"Colorful Packaging Now a Luxury": Japan's Top Confectionery Company Switches to Black-and-White Packages Amid Middle East Risk

Sequential Application to 14 Popular Products Starting with Shipments on the 25th
Ink Supply Disruptions Due to Naphtha Shock from the Strait of Hormuz

The supply chain shock originating from the Middle East is not only affecting crude oil and gasoline prices but is also shaking up the packaging of everyday consumer goods such as potato chip bags, beverage labels, and cosmetics containers. Amid this situation, Japan’s leading confectionery company, Garubi, has decided to change the packaging of its main products, including potato chips, to black-and-white packages as a cost-saving measure. This action is a response to the surge in international oil and naphtha prices—driven by Iran’s blockade of the Strait of Hormuz—which has made it difficult to procure packaging materials such as printing ink.

Garubi has decided to sequentially switch the packaging of some snack products from the existing color printing to black-and-white two-color printing, starting with shipments on the 25th. Screenshot from SNS

According to Japanese media outlets including the Yomiuri Shimbun on the 12th, Garubi will gradually switch the packaging of some snack products from color printing to black-and-white two-color printing starting with shipments on the 25th. This change will affect 14 popular products, including “Potato Chips Lightly Salted,” “Consommé Punch,” “Nori Shio,” and “Kappa Ebisen.” TV Asahi also reported that Garubi is simplifying its packages to ensure stable supply, within the limits of not affecting product quality, as the procurement of raw materials such as printing ink has become unstable due to heightened tensions in the Middle East. The switch to black-and-white packaging by Garubi is seen as a symbolic case that demonstrates how the shortage of petrochemical raw materials is spreading throughout the entire consumer goods industry, going beyond just cost reduction.

New Product Launch Originally Scheduled for July Also Delayed

Garubi has also decided to postpone the launch of its new “Sour Cream Flavor” product, which was originally scheduled for release in July. The company stated, “Procurement of some raw materials has become extremely unstable due to the worsening situation in the Middle East,” and added, “Since it is difficult to predict future developments in Iran, we will prioritize stable supply and respond swiftly and flexibly.”

This measure was prompted not by a shortage of raw materials for the potato chips themselves, but by disruptions in the packaging supply chain. Naphtha is a key petrochemical material produced during the oil refining process and is widely used not only in plastic films and containers but throughout the packaging process—including as a solvent and resin in printing ink and as an adhesive. As logistics for crude oil and petroleum products through the Strait of Hormuz have been disrupted, both naphtha prices and packaging material costs have spiked across Asia. According to Reuters, petrochemical companies in Asia, including those in Korea and Japan, are experiencing supply disruptions and upward price pressure as they are highly dependent on Middle Eastern naphtha.

There are also predictions in Japan that the trend toward simplified packaging, like that of Garubi, may spread throughout the food and beverage industry. Hiroyuki Urata, president of Itoham Yonekyu Holdings, a ham and sausage manufacturer, recently mentioned during an earnings announcement, “It may become difficult to have colorful packages in the future,” referring to the possibility of simple, black-and-white packaging. According to Nikkei, some mid-sized beverage companies have also reportedly decided to stop printing on the containers of 15 lactic acid bacteria beverage products, including private-label items from major distributors, starting in the latter part of this month.

Korean Companies Closely Monitoring the Situation... Prices of Food Packaging Film and Ink Rise by 20–30%

Korean companies are also closely monitoring the situation. The food and beverage industry is checking inventory and preparing for the possibility of rising costs and delivery delays for packaging materials such as plastic film, labels, ink, and adhesives. The Korea Economic Daily reported that large domestic food companies have secured some packaging material inventory to last through June, but there is growing concern among small and medium-sized businesses that “May is the limit,” and that the prices of food packaging film and ink have already risen by more than 20–30%.

Despite difficulties in securing raw materials such as naphtha due to the prolonged Middle East war, on the 3rd, production of volume-based waste bags is underway at a volume-based waste bag manufacturing factory within a vocational rehabilitation facility for the disabled in Seo-gu, Incheon. Photo by Yonhap News

The impact is being felt not only by consumer goods companies such as instant noodles, confectionery, and beverages, but also by the cosmetics and pharmaceutical industries. Packaging for cosmetics containers, pouches, labels, and infusion solutions for pharmaceuticals is mostly produced using petrochemical-derived materials. According to Reuters, the energy crisis originating from the Middle East is putting pressure on the supply and demand of packaging materials for Korean food and cosmetics companies, with some firms facing production disruptions and cost increases.

Urgent Need for Packaging Materials in Korea’s Food, Cosmetics, and Pharmaceutical Industries

The Korean government is also on high alert for the possibility that the naphtha supply chain instability could spread to overall living costs. Deputy Prime Minister and Minister of Economy and Finance Koo Yoon Cheol announced at an emergency economic headquarters meeting last month that the government will temporarily relax packaging label regulations to allow alternative packaging for food, hygiene products, and pharmaceuticals, and will expedite the review period for alternative packaging item approvals.

Kim Junggwan, Minister of Trade, Industry and Energy, is delivering opening remarks at the "Crude Oil and Naphtha Supply and Demand Response Monitoring Meeting" held at the Coal Hall in Jongno-gu, Seoul, on the 15th of last month. Photo by Kang Jinhyung

In particular, regulatory easing is underway in the pharmaceutical and essential consumer goods sectors to prevent packaging bottlenecks from leading to production disruptions. The government is temporarily allowing mandatory labeling by attaching stickers instead of the conventional direct-printing method on packaging, and is considering prioritizing naphtha supply for essential items such as infusion solution packaging.

Industry sources believe that if the packaging material shortage is prolonged, pressure to raise product prices may intensify. Although packaging materials may seem to account for a small portion of product costs, for mass-produced items such as food and household goods, increases in the costs of film, labels, ink, and adhesives quickly translate into higher manufacturing costs. If rising logistics costs and exchange rate fluctuations are added to this, companies may consider reducing discounts, adjusting product sizes, or increasing prices. A food industry official stated, “It’s not that all product packaging will immediately switch to black and white, but reducing color printing or simplifying label structures are definitely options under review. If the naphtha supply shortage continues, there will be a stronger trend toward prioritizing supply stability over product design.”

This content was produced with the assistance of AI translation services.