Aluminium can shortage hits Indian beverage makers during peak summer demand

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Beverage companies are facing a shortage of aluminium can sheets at a time when demand for soft drinks and beer has surged due to extreme summer temperatures across India.

Industry executives said some companies have reduced production, while others are increasing the use of PET and glass bottles to meet demand.

The shortage has been linked to India's dependence on imported aluminium can sheets. A large share of supplies comes from countries such as the UAE and Saudi Arabia, and recent shipping disruptions in West Asia have added to supply pressure.

Industry sources said import delays related to Bureau of Indian Standards (BIS) requirements had already affected supplies earlier this year before the situation worsened.

The issue has also highlighted a gap in India's aluminium industry. The country is one of the largest aluminium producers but domestic production of can sheets are limited, forcing beverage manufacturers to rely on imports. 

Companies are now looking to increase the local supply. In 2025, the Indian arm of Ball Corporation announced a USD 60 million expansion of the Sri City plant in Andhra Pradesh to increase can-making capacity.

Meanwhile, Hindalco Industries is expanding can sheet production at its Aditya facility in Sambalpur, Odisha. The project is expected to add around 50 kilotonnes of capacity.

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Satish Pai, Managing Director and CEO of Hindalco Industries, said the additional production would help ease shortages in the coming years.

Demand for aluminium cans has been rising as beverage companies introduce more premium drinks and low-sugar products. Beer makers have also increased the use of cans across several product categories.

According to IMARC Group, demand for aluminium cans in India reached 44.78 billion units and is growing at around 5 per cent annually. The market is projected to approach 68 billion units by 2034.

Several beverage companies said the shortage has already affected operations.

One industry executive said production had been reduced because of the limited availability of cans during the strong summer season.

Some companies have shifted products into PET and glass packaging, while others have adjusted pricing to offset higher packaging costs.

Beer makers have also reported stronger demand for glass bottles as consumers switch to alternative packaging formats when canned products are unavailable.

Industry executives expect the pressure to ease as summer demand slows and additional domestic supply comes on stream.

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