Seoul: Consumers in South Korea are stockpiling garbage bags as prolonged Middle East tensions continue to disrupt the global crude oil and naphtha supply, raising concerns over potential shortages of plastic and vinyl products, industry sources said Monday. Major discount and convenience store chains have reported a surge in garbage bag sales and begun limiting per-person purchases amid the spike in demand.
According to Yonhap News Agency, the supply concerns come with disruptions in the domestic naphtha supply, a key feedstock widely used in petrochemical and other industries, following U.S. and Israeli air strikes on Iran. Under South Korea's volume-based waste fee system, households are required to use district-designated plastic bags for general and food waste. The bags are sold at convenience stores, supermarkets, and other neighborhood shops. E-Mart, a leading discount store chain under retail giant Shinsegae, reported a 287 percent on-year increase in garbage bag sales between March 22 and Sunday, while Lotte Mart saw a 140 percent rise from March 23 to Saturday. GS25, a convenience store chain operated by GS Group, posted a 325 percent jump in garbage bag sales.
To curb panic buying and manage inventories, many retailers have begun limiting purchases of standard volume-based garbage bags. Homeplus, for example, has issued guidelines to its stores restricting purchases to one bundle per person. At the same time, concerns are also rising over potential shortages of plastic containers and packaging materials. Fried chicken chains, coffee shops, and other delivery-focused businesses-which rely heavily on plastic containers and cups-are reporting rising costs.
"A disposable cup manufacturer has raised the possibility of price hikes and production cuts," an official from Ediya Coffee said. Genesis BBQ Group, which operates the BBQ Chicken franchise, recently held a meeting with franchisees, warning that rising oil prices could increase overall costs, including those for plastic shopping bags, aluminum containers, and logistics. "While there are no immediate supply issues with our current inventory, there is a high likelihood of price increases," a chicken franchise official said. "If the situation persists, the burden could eventually shift to franchise owners."