"Even Buying Toilet Paper Is Scary"... Essential Goods Prices in Japan to Rise Up to 15% Amid Middle East Supply Crisis
Japanese Paper and Household Goods Companies
Announce Successive Price Adjustments
In Japan, prices of sanitary products such as sanitary pads and diapers continue to rise due to increased raw material costs stemming from escalating tensions in the Middle East. Japanese paper manufacturers have also adjusted their prices, citing higher fuel and logistics expenses.
On the 19th, Japanese broadcaster NHK and the Yomiuri Shimbun reported that Daio Paper Corporation announced it will raise prices by 15% on all household and commercial products starting in August of this year.
The price increases apply to all products sold under the "Elleair" brand, including toilet paper, kitchen towels, diapers, and sanitary products.
The company explained that heightened tensions in the Middle East have led to higher fuel and logistics costs, in addition to rising prices for packaging materials and ink used for package printing.
Daio Paper Corporation stated, "We have decided to implement the price increase because it is difficult to maintain the current pricing system if we wish to continue providing safe and high-quality products in a stable manner."
However, regarding supply volumes, the company explained, "We currently maintain an adequate inventory of raw materials and supplies, so stable supply is possible."
Japanese household goods manufacturer Kao is also in negotiations with retail partners to raise prices on sanitary products and paper diapers after September. Another household goods company, Unicharm, plans to raise prices on paper diapers and sanitary products after July. Unicharm stated, "We are reflecting the increased added value of the products in the price."
The main reason for this round of price hikes is the surge in raw material costs, particularly naphtha—a crude gasoline extracted from crude oil. The stagnation in naphtha supply due to worsening conditions in the Middle East has spread across all essential goods, making price increases unavoidable.
An image of Garubi's "Potato Chips Low-Sodium Flavor" packaging in black and white. Photo by Yonhap News
View original imageSanitary products and paper diapers use a significant amount of naphtha-derived raw materials, such as nonwoven fabrics and superabsorbent polymers. Surfactants used in detergents and cosmetics are also reported to contain a high proportion of naphtha-based ingredients.
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Previously, as concerns mounted within Japan’s distribution industry over potential naphtha shortages caused by supply chain shocks from the Middle East, some consumer goods packaging was modified. Calbee, the largest confectionery company in Japan, announced that starting with shipments on the 25th, it would gradually switch some snack product packaging from full-color printing to black-and-white two-tone printing. Calbee explained that instability in the supply of naphtha, resulting from deteriorating Middle East conditions, had affected the supply of printing ink, prompting this decision.
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