TL;DR: Plastic packaging prices are rising because oil prices are increasing. Since ~85–90% of plastics are derived from fossil fuels, higher oil costs lead directly to higher resin prices, which typically flow through to packaging within 30–90 days. Businesses that rely on shrink bags, poly bags, or cello wrap should consider purchasing ahead of price increases to protect margins.
If you rely on these materials, the smart move is to buy now and lock in current pricing before increases hit, otherwise your margins take the hit later.
Why Are Plastic Packaging Prices Increasing?
If your business relies on plastic packaging, including poly bags, shrink bags, and film you may soon see higher costs.
Recent shifts in global oil markets are expected to drive increases in resin prices, the core material used to produce most plastic packaging products. For businesses that rely on consistent supply and predictable costs, this isn’t just an industry update it’s something that can directly impact margins.
How Oil Prices Impact Resin and Packaging Costs
Plastic packaging materials, including shrink bags and poly bags. are made from petroleum-based resins such as polyethylene.
- 85–90% of plastics are derived from fossil fuels (industry standard estimate)
- Resin pricing closely tracks oil and natural gas markets
- During previous oil shocks, resin prices have increased 20–50% within months
Once resin prices rise, manufacturers pass those costs downstream to distributors and buyers.
Why This Matters for Businesses
Packaging is often a high-frequency, operational cost not a one-time purchase.
When prices increase, it impacts:
- Cost of goods sold (COGS)
- Shipping and fulfillment expenses
- Overall profit margins
For businesses that use packaging daily, even small increases can add up quickly over time.
What Smart Businesses Are Doing Right Now
Businesses that stay ahead of cost increases tend to take a proactive approach.
Instead of reacting to price changes later, they:
- Review current packaging usage and inventory levels
- Purchase ahead of expected increases
- Lock in pricing while costs are still stable
This approach helps maintain predictable margins and avoids sudden cost spikes.
Why Shrink Bags and Poly Packaging Are Especially Impacted
Products like flat shrink bags and poly bags are directly tied to resin pricing because they are made primarily from plastic materials.
These products are widely used for:
- Product bundling and protection
- Retail packaging
- Shipping and storage
Because they are used in high volumes, even a modest increase in cost per unit can significantly impact overall spend.
Planning Ahead Can Protect Your Margins
Waiting until prices increase limits your options.
By planning ahead, businesses can:
- Secure inventory at current pricing
- Reduce exposure to future cost increases
- Maintain consistency in packaging operations
This is especially important for businesses entering high-demand seasons or managing large order volumes.
Secure Packaging at Current Pricing
At Paper Mart, we are closely monitoring market conditions and working to maintain competitive pricing as long as possible.
However, as raw material costs rise, adjustments across the industry are expected.
If your business relies on plastic packaging, now is a good time to evaluate your needs and consider stocking up on essential items like shrink bags and poly packaging.
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Final Thought
Cost increases in packaging are not always avoidable but they are often predictable.
Businesses that act early are better positioned to protect their margins, maintain operational efficiency, and avoid disruptions.