Rigid plastic packaging manufacturer Pact Group is navigating significant disruption to resin supply, as Middle East conflict and shipping constraints drive shortages, price spikes and rising costs across the packaging value chain.
The company confirmed it is experiencing “unprecedented disruption” to international resin supply, with the effective closure of the Strait of Hormuz impacting the reliability of exports from key producing regions across the Middle East and Asia.
Several suppliers have invoked force majeure clauses in existing supply agreements, while others have rapidly increased resin prices in response to tightening availability.
In response, Pact says it is seeking alternative sources of supply where possible, as it works to maintain continuity for its customers.
The disruption is not limited to resin. The company said broader raw material inputs are also being affected, alongside ongoing instability in international shipping and container networks. Both international and domestic supply chain costs are rising sharply as a result.
Pact has moved to pass through increased costs immediately, including higher resin prices, freight charges and other input costs.
The company warned that conditions are expected to tighten further, with resin supply security likely to deteriorate and prices continuing to rise as the situation remains volatile.
While it is too early to quantify the full financial impact, Pact indicated that effects are expected to become clearer towards the end of Q4 FY26.
The company noted that global supply chain disruption has been identified as a key risk in its 2025 Annual Report. Over the past three years, Pact says, it has taken steps to reduce reliance on single-source resin supply and strengthen procurement resilience, which it expects will partially mitigate the current disruption.
The developments underscore growing concern across the packaging industry, where access to resin remains critical to production, and where volatility in global markets is increasingly influencing cost structures and supply reliability.
