Food vendors across Asia are contending with rising costs for plastic products essential to their businesses, a challenge linked to the recent energy crisis triggered by the conflict in the Middle East. Although a ceasefire agreement between the United States and Iran has been reached, market recovery is expected to be slow, with ongoing concerns about shipping disruptions through the strategically important Strait of Hormuz, a critical route for global oil supplies.

In Taipei, vendors are directly feeling the impact. At the Songjiang market, 52-year-old chicken seller Li Yu-ping reported that as of early June, the price of plastic bags had surged by nearly 60 percent, while plastic trays increased by about one-third. Li noted that plastic items are used ubiquitously in her operations, from bags to food containers—all disposable products. Despite the increased costs, vendors are often hesitant to pass these expenses on to customers, which has put additional financial pressure on their businesses.

The surge in plastic prices is largely attributable to the rising cost of ethylene, a primary raw material used in manufacturing plastics. Ethylene is typically produced from naphtha, a petroleum derivative, whose price has been influenced by fluctuations in global oil markets bearing the imprint of geopolitical tensions.

While the recent diplomatic developments may alleviate some of the supply chain uncertainties, experts caution that a full normalization of material costs and availability will require time. Meanwhile, vendors reliant on plastic packaging continue to navigate the complexities imposed by volatile energy prices and geopolitical instability, balancing operational needs with the economic realities of their local markets.