Plastic Prices Are Rising, But Why It Matters NOW?
If you’ve noticed everyday products getting more expensive, it’s not your imagination. Rising oil prices are directly impacting the plastics industry, and the effects are happening fast.
The Link Between Oil and Plastics
Plastic resins, the raw materials behind storage containers, packaging, and daily essentials are heavily tied to crude oil. In fact, around 70–90% of resin production costs come from oil-based feedstocks. When oil prices spike, plastic costs often rise quickly and significantly.
What’s Driving the Surge?
Recent geopolitical tensions, especially in the Middle East, have disrupted global oil supply. This has led to noticeable increases in crude oil prices and, in turn, higher production costs worldwide.
In real terms:
- Oil prices have seen sharp increases during periods of conflict
- Polymer prices in Asia have risen by up to 40–60%
- Packaging and logistics costs are also climbing
For manufacturers, these aren’t small adjustments. They significantly affect production costs at every level.
The Domino Effect on Businesses
As resin prices rise, businesses are left with tough choices. Many eventually pass these costs on to customers.
This is especially difficult for industries like F&B, which are already facing:
- Rising ingredient costs
- Higher utilities and rent
- Increased logistics expenses
Higher costs for storage solutions can delay upgrades, affecting efficiency and operations.
Our Approach at TOYOGO
At TOYOGO, we see things differently.
While costs have undeniably increased on our end, we’ve made a conscious decision to prioritise price stability over short-term margins. We understand that our products aren’t just purchases, they’re essential tools for homes and businesses.
A large portion of our customers rely on practical, durable storage solutions to keep their operations running smoothly. Passing on aggressive price hikes would only add pressure where it’s already being felt the most.
That's why we are committed to:
- Keeping our prices affordable and consistent
- Minimizing price increases
- Absorbing part of the cost impact
In times like these, stability matters more than ever. While market conditions continue to fluctuate, our goal remains clear: to ensure that pricing is the least of your concerns.
At TOYOGO, we believe better storage should always be within reach, without compromise.
