India’s beverage and alcoholic drinks industry is increasingly turning to glass and PET bottles as a shortage of aluminium cans pushes up packaging costs and disrupts supplies. The situation has been linked to ongoing tensions in West Asia, which have affected aluminium prices, energy costs and international supply chains.
For Indian beverage companies, aluminium can prices have increased by at least 20%, making alternative packaging formats more attractive. Glass packaging suppliers are already witnessing higher enquiries and stronger order books, with demand building earlier than the usual festive-season cycle. Beer manufacturers, in particular, are seeking more glass bottles when cans are unavailable, while some beverage companies are shifting selected SKUs to PET and glass.
Industry executives said the dependence on aluminium cans has emerged as a significant supply-chain risk, particularly because India continues to rely on imports to bridge the gap between domestic can production and demand. According to Vinod Giri, director general of the Brewers Association of India, the West Asia conflict has delayed the commissioning of additional can-shell production capacity in India, keeping the country dependent on imported cans.
The disruption has also increased the cost of empty can shells by as much as 20%, driven by higher energy prices, global supply-chain challenges and the depreciation of the Indian rupee. Aluminium prices also climbed significantly during the period, adding further pressure on beverage manufacturers.
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The impact is particularly visible in products that are sold exclusively in cans. For example, the availability of aluminium cans for Diet Coke reportedly declined earlier this year, affecting the brand more severely than beverages that can also be sold in PET or glass bottles.
With India’s peak festive consumption season approaching, beverage companies are focusing on securing packaging materials well in advance. The main festive demand window is expected to begin in mid-October and run through Diwali on November 8. Industry executives believe that early planning of glass, PET, concentrates, production capacity and distribution requirements will be crucial to meeting seasonal demand.
West Asia, along with Sri Lanka, remains an important source of aluminium cans for India, while domestic manufacturers such as Ball Beverage Packaging and Canpack currently do not have sufficient capacity to meet the rising demand. The situation is therefore encouraging beverage companies to diversify their packaging mix and reduce their dependence on a single format.
The shift could also support the long-term growth of glass and PET packaging in India as manufacturers look for greater supply-chain flexibility amid global uncertainties.
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