Due to a shortage of cans, Indian beer companies are turning to PET and glass bottle packaging
This summer in India has been exceptionally hot, with temperatures exceeding 45 degrees Celsius in many parts of the country. The demand for cold drinks and beer has surged, and at this time, there is a shortage of cans, which has dealt a heavy blow to beverage companies.
Shortage has forced some companies to reduce production, use more PET and glass bottles, and find other ways to meet demand.
Industry executives have stated that this issue has become even more severe this summer as India heavily relies on imports of aluminum can sheets with easy to pull lids. Most of these boards come from countries such as the United Arab Emirates and Saudi Arabia, and the shipping uncertainty related to the tense situation in West Asia exacerbates this pressure.
The shortage of aluminum materials has also exposed greater structural defects. India is the world's second largest aluminum producer after China, but its production of processed aluminum products such as aluminum cans is insufficient. Therefore, beverage companies still heavily rely on importing key raw materials for canned beverages.
Industry executives stated that earlier this year, import delays had already affected supply due to requirements from the Bureau of Indian Standards. The situation in West Asia has worsened the situation.
Domestic Indian companies are trying to fill this gap.
In 2025, Ball Corporation India announced an investment of $60 million to expand its factory in Sri City, Andhra Pradesh, to enhance its tank manufacturing capabilities.
The largest aluminum producer in India, Hindalco Industries, is expanding its tank plate production line at its Adiya factory in Sambalpur, Odisha. This expansion is expected to add approximately 50000 tons of tank plate production capacity.
According to Satish Pai, Managing Director and CEO of Aluminum India, the additional supply will ensure that the current shortage problem becomes a 'distant memory' over time.
As beverage companies sell more high-end and low sugar beverages (many of which are canned), the demand for canned beverages has also increased. Beer producers are increasingly using canned beer, especially in the mass market and mid price brands.
Aluminum cans are becoming increasingly popular because aluminum has high recyclability.
According to market research firm IMARC Group, the demand for aluminum cans in India has reached 44.78 billion units and is growing at a rate of approximately 5% per year. The report points out that driven by changes in consumer preferences and growth in beverage consumption, the demand for aluminum cans in the Indian market may approach 68 billion by 2034.
Shortage has already affected production.
A beverage industry executive said, "The shortage of aluminum cans this year is particularly severe because of strong sales and demand during the summer. As the summer gradually ends, the tight supply situation will gradually ease, but the current shortage problem is very serious, and we have to reduce production
In response to the shortage of cans, some companies are shifting more products to use PET and glass bottle packaging.
For a large bottled beverage manufacturer, the impact is limited because canned beverages account for a small proportion of their total sales.
After the quarterly financial report was released, a senior executive told analysts, "The impact is very minimal. We have locked in a considerable amount of inventory that is sufficient to meet market demand. Although prices are slightly higher, we will reduce market discounts accordingly wherever costs increase significantly. Currently, all suppliers are facing shortages and costs are rising. As long as demand is strong, we can ensure that overall profits are not affected
The executive added that when canned drinks are out of stock, consumers typically turn to PET or glass bottled drinks.
For beer producers, the shortage of cans has also created opportunities to sell more glass bottles.
The shortage of canned beer has always been a serious problem, especially during the peak sales season, but due to the continued hot summer, the demand for our small bottled beer remains strong. We are focusing on seizing this opportunity and increasing production efforts. We hope this problem can be resolved as soon as possible, "said a well-known beer company executive who requested anonymity.
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