An unexpected "plastic bag crisis" is unfolding in South Korea as the prolonged Middle East conflict raises concerns over potential supply disruptions of naphtha, a key raw material for plastic products. Demand for vinyl products including designated waste disposal bags has surged rapidly. While the government and retailers insist that "inventory remains sufficient," pay-per-use garbage bags are disappearing from convenience stores and supermarkets. Growing consumer anxiety has even emptied plastic product shelves at some Daiso, the major budget retail chain, stores.
Sales of pay-per-use garbage bags at Korea's three major convenience store chains — CU, GS25 and Seven Eleven — have soared recently. According to GS25, sales of pay-per-use bags from May 22 to 26 surged 325.2% for general waste bags and 277.7% for food waste bags compared with the preceding period of May 15 to 19. Seven Eleven saw a 308% jump in general pay-per-use bag sales over the same period. CU also reported that food waste bag sales rose 153.3% and general waste bag sales climbed 216.4% from May 22 to 24 compared with the previous week.
The government drew a clear line against the possibility of supply disruptions, saying pay-per-use bag supplies are sufficient. The Ministry of Climate, Energy and Environment said on May 27 that an inventory check of 228 local governments nationwide found average finished product stocks of pay-per-use bags exceeding three months' worth. Of the 228 local governments, 123 — roughly 54% — hold more than six months of inventory. Seoul holds four months' worth of stock, Incheon 200 days' worth, and Gwangju three to four months' supply.
Daiso Vinyl Shelves "Empty"... "A Temporary Phenomenon"
Plastic product shortages are also emerging at Daiso, the budget household goods retailer. Posts have been flooding online communities saying "This is the first time I've seen Daiso's vinyl section completely empty" and "A vinyl crisis following the mask shortage." As of May 30, many plastic bag products on Daiso Mall, the company's online shopping platform, were also temporarily out of stock.
Daiso said there are no problems with its inventory management. A Daiso official explained that the offline store shortages were "due to a temporary surge in demand," adding that "some stores had relatively low inventory to begin with." The official added that "online Daiso Mall accounts for only about 2% of total sales," and that "the temporary stockout occurred because online inventory levels are low."
Industry observers largely attribute this "plastic bag crisis" more to consumer psychology than actual supply shortages. However, if the Middle East situation drags on, a naphtha supply crisis could become a reality, and related industries are closely monitoring the situation.
Meanwhile, the government has added household vinyl products such as plastic wrap to its intensive price monitoring list.
