India's Beer Industry Braces for Shortages Amid Iran-Related Disruptions

Global Brewers in India Warn of Price Increases and Supply Disruptions

India's Beer Market is facing a crisis due to a shortage of gas caused by the Iran war, which is driving up the cost of glass bottles and shipping delays are hitting imports of aluminium needed by can makers. As a result, glass bottle prices have surged around 20%, while paper carton rates have doubled, and other packaging materials such as labels and tape have also increased.

India, the world's fourth-largest importer of natural gas, relies heavily on the Middle East for shipments, sourcing about 40% of its supply from Qatar. Iranian attacks have partially disrupted Qatar's export capacity, tightening gas availability for Indian manufacturers. Glass bottle makers have been forced to partially or fully halt operations due to the shortage, and aluminium can suppliers have warned of possible reductions.

The Brewers Association of India, representing global brewers Heineken, Anheuser-Busch InBev, and Carlsberg, has asked for price increases in the range of 12-15%. The association's director general, Vinod Giri, has advised member companies to individually approach states, as the rising cost of production is making some operations unsustainable.

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Heineken's India unit, United Breweries, Anheuser-Busch InBev, and Carlsberg did not respond to Reuters queries. The beer market was worth $7.8 billion in 2024 and is expected to double by 2030, according to Grand View Research. Heineken accounts for roughly half the market, while AB InBev and Carlsberg each account for 19%.

Glass and Plastics Industry Crisis

The shortages have already affected India's $5 billion bottled water market, with some producers increasing prices by 11% due to rising rates of plastic bottles and caps. Fine Art Glass Works, a glass-making factory in Firozabad, has cut production by 40% due to gas shortages. The company's CEO, Nitin Agarwal, has increased prices by 17-18%.

The crisis is also affecting other industries, with Lotte Chilsung Beverage, a leading South Korean soft drinks company, having up to three months of inventory for plastic bottles and plastic materials. The situation is "serious," according to an executive at the company.

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