Naphtha Shortage Prompts Packaging Shift for Japanese Snack Maker

Japanese snack producer Calbee recently replaced its signature colourful packaging with a plain, monochrome design. The change was not a marketing experiment; it reflected a shortage of naphtha, a petroleum-derived feedstock used in polyester fibres and packaging films. The shortage has already begun to affect product appearance on store shelves.

South China Morning Post

Analysts attribute the tightening of naphtha supplies to two intertwined forces. First, geopolitical tensions have disrupted trade flows for oil-derived inputs. Second, China—home to the world’s largest oil-refining capacity—has imposed fuel export controls that limit the amount of naphtha available to overseas markets. Late-August estimates from Goldman Sachs analysts led by Yulia Zhestkova Grigsby indicate that global refinery outages are running about 60 percent above seasonal norms, further curbing the production of naphtha and related products.

South China Morning Post

A June survey conducted by corporate-research firm Tokyo Shoko Research captured the breadth of the problem in Japan. Roughly 80 percent of more than 7,000 respondent firms reported difficulty securing oil-derived inputs such as naphtha, prompting media outlets to coin the phrase “naphtha bankruptcies” to describe mounting corporate anxiety.

South China Morning Post

Goldman Sachs analysts argue that the confluence of heightened geopolitical conflict and China’s export restrictions has created a “tight conditions” environment for naphtha. They warn that the current imbalance could persist as long as refinery outages remain elevated and export policies stay in place, potentially extending the supply strain beyond the current summer season.

South China Morning Post

• “Then news reports explained the switch stemmed from a naphtha supply crunch. I even looked up the word,” — David Chen — David Chen, a Chinese national residing in Japan.

South China Morning Post