Global Oil Price Volatility Drives Surge in Plastic Bag Prices

Rising oil price fluctuations have tightened the supply chain of petrochemical raw materials. In the Asia-Pacific region, consumers directly feel the impact through sharply rising plastic bag prices.

TAIPEI, TAIWAN (MERXWIRE) – Global oil prices have remained highly volatile over the past two months due to ongoing instability in the Strait of Hormuz. This has tightened the supply of plastic raw materials, and in the Asia-Pacific region, rising plastic bag prices continue to be one of the most noticeable impacts for consumers.

International Energy Agency (IEA) Executive Director Fatih Birol warned on April 23 at the Berlin Climate Dialogue that the world is currently facing “We are facing the biggest energy security threat in history” His remarks highlighted the severity of the ongoing energy crisis and its ripple effects across global supply chains.

According to statistics, Taiwan consumes approximately 9 billion plastic bags annually, widely used in night markets, traditional markets, and food stalls. Due to its massive scale, any disruption in supply quickly amplifies market impact. Vendors at traditional markets reported that plastic bags, essential for packaging fruits, vegetables, and meat, have become both scarce and roughly 30% more expensive. Many stall owners have begun stockpiling supplies in response.

In Japan, which is similarly dependent on Middle Eastern oil, packaging materials and plastic bags have generally increased in price by more than 30%, placing pressure on both businesses and retailers and further raising the cost of living. As costs are passed down the supply chain, consumers ultimately bear the burden of the energy turmoil.

In South Korea, the situation is even more pronounced. At convenience stores such as 7-Eleven in Seoul, garbage bag prices have surged by 39%, while some retailers have restricted orders for plastic products. Despite the government freezing oil price ceilings four times and providing import subsidies, sustained upward pressure in global oil markets is pushing price controls to their limits.

In fact, Asia-Pacific’s heavy reliance on plastic products has deepened the impact of the supply crisis. According to a report by Grand View Research, the global plastic bag and sack market was valued at approximately USD 23.54 billion in 2023 and is projected to reach USD 34.21 billion by 2030. The Asia-Pacific region already accounted for over 40% of the market in 2023. With accelerating urbanization and rising consumption demand, any supply disruption rapidly magnifies regional shocks.

Facing shortages and rising prices of plastic bags, many businesses have begun encouraging consumers to bring reusable bags or use reusable containers in an effort to reduce reliance on single-use plastics. Although this shift may face short-term resistance due to established consumption habits, the transition toward reusable alternatives is increasingly seen as an important opportunity to enhance resource resilience under the dual pressures of supply instability and rising costs.