Balloon businesses turn to alternative products as helium prices increase amid shortage
The price of helium, a finite resource, has more than tripled, businesses said.
Misty Daydream staff preparing a helium balloon order.
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SINGAPORE: Balloon vendors in Singapore are turning to products that do not require helium, as prices for the gas soar amid a looming shortage.
This is even as demand for helium-filled balloons, which are commonly used for occasions like birthday parties, weddings and proposals, continues to rise.
Over the last year, the price of helium has been increasing by about 15 per cent every three to six months since late 2022, and now costs more than triple its pre-pandemic price.
Misty Daydream co-founder Tan Jia Jun said that one tank of helium gas now costs S$350 (US$261), up from S$90 in 2021.
One tank holds about 47 litres of helium and can typically be used to fill about 350 11-inch latex balloons.
Mr Tan said that his party business raised prices late last year, meaning customers have to fork out more.
“When we did a quarterly check, we found out that for helium balloons, we were selling at S$1.50 (per balloon), it's not sustainable for us. So our prices have increased from S$1.50 to S$1.80,” he said.
He said that his suppliers pointed to the Russian invasion of Ukraine as one of the reasons for the increase in prices. The two countries used to supply the gas, but now, the supply comes from the United States.
Despite the higher price tag, sales for helium-filled balloons have nearly doubled at Misty Daydream since last year. The shop now goes through each tank more quickly - in a week, instead of 10 days.
Helium balloons make up 70 per cent of his business, Mr Tan said.
HELIUM SHORTAGE
Helium is getting expensive because it is a finite resource underneath the earth's crust. Some scientists say the gas could run out as early as in 25 years’ time.
Sellers say it could last 50 years.
Hydrogen, another gas that can be used to fill balloons, is cheaper but not a viable option, as it can cause balloons to burst into flames easily and is not allowed for such use in Singapore.
The uncertainty in helium supply means balloon shops are bringing in more products that do not need helium, such as gift boxes for occasions such as gender reveals and building more complex structures.
They are hoping these alternatives catch on so they can manage their supply and costs.
ALTERNATIVE PRODUCTS
For instance, WoW! Let’s Party has brought in air-filled Chinese New Year balloons this year, instead of the usual helium ones.
So far, more than 50 have been sold.
Customers prefer the lower price, said the firm’s director Joe Lim. A helium balloon bundle typically costs S$39.90 while the air-filled product costs less than half the price.
He added that customers are open to other products, especially if they can achieve a similar effect as helium balloons.
The business is also looking for other ways to manage the situation. This includes using a smaller proportion of helium.
“Instead of adding the higher percentage of helium that probably can float a longer time, there will be a mix of gases that's within the balloon,” said Mr Lim.
“One of the things that my manufacturers are doing is that they are working on the material of the balloon to make it thinner, so that it is lighter. So with less content of the helium, it will still have the same floating time,” he added.
Still, Mr Lim is not taking any chances. He has a stash of 30 helium tanks, just in case suppliers run out of gas.
For now, how much longer global helium stocks can last remains up in the air.
