Key facts
- Japanese companies expect a slow return to pre-conflict supply chain norms.
- Nearly half of Japanese firms believe it will take over six months to normalize operations.
- Firms cite deep-seated supply chain damage and oil procurement concerns.
- Companies anticipate prolonged higher prices and stripped-down packaging.
- Japanese beverage companies are developing coffee alternatives.
- Climate change threats to global coffee bean supply are a primary driver for developing alternatives.
- Companies anticipate a potential coffee supply crisis.
- Coca-Cola and Asahi Soft Drinks are developing coffee alternatives.
Japanese businesses are bracing for a protracted period of recovery and elevated costs in the wake of the U.S.-Iran peace deal. Many firms anticipate that it will take more than six months to return to pre-conflict supply chain operations. This outlook stems from concerns over persistent supply chain disruptions and the ongoing challenge of securing oil supplies. Consequently, companies are preparing for prolonged periods of higher prices and are considering implementing stripped-down packaging to mitigate costs. The sentiment among these firms indicates a recognition of deep-seated damage to global supply chains that will require significant time to mend.