Geopolitical tensions in the Middle East are leading to historic bottlenecks and price surges in raw materials. The German plastic packaging industry is facing massive challenges.
Geopolitical tensions in the Middle East have led to an unprecedented bottleneck in raw material markets, plunging the German plastic packaging industry into a deep crisis. 105 manufacturers of plastic packaging and films in Germany, in the current IK economic survey, report significant economic challenges. The supply security and delivery capability of these predominantly medium-sized companies are massively endangered.
Middle East conflict is blocking global supply chains
The conflict in the Middle East has led to supply chain blockages worldwide. Suppliers of packaging plastics are invoking „force majeure“ and are either no longer delivering at all or only at severely inflated prices. The raw material availability index has fallen from a positive value of 13 points at the start of the year to a historic low of -86 points. This drastic deterioration highlights the profound impact on the industry.
Massive price surge hits manufacturers
Price increases from raw material suppliers can only be partially passed on to their customers by packaging manufacturers. According to a survey by the German Association of Plastics Processors (GKV), 99 percent of packaging manufacturers are confronted with price surcharges. Although the earnings situation in the plastic packaging industry in the second quarter of 2026 is assessed as less negative than in the crisis quarters of previous years, the sharp price increases and restricted availability suggest a further deterioration of the situation.
Slight economic recovery, but falling profits
Despite the difficult situation, companies' sales expectations remain stable. The assessment of the general economic situation has slightly improved, with the corresponding index value rising from -67.9 to -51.4 points. Nevertheless, half of those surveyed expect their profit margins to continue to shrink. Demand is only slowly stabilising, which further weighs on the situation.
Focus on security of supply
Dr. Martin Engelmann, CEO of the German Retail Association (HDE), emphasised the need for collaborative efforts along the value chain to ensure supply security. The current combination of supply disruptions and extreme price surcharges is pushing many small and medium-sized businesses to their limits. In light of the energy and raw materials crisis, it is important to find solutions together to overcome the challenges.
The plastic packaging industry faces an uncertain future as geopolitical tensions and the resulting economic challenges continue to put pressure on companies. The coming weeks will show whether and how the sector can adapt to the new circumstances, it is stated.
Source: IK Industrial Association for Plastic Packaging
