If you’ve noticed recent movement in packaging pricing across the market, you’re not alone. Over the past few weeks, there’s been a sharp and unusual shift in the cost of plastic-based materials—driven largely by disruptions in petrochemical supply coming out of the Middle East.
At Shardlows Packaging, we believe in being upfront about what’s happening behind the scenes, so you can plan with confidence.
What’s Causing the Increase?
The main driver is the rapid rise in the cost of resin and polymer materials, which are the building blocks for many everyday packaging products.
These materials are heavily linked to global oil and petrochemical markets. Recent instability in key supply regions has led to:
- Significant increases in raw material costs – in some cases up to 50%
- Suppliers shifting to short-term or “spot” pricing, rather than stable long-term rates
- Reduced predictability in supply chains, making pricing harder to lock in
This isn’t isolated to one supplier or one product—it’s being felt across the entire packaging industry.
Freight Costs Are Also Rising
Alongside material costs, freight has also been impacted.
- International shipping costs have increased due to fuel prices and global logistics pressure
- Domestic freight within New Zealand has followed suit, with higher transport and distribution costs
These combined pressures mean the total landed cost of many products has risen quickly.
Which Products Are Affected?
You’ll see the biggest impact across plastic-based packaging products, including:
- Pallet wrap (stretch film)
- Strapping (plastic/PET/PP)
- Adhesive tapes
- Plastic bags and liners
Of these, pallet wrap is likely to see the most noticeable short-term increases due to its high reliance on resin.
Why the Changes Are Happening So Quickly
Normally, pricing changes come with longer notice periods. However, the pace of these increases has been unusually fast.
Many suppliers have:
- Implemented price increases effective from 1 April
- Introduced temporary surcharges tied to raw materials and freight
- Waived standard notification periods due to the volatility of the market
This has meant the usual buffer time simply hasn’t been available.
What This Means for Our Customers
Pricing on affected products will be adjusted to reflect these increased costs. Only products that are affected by oil prices and freight will incur a price increase.
We know this isn’t ideal—especially when consistency matters for your own planning and margins. Our focus is to:
- Be transparent about what’s driving these changes
- Apply increases only where necessary
- Help you explore alternative products or solutions where possible
Is This Permanent?
At this stage, all indications suggest these increases are likely to be temporary.
The current volatility is tied to global supply conditions. As those stabilise, we expect:
- Raw material pricing to ease
- Freight pressures to reduce
- More stable pricing to return over time
We’ll continue to monitor the situation closely and pass on any improvements as soon as they occur.
We’re Here to Help
If you’d like to talk through options—whether that’s alternative materials, different product formats, or simply understanding how this affects your business—our team is here to help.
We’ve been working alongside businesses for decades, and times like this are where good communication and practical solutions matter most.
Got questions?
Get in touch with your Account Manager or contact the team at Shardlows Packaging—we’re always happy to help.