Malaysia PET plastic prices up 40pc as shortage hits packaging supply chain

KUALA LUMPUR, April 10 — Malaysia is beginning to feel the impact of a tightening plastic packaging market, with PET resin shortages and rising prices of up to 40 per cent already disrupting supply and hitting retail availability.

Industry players say the shortage of polyethylene terephthalate (PET) – a key material used in bottles and food packaging – has been triggered by disruptions in the petrochemical supply chain linked to the ongoing West Asia conflict, Utusan Malaysia reported today.

Malaysia Plastic Manufacturers Association (Johor chapter) chairman Mike Tan said PET production is directly dependent on crude oil supply, meaning any disruption in crude flows quickly translates into reduced packaging output.

“For PET, no crude means no production,” he was quoted as saying, pointing to the tight link between upstream energy markets and downstream packaging supply.

He said manufacturers are already raising plastic prices by between 15 per cent and 40 per cent, depending on material type, as supply tightens.

The shortage is no longer confined to factories, with some retailers reporting difficulty sourcing packaged goods and consumers noticing gaps in certain beverage and consumer products.

Tan warned that if geopolitical tensions persist, supply constraints could deepen further and spread across more segments of the manufacturing and distribution chain.

He added that switching to alternatives such as glass is not always viable due to higher costs, heavier logistics, and slower delivery cycles.

Farm Fresh is a major Malaysian dairy producer that relies heavily on plastic bottles and packaging for distribution, making it particularly exposed to PET shortages and price spikes.

Malaysian dairy producer Farm Fresh, which relies on plastic bottles and packaging for distribution, has also been affected.

Its CEO Azmi Zainal said packaging constraints is forcing the company to temporarily shift towards carton-based and alternative packaging formats.

He said the impact is industry-wide, affecting all producers reliant on plastic packaging, and warned that prolonged disruption would continue to push up costs.

Consumers Association of Malaysia honorary adviser Lee Nan Sang said rising packaging costs are already feeding into higher food prices, urging both consumers and businesses to adapt to cost pressures.