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The Middle East conflict is disrupting Asia’s plastic packaging industry but the shortage is also creating winners. Companies are seeing rising demand for eco-friendly alternatives like paper, which could help Asia toward a more sustainable future.

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00:00A country renowned for its beauty industry,
00:03South Korea is seeing its vital packaging industry squeezed.
00:07At this factory in Pyeongtaek, machines have stopped mid-production.
00:11A plastic shortage tied to the Middle East conflict
00:14is disrupting the supply of everything from plastic bags to face masks.
00:20The most tangible change we're feeling is the rise in raw material prices and delays in supply,
00:26which have put us in a position where we can't manufacture our products.
00:29The war has pushed plastic prices to multi-year highs.
00:33Factories like this one warn of weeks-long delays.
00:36But the shortage is also creating winners.
00:39Demands for alternatives that don't rely on petroleum is rising fast.
00:46As plastic supplies have tightened due to the U.S.-Iran situation,
00:50inquiries for paper-based alternatives have increased threefold.
00:54Approximately 70 percent of the demand is for paper tubes used in sunscreens,
00:58essences and lotions, followed by paper sticks and pouches.
01:02The shift also reflects long-standing environmental concerns.
01:06Asia is home to the most plastic users and polluters in the world.
01:11The European Union called for a global treaty to tackle plastic production last year.
01:16But it stalled after the U.S. and plastic-producing countries pushed back.
01:20Trump's sweeping tariffs were also a blow for sustainable companies like Taiwan's elastic,
01:27which makes bamboo-based biodegradable material.
01:30Now, supply shocks are forcing change.
01:35As more people around the world use plastic, I think companies' initiatives to cut plastic
01:40and use more sustainable materials will benefit the environment,
01:44particularly given the growing severity of global plastic waste.
01:47I think Western tourists would absolutely be interested in more eco-friendly packaging in cosmetics.
01:57And celebrities could endorse it as well.
02:00And a lot of people in the West now love K-pop and K-dramas,
02:06so actors and musicians could absolutely endorse more eco-friendly packaging.
02:11A crisis in one region is now reshaping how products are packaged in another part of the world.
02:17And if disruptions persist, Asia's shift towards alternatives may come sooner than expected.
02:23Hang Xu and Lily Lamatina for Taiwan Plus.
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