* Middle East conflict snarls supplies of plastic
feedstock
* Asia is home to the world's biggest plastic users and
polluters
* Crisis benefits South Korean, Taiwan makers of
alternatives
* Price hikes coming, say Japanese makers of plastic
wrap, bags
By Minwoo Park, Kaori Kaneko and John Geddie
SEOUL/TOKYO, April 15 (Reuters) - An 'eco-friendly'
range of paper tubes and pouches touted by Yonwoo, a South
Korean maker of packaging for cosmetics, has reaped unexpected
benefit from the Iran war, which has disrupted supplies of the
plastic needed to turn out single-use wrapping.
While the conflict has sent prices of plastic soaring to
roughly four-year highs by choking off flows of the required raw
materials of oil and petrochemicals, the company says it has
fuelled inquiries three-fold for paper-based options.
"Interest initially came from companies focused on
sustainability ... but if the plastics issue gets prolonged we
expect demand to further increase," said Kim Min-sang, a senior
manager at parent Kolmar Korea.
The supplier to major firms, such as France's L'Oreal
, has fielded inquiries mainly for paper tubes encasing
items such as sunscreen and lotions that use just 20% of the
plastic employed by conventional packaging, Kim told Reuters.
Across Asia, home to some of the world's biggest plastic
users and polluters, changes that environmental groups have
sought for decades are quickly being adopted, even if they may
prove a short-term flip.
MORE UNCERTAINTY AHEAD
Asia is not only heavily reliant on feedstock imported from
the Middle East, but it is hooked on plastic, with China, Japan,
South Korea and Southeast Asia together using almost a third of
the world's total by 2022, OECD data showed, up 900% since 1990.
The region also accounts for more than a third of all
plastic waste leaking into the environment, thanks to poor waste
collection methods in low-income Southeast Asian nations.
Japan ranks behind only the United States in terms of
plastic production and consumption per head, according to a 2025
study by researchers from Beijing's Tsinghua University
published in the science journal Nature.
Wholesalers there have been warning about possible shortages
of plastic trays and bags, said Kensuke Takahashi, product
manager for Marutake supermarket in Saitama, adjacent to Tokyo.
"We now have to discuss how to sell our products if trays
are no longer supplied at all," said Takahashi. "I'm very
worried. We really don't know what will happen."
Japanese makers of plastic bags and cling wrap, Mitsubishi
Chemical and Sanipak, have said they will raise prices by about
30% in coming weeks for some products as the conflict drives up
costs of raw materials.
FORCED TO PIVOT
Talks for a global treaty to tackle plastic pollution
stalled last year after the United States and plastic-producing
countries pushed back against a drive to cap plastic production
led by the European Union.
It is one of several environmental initiatives to lose steam
under U.S. President Donald Trump, who has called climate change
a hoax.
Trump's sweeping trade tariffs were also a blow for Taiwan's
Lastic, which makes bamboo-based biodegradable material, said
senior development manager Luke Anderson.
American airlines eyeing the material to replace disposable
plastic cups and cutlery lost interest after Trump imposed the
levies on U.S. imports last year, he said.
Now, as prices of plastic rise, several of his U.S. buyers
have sought fresh quotes. "It's not that I like to look at the
upside of war, but ... if you can't control it, you've got to
find the silver lining," he said.
Some companies are adapting to new alternatives.
In Malaysia, dairy producer Farm Fresh said it has
temporarily switched to paper-based milk cartons because of the
plastic supply disruptions.
But there is no quick fix for others, such as South Korea's
Gaone International, which makes packaging for face masks.
Testing new materials would take time, so it has slashed
daily output to between 10% and 20% from the usual 1 million
units as it hunts for new suppliers.
The 20-year-old factory is now warning clients of a wait of
up to eight weeks for orders to be filled, and expects revenue
to suffer accordingly, said sales team manager Han Kyung-hun.
"I hope things return to normal as soon as possible," said
Han, but cautioned recovery could take a couple of months, even
if the war ended immediately.