India: Can shortage hits beer as stock reaches a ‘supply cliff’
The aluminium can shortage is reported to be about to cause a potential ₹11,500 crore (£900k) disruption as stock from major Indian suppliers falls to just 10–20% of normal capacity, The Drinks Business (db) reported on April 28.
According to Hindu Businessline, supplies from the main manufacturers in the market Ball and Canpack have fallen “sharply” with the impact creating a deficit of aluminium cans in a crisis that is set to affect domestic supply.
The situation follows a global aluminium price spike of around 47–50% year-on-year to approximately US$3,600 per tonne, sharply raising import costs across India which is now fast-becoming dependent upon getting cans from overseas. India’s drinks industry recently secured a government delay to new quality certification rules for aluminium cans amid all of the rising fears of severe supply shortages. at the start of the year, producers already warned that limited domestic capacity and import bottlenecks could disrupt peak summer sales.
Additionally, the Federation of European Business in India asked India to temporarily axe 10% of import duties on key packaging materials, warning of potential shortages linked to disruption from the US-Iran conflict.
Local reports have revealed that store shelves across Mumbai, Bengaluru, and Pune are thinning and that retailers are now showing “visible gaps in high-demand categories, including canned beers” with the industry now “approaching a supply cliff as pre-disruption inventory runs out”.
The issues, which are being driven by input costs, disrupted imports, and regulatory constraints, are now said to be leaving India’s supply chain in a precarious position with the supplier Canpack hinting that while production exists, moving material into India has become increasingly difficult.
A spokesperson for Canpack said: “There is production, but getting it into India is a challenge right now. We are trying to manage through imports, but timelines are uncertain. We don’t know when the situation will stabilise.”
Canpack supplies United Breweries, Carlsberg and AB InBev and now, according to the spokesperson, are also additional complexities since the most popular drinks can sizes in India are 250 ml, 330 ml/350 ml (standard/sleek), and 500 ml (tallboy).
The spokesperson outlined that while 330ml/350ml is commonly used for soft drinks, the 500ml cans are still widely used for beer and energy drinks and noted that the 250ml canned format had also been rising in popularity for functional drinks.
The spokesperson explained: “With raw material constraints, can makers prioritise larger pack sizes for beer over smaller, more complex formats.”
Local reports on the topic are shining a light on the fact that the industry is currently being protected by a production cycle that is about to expire, however, the reports also warned that the cans that are in circulation were actually manufactured in January–February, before the disruption fully hit and so it is only a matter of time until the situation becomes more urgent.
One senior retail executive told local press that “some products are not always available, especially in key canned categories. Supply is coming, but not consistently”.
Describing the situation at present, All India Consumer Products Distributors Federation (AICPDF) national president Dhairyashil Patil confirmed that: “much of the stock currently available in stores reflects pre-disruption inventory”.
According to reports, beer brands such as Kingfisher, Budweiser and Tuborg are about to hit a “supply cliff” if the inventory runs out over the next few weeks.
Plus, Latambarcem Brewers (LBB) co-founder and chief production officer Anish Varshnei told reporters: “Cans are easier to transport, there’s less breakage, and margins are better across the supply chain” and so “distributors are asking specifically for 500ml cans over 650ml bottles as the margins are better in cans and liquid less making customers ask for more .”
Varshnei pointed out that because of the low stocks, companies are scrambling to secure supply and admitted that some smaller breweries are managing this by looking at imports from China, Korea, and Vietnam, while larger brewers with rigid supplier approvals have far less flexibility.
Varshnei warned that there is “going to be a ripple effect” and admitted that “this summer is going to be very difficult”.
Normal packaging inventory levels of 50–60 days are now reportedly running at 20–30 days as companies drain stocks while imports from China, Sri Lanka, Vietnam, and Korea require upfront payment.
United Breweries MD Vivek Gupta noted that the shortage is already being gauged for how it will impact growth and admitted that there is no immediate resolution in sight.
Varshnei added: “Packaging itself accounts for about 35% of revenues for brewers, so any disruption hits margins directly. At best, it will take close to a year for supply to normalise. Right now, we are just fighting for survival.”
db has reached out to major breweries across India to find out how the supply chain issues are affecting their businesses and ways they are planning to navigate the shortages and increased demand for cans across the market.
28 April, 2026
