India’s brewers seek 15% price hikes as glass bottle costs jump 20% amid supply chain disruptions

INDIA – India’s brewers are seeking price increases of 12 to 15 percent as glass bottle prices have risen approximately 20 percent and paper carton rates have doubled due to gas shortages linked to the Iran war disrupting packaging supply chains.

The Brewers Association of India, representing Heineken, Anheuser-Busch InBev, and Carlsberg, warned of possible supply disruptions as gas shortages force glass bottle makers to partially or fully halt operations.

Vinod Giri, Director General of the association, explained that member companies have been advised to approach states individually for price approvals, as rising production costs are making some operations unsustainable.

By the Numbers: Packaging Cost Explosion

Glass bottle prices have surged approximately 20 percent, while paper carton rates have doubled. Labels, adhesive tape, and other packaging materials have also seen significant increases.

Nitin Agarwal, CEO of Fine Art Glass Works in Firozabad, reported that he has cut production by 40 percent due to gas shortages while increasing prices by 17 to 18 percent.

His factory supplies bottles to liquor, juice, and ketchup companies across India.

Aluminium can suppliers have also warned of possible reductions, adding another layer of uncertainty as India approaches peak summer demand for beer.

Market Context and Regulatory Hurdles

India’s beer market was valued at US$7.8 billion in 2024 and is expected to double to approximately US$15.6 billion by 2030. Heineken’s United Breweries accounts for roughly half the market, while AB InBev and Carlsberg each hold about 19 percent.

Since alcohol pricing is regulated, price increases require state government approval. Giri noted that companies may find it difficult to maintain supplies in states that do not allow price hikes, raising the prospect of localized shortages during peak demand.

Broader Industry Impact

The Confederation of Indian Alcoholic Beverage Companies has written to several states seeking price revisions.

The impact extends beyond alcohol, India’s bottled water market has seen price increases of about 11 percent due to rising costs of plastic bottles and caps.

What This Means for Packaging

The crisis underscores the vulnerability of India’s packaging supply chains to geopolitical shocks.

Glass bottle manufacturing relies heavily on natural gas for furnace operations, making it particularly exposed to energy market volatility.

With gas shortages persisting and aluminium supplies under pressure, packaging producers face difficult decisions about allocation and pricing. For brewers, the coming months will test their ability to balance cost pressures, regulatory constraints, and consumer demand.

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