Packaging Container Price Surge Leaves Small Business Owners Distressed

The unstable situation in the Middle East is causing a sharp rise in the prices of plastic packaging containers, increasing the burden on small business owners operating restaurants and retail stores. With costs rising for both ingredients and packaging containers, operating businesses has become even more challenging.

The manager of a noodle shop near a university said that the price of packaging containers, which used to be 300 won each for takeout orders, has increased significantly since the Middle East crisis, creating a burden. They face a situation where they will have to buy new stock at higher prices once their current inventory runs out. The manager noted that while some businesses might raise food prices to offset the packaging cost increase, this would burden both customers and the restaurants themselves.

Wholesalers selling packaging containers and bags are also struggling, with prices increasing by about 10% in a week and the overall supply volume from factories shrinking. A wholesaler owner said they are only receiving three or four boxes of the packaging containers they ordered.

The import price of naphtha, the raw material for plastics and vinyl, has significantly increased since the Middle East crisis. Over 70% of naphtha imports are from the Middle East, and prices have risen from the mid-$600s per ton in early March to currently fluctuating above $900.

A professor of economics at Kangwon National University explained that price increases are unavoidable for the time being, as it will take time to restore related facilities even after the conflict ends.