Naphtha Shortages Having a Growing Impact in Japan

The leading Japanese snack-food manufacturer Calbee has made headlines through its announced switch to black-and-white packaging for some of its products due to naphtha shortages, which are having a growing impact on a wide range of industries.

A Clear Impact

The Iran war is leading to increased shortages of naphtha, a petroleum-derived raw material used in a wide range of products.

On May 12, major snack maker Calbee, known for its potato chips, announced that it would use black-and-white packaging for 14 of its most popular products.

The naphtha shortage has affected the supply of ink and solvents needed for printing on packaging. The firm stated, “Calbee will continue to respond flexibly and promptly to changes in its operating environment, including geopolitical risks, and remains committed to maintaining a stable supply of safe, high‑quality products.”

Photos of potato chips and the potato mascot that has been a popular character since its 1976 debut will also disappear from packaging for the time being. Calbee will gradually roll out monochrome packs for potato chips and granola from May 25.

A Wide Range of Industries Affected

Teikoku Databank has identified 52 Japanese companies using naphtha to make basic chemical products like ethylene, synthetic rubber, and PVC resin. These are then distributed to manufacturers via direct transactions, through trading companies or wholesalers, or through purchases of parts and components from first-tier manufacturers who process the basic chemicals.

A total of 46,741 Japanese manufacturers are involved in this distribution network, or around 30% of the 150,000 manufacturing companies included in the survey.

The chemicals, petroleum, and coal products manufacturing sector is most vulnerable to naphtha price rises and shortages; of the 4,700 companies in this sector, 67.2% are integrated into the naphtha supply chain.

Within the sector, 88.4% of companies producing cyclic intermediates—raw materials for plastics, synthetic fibers, dyes, pharmaceuticals, cosmetics, and agrochemicals—are integrated into the naphtha supply chain. The same is true for 87.3% of companies making gelatin and adhesives, including synthetic adhesives, and 84.0% of those manufacturing surfactants, which are widely used in automotive paints and household detergents.

In the pulp, paper, and paper products manufacturing sector, 80.1% of companies making coated paper, used for things like fast-food packaging and paper cups, are integrated into the supply chain. Even sectors that seem to be unrelated—such as food, livestock feed, and beverages—can be affected by problems such as difficulties with obtaining packaging.

While the government says that Japan has secured the quantities it needs, and there are no supply issues, Calbee is not the only company to take measures.

Mizkan suspended sales of four of its nattō products on May 1, citing potential problems procuring containers and packaging. In April, Nisshin Seifun Welna started using plain packaging tape for spaghetti, where previously the tape had the cooking time printed on it.

In the medical and nursing care sectors, there are growing shortages of products including syringes and rubber gloves. Price hikes and restrictions on sales are also affecting residential insulation and packaging film for food. If the conflict in the Middle East continues, the impact is likely to become more serious among all aspects of daily life.