Iran War Drives Up Ink Prices, Japanese Snacks Go Black-and-White

AI Summary

The US-Israeli war on Iran has led to a shortage of ink, causing Japanese snack companies like Calbee to switch to black-and-white packaging. The war has disrupted shipping and energy flows through the Strait of Hormuz, affecting supplies of key ingredients used in coloured inks.

The Impact of Iran War on Japanese Snacks

The US-Israeli war on Iran is draining the colour from Japan’s supermarket shelves, with the biggest crisp makers swapping once-vibrant packaging for monochrome as a result of a shortage of ink.

Calbee's Response to Ink Shortage

Tokyo-based Calbee, one of the most popular brands in the snack market, has said it will – at least temporarily – switch to using black and white on the packaging of 14 of its products, including its Calbee Potato Chips.

The Data Analysis

Japan imports 40 percent of its naphtha, an oil derivative needed to make printing ink, from the Middle East. The closure of the Strait of Hormuz has affected Japan, leading to a global supply shock.

The Impact Analysis

The war has triggered a global supply shock, affecting supplies of key ingredients used in coloured inks. Printing inks rely heavily on petrochemical feedstocks, including solvents and resins derived from naphtha, a crude oil by-product.

The Prediction

Major ink and chemical producers have raised prices due to the volatility in oil and gas supplies from the Middle East. The substantial volume of naphtha Japan imports from the Middle East makes Japanese manufacturers highly vulnerable to the security situation there.