Plastic Products Manufacturers NAICS 3261

Mar 27, 2026 - Rising Input Costs Hit Plastics Industry

• The Iran war is creating cost and demand pressures for plastic product manufacturers, particularly those tied to packaging, Packaging Dive reports. Rising oil prices are increasing the cost of petroleum-based resins, a key input for plastics, with even modest oil increases translating into higher per-pound production costs. Manufacturers are already receiving price hike notices from feedstock suppliers and facing higher transportation and logistics expenses due to disrupted shipping routes like the Strait of Hormuz. Additionally, inflation and geopolitical uncertainty are weakening consumer spending, which reduces demand for packaged goods and, in turn, plastic packaging. Supply chain disruptions are also tightening availability of raw materials, further complicating production planning. Overall, plastic product makers face a challenging environment of rising input costs, logistical disruptions, and softer demand, with the duration of the conflict determining whether these impacts remain temporary or become longer-term structural challenges.
• California’s attorney general has sued three plastic bag makers alleging they deceived consumers over whether the bags were ultimately recycled, The Wall Street Journal reports. The AG filed suit against Novolex, Inteplast, and Mettler, alleging violations of environmental marketing claims and false advertising and unfair competition laws, according to WSJ. Meanwhile, California is settling with four plastic bag producers: Revolution Sustainable Solutions, Metro Poly, PreZero US Packaging, and Advance Polybag, resolving allegations that they violated the same laws. As part of the settlement, the companies have agreed to halt plastic bag sales in California and collectively pay more than $1.75 million, per WSJ. California law has specific recyclability standards to reduce plastic pollution and waste: plastic bags are only allowed if they are recyclable, clearly labeled as such, and include instructions for consumers to recycle them.

• As of September 8, 2025 imports of polyethylene terephthalate (PET) and recycled PET (rPET) were subject to full tariffs, Plastics Today reports. Previously, the materials, used in packaging and fabrics, were exempt from the heightened tariffs. Now, reciprocal tariffs on PET and rPET range from 15% on Turkey to 35% for Canada, according to business intelligence organization ICIS. The Asia Pacific region faces tariffs in the 20% range and India could face tariffs as high as 50%, according to S&P Global. Over the last three years, the US rPET market has been overwhelmed by international supply, according to ICIS, and one domestic producer it cited said its PET sales volume has dropped 10% year-on-year. As a result of the reciprocal tariffs, imported flake prices could jump 8-10 cents per pound and imported pellets could soar as much as 10-14 cents per pound, per ICIS.
• Producer prices for plastic products manufacturers rose 1.5% in February compared to a year ago, after inching up 0.9% in the previous February-versus-February annual comparison, according to the latest US Bureau of Labor Statistics data. Following a steep rise in 2021 through mid-2022, producer prices for makers of plastic products have flattened despite rising sales. Employment by the industry shrank 0.8% year over year in January, while average wages at plastics and rubber product manufacturers continued to climb, up 4.9% over the same period to a new high of $26.37 per hour, BLS data show.