroong, a delivery service platform, urging them to secure as many delivery containers as possible on March 23. [HAN CHAN-WOO]

 

“There is enough stockpile in the short term, so a supply shortage is unlikely,” a district official in Seoul said. “Not only our district, but others are also checking their inventory levels.”

 

The surge in naphtha prices is driving these fears. Naphtha, produced during crude oil refining, is used as a raw material for plastics, synthetic fibers and synthetic rubber. About 54 percent of Korea’s imported naphtha passes through the Strait of Hormuz, and supply concerns have grown as disruptions continue due to the Middle East conflict.

 

According to the Korea National Oil Corporation fuel price information system, the international price of naphtha rose from $56.9 per barrel in the first week of January to $129.7 per barrel last week, marking an increase of about 127.9 percent.

 

The weakening of the won has further amplified concerns. As Korea imports all of its naphtha, a drop in the value of the won pushes prices even higher. On Monday, the won closed at 1,517.3 per dollar, weakened by 16.7 won from the previous trading day.

 

“Major domestic petrochemical companies have already begun raising prices for plastic raw materials,” a plastic wholesale business owner said. “The burden will gradually pass on to wholesalers and retailers.”

 

A customer uses a dispoable plastic bag at a GS25 located in Seoul on July 14, 2022. [NEWS1]

 

“As the conflict continues, it may take a long time for supply chains, logistics and insurance infrastructure to recover,” said Kim Tae-hwang, a professor of international trade at Myongji University. “We need to prepare for prolonged disruptions in oil and related product supply chains.”

 

“Even if this is a supply chain issue, the damage will ultimately affect small business owners,” said Kim Sang-bong, a professor of economics at Hansung University. “The government should consider measures such as tax reductions and securing alternative materials.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY OH SAM-GWON, HAN CHAN-WOO [[email protected]]