The impact of the Middle East situation on the Japanese food industry

The impact of the Middle East situation on the Japanese food industry
1, Raw material side: shortage and price increase of core chemical raw materials
The Iran conflict has caused disruptions to shipping in the Strait of Hormuz, resulting in a sharp drop in Japan's crude oil imports, tight supply of naphtha, and skyrocketing prices. Japanese naphtha is highly dependent on imports from the Middle East, and the shortage of raw materials directly hinders the upstream and downstream of food production.
2, Production end: Product discontinuation, forced adjustment of production mode
Multiple food products are out of supply due to a lack of plastic packaging: refrigerated dumplings and various sauces and seasonings are suspended from production and sale; Reduce production capacity of essential foods such as natto and bread.
Passive change of production plan for enterprises: Dumpling manufacturers abandon plastic trays and switch to bagged frozen dumplings.
Packaging downgrade: Snack giant Kalebi has changed multiple colored packaging potato chips to black and white packaging, causing packaging "fading" due to a shortage of ink raw materials.
3, Cost side: The industry is generally experiencing price increases, and this summer is ushering in a wave of price hikes
The cost of packaging materials has skyrocketed, and companies are shifting costs downstream.

72.5% of surveyed food companies have clear plans to raise prices.
Industry research shows that 44.1% of enterprises have been impacted by raw material shortages, and 31.4% of enterprises predict that they will continue to be affected in the next three months; 35.3% of companies plan to cut low profit products. Japanese officials predict a large-scale food price hike in the summer of 2026.
4, The derivative effects of implicit industrial chains
The raw materials of deeply processed food are limited: the edible essence of ice cream and chocolate depends on naphtha derivatives, and the production capacity and cost are under pressure.
Restrictions on imported fresh produce: Imported fruits such as bananas and avocados, as well as ethylene ripening materials extracted from petroleum, are in short supply, making preservation and circulation more difficult.
Rising logistics costs: The prices of food transportation truck consumables and packaging consumables have increased, further exacerbating the cost of food circulation.