South Korean packaging manufacturer Yonwoo, known for its eco-friendly paper tubes and pouches used in cosmetics, has experienced an unexpected surge in demand due to the ongoing Iran war. The conflict has severely disrupted the supply of plastics essential for producing single-use packaging, driving prices to their highest levels in nearly four years. This shortage has led to a threefold increase in inquiries for paper-based packaging alternatives.
Kim Min-sang, a senior manager at Yonwoo’s parent company Kolmar Korea, noted that initial interest came primarily from companies prioritizing sustainability. However, if the plastic supply issues persist, demand for paper packaging is expected to rise further. Yonwoo supplies major clients such as France’s L’Oreal, with their paper tubes using only 20% of the plastic found in conventional packaging for products like sunscreen and lotions.
Across Asia, a region that accounts for nearly one-third of global plastic consumption and waste, these shifts toward environmentally friendly packaging are accelerating. Despite long-standing efforts by environmental groups, the disruption caused by the Iran conflict has hastened adoption of alternatives, even if temporarily.
Asia’s heavy dependence on Middle Eastern feedstock and its vast plastic consumption—China, Japan, South Korea, and Southeast Asia together consumed almost a third of the world’s plastic by 2022, a 900% increase since 1990—exacerbates the impact of supply disruptions. The region also contributes over one-third of plastic pollution due to inadequate waste management in lower-income Southeast Asian countries.
Japan, ranking second only to the United States in per capita plastic production and consumption a 2025 study by Beijing’s Tsinghua University published in Nature, is already facing shortages. Kensuke Takahashi, product manager at Marutake supermarket near Tokyo, expressed concern over potential unavailability of plastic trays and bags, which could affect product sales. Japanese manufacturers Mitsubishi Chemical and Sanipak have announced price hikes of approximately 30% for some plastic products in response to rising raw material costs.
Meanwhile, global efforts to address plastic pollution have stalled. Talks on a treaty to limit plastic production faltered last year after opposition from the United States and plastic-producing nations. This setback aligns with broader environmental policy rollbacks under former U.S. President Donald Trump, who dismissed climate change concerns and imposed trade tariffs that hindered companies like Taiwan’s Lastic, a maker of bamboo-based biodegradable materials.
Luke Anderson, senior development manager at Lastic, revealed that American airlines initially interested in replacing disposable plastic cups and cutlery lost interest following the tariffs. However, with plastic prices now climbing, some U.S. buyers have renewed inquiries, highlighting a silver lining amid the conflict’s challenges.
Companies across the region are adapting to the plastic shortage in various ways. Malaysia’s dairy producer Farm Fresh has temporarily switched to paper milk cartons due to disrupted plastic supplies. Conversely, South Korea’s Gaone International, which produces packaging for face masks, faces greater difficulties. Testing alternative materials is time-consuming, forcing the company to reduce daily production to 10-20% of its usual one million units. Sales manager Han Kyung-hun warned of up to eight-week delays for orders and anticipated revenue declines, expressing hope for a swift return to normalcy but cautioning that recovery could take several months even if the war ends immediately.
