Japan Faces Naphtha Shortages from Strait of Hormuz Disruptions, Impacting Food Packaging Costs by 2026

Food and drink prices in Japan are set to increase as early as summer 2026 due to war-related disruptions to energy flows through the Strait of Hormuz squeezing naphtha supply. Prolonged disruption to energy flows via the Strait of Hormuz has cut the availability of naphtha, a critical ingredient used in the production of plastic packaging.

Suppliers of polypropylene and polyethylene packaging derived from naphtha are demanding higher prices with immediate effect.

Small and mid-size food manufacturers in Japan are beginning to feel the impact of naphtha shortages. A war in the Middle East began two months ago. The two-month-old war in the Middle East has upended global oil and gas markets.

Asia, including Japan, relies heavily on oil and gas imports from the Middle East. Japan Times reported that a Teikoku Databank report was published on Thursday. The Teikoku Databank report covered food and beverage products that have experienced or are expected to see price increases through September 2026.

Confectionery, including chocolate, was among the categories likely to be most affected by price rises in Japan. 8% in March 2026 from a year earlier. 8% rise in Japan’s core consumer prices in March 2026 topped the median economist estimate.

The Bank of Japan watches the measure excluding both fresh food and energy as a gauge of underlying inflation.

The Bank of Japan’s target for underlying inflation is 2%. 5% in March 2026.