Beverage Makers Face Challenges Amid Peak Summer Sales Amid Severe Can Shortage

Aluminium Can Sheet Shortage Hits Beverage Companies Amid Summer Demand Surge

A severe shortage of aluminium can sheets has affected beverage companies in India as the country experiences an unusually harsh summer. Temperatures have crossed 45 degrees Celsius in several parts of the country, leading to a surge in demand for cold drinks and beer.

The shortage has forced some companies to reduce production, increase their use of PET and glass bottles, and explore alternative methods to meet demand. Industry executives point out that India's reliance on imports of aluminium can sheets has exacerbated the problem. Much of this supply comes from countries such as the UAE and Saudi Arabia, and shipping uncertainty linked to tensions in West Asia has added to the pressure.

India is the world's second-largest producer of aluminium, but it does not produce enough processed aluminium products, including can sheets. As a result, beverage companies continue to rely heavily on imports for a product that is crucial to canned drinks. Import delays linked to Bureau of Indian Standards requirements had already affected supplies earlier this year, and the West Asia situation has made matters worse.

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Domestic companies are trying to fill the gap. In 2025, the Indian arm of Ball Corporation announced a $60 million expansion at its Sri City facility in Andhra Pradesh to increase can manufacturing capacity. Hindalco Industries, India's largest aluminium maker, is also expanding production of can sheets at its Aditya plant in Sambalpur, Odisha. The expansion is expected to add around 50 kilotonnes of can sheet capacity.

According to industry estimates, the demand for cans has grown as beverage companies sell more premium and low-sugar drinks, many of which are sold in cans. Beer makers have also been using more cans, especially for mass-market and mid-priced brands. Cans are increasingly preferred because aluminium is highly recyclable.

Market research firm IMARC Group estimates that India's aluminium can demand reached 44.78 billion units and is growing at around 5% a year. The market could reach nearly 68 billion units by 2034, driven by changing consumer preferences and rising beverage consumption.

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The shortage is already affecting production. Companies are shifting more products to PET and glass bottles to deal with the shortage. For one large bottler, the impact has been limited because cans account for a small part of total sales. The company has tied up a reasonable quantity of cans to meet its volumes and has increased prices to offset the costs.

Some beverage companies have also launched glass bottle variants in select markets because of the shortage of canned products. For beer makers, the shortage has created an opportunity to sell more glass bottles. The shortage of cans has been particularly harsh this year, but demand has been robust for pint-sized glass bottles.