India’s Beverage Makers Face Can Shortage

India’s beverage makers are rushing to secure packaging as a shortage of aluminum can sheets hits the market during the peak summer sales period, forcing some companies to cut production and shift more volume into PET bottles and glass.

The squeeze has come at a time when demand for soft drinks, beer and other packaged beverages is rising sharply because of hot weather across much of the country. Manufacturers say they are trying to keep shelves stocked, but the lack of can stock has made that harder and more expensive.

The shortage is affecting both large national brands and smaller regional producers. Companies that had planned to lean on cans for summer sales are now diverting output to plastic and glass containers, which are easier to source in some cases but do not always fit the same product mix or distribution plans. For beer makers in particular, the problem matters because cans are widely used for convenience, transport efficiency and shelf appeal in modern retail channels.

Industry executives said the bottleneck is tied to limited domestic supply of aluminum can sheet, which has tightened just as beverage demand has climbed. Some firms have reduced production runs rather than risk running out of packaging material. Others are trying to import more supplies or rework their packaging strategy for the season.

The shortage also raises costs. Switching from cans to PET or glass can change freight expenses, storage needs and filling-line requirements. It can also complicate compliance, since packaging materials must meet Indian standards before they can be used at scale. That has added another layer of delay for companies trying to respond quickly.

Several domestic firms are now planning capacity expansions to increase can sheet production over time, but those projects will not solve the immediate problem. For now, beverage makers are focused on getting enough packaging to meet summer demand without losing sales in a season that often determines a large share of annual revenue.

The pressure comes as India’s beverage market continues to grow, with beer and other drinks competing for limited shelf space and cold-chain capacity during the hottest months. Companies say they are watching inventory closely as they try to balance demand, packaging availability and pricing in a market where even a short disruption can quickly affect sales.