Intensifying fuel costs, manufacturing pressure and disrupted transport are being passed through the supply chain, with delivery costs jumping significantly. Particularly as fuel-driven costs underpin nearly every stage of the food system, the uncertainty of the direction the political climate is taking is being seen across the industry. This uncertainty is driving behavioural shifts, including early signs of panic buying and stockpiling, further destabilising supply with demand.

Rising freight costs have driven up packaging expenses, specifically for plastic jars, films, bottles, and tubes, for buyers in the food, beverage and personal goods sectors. Plastic packaging relies heavily on oil-derived inputs, and disruptions to Middle Eastern supply chains are constraining access to key petrochemicals. This is pushing up the cost of packaging materials globally, with Australian manufacturers already warning of reduced availability and rising input costs. This can lead to increased product pricing and a decrease in the availability of certain materials.

The current global crisis is trickling down to conversations for packaging producers who fail to recycle. Australia is again considering a levy on plastic packaging, designed to incentivise recyclability and reduce reliance on virgin materials. However, the timing is notable, as introducing additional cost signals into a system already under pressure from fuel and material shortages raises the key questions of whether businesses are equipped to transition packaging formats under current supply constraints.

Right now, businesses need support, security and trust in an industry under pressure. MSAC is here to assist you in navigating change and keeping you informed with the most up-to-date requirements and updates your business needs.