India Brewers Face Supply Crunch Amid Iran War, Glass Bottle Prices Jump 20% & Beer Costs May Rise 12–15%

New Delhi: Global brewers operating in India are warning of supply shortages and possible price hikes as the Iran war disrupts gas supplies, according to a Reuters report. The shortage of natural gas has pushed up the cost of key materials like glass bottles and aluminium cans, affecting production.

Gas Disruption Raises Costs

India depends heavily on imported natural gas, with about 40 percent coming from Qatar. Iranian attacks have partly disrupted Qatar’s export capacity, tightening gas availability. Gas is crucial for running furnaces used in glass production, leading to supply issues for bottle makers.

As a result, glass bottle prices have increased by around 20 percent, while paper carton prices have doubled. Other packaging items like labels and tape have also become more expensive.

Production Cuts and Supply Risks

Several glass manufacturers have reduced or stopped production due to gas shortages. Nitin Agarwal, CEO of Fine Art Glass Works, said his factory has cut output by 40 percent and raised prices by 17–18 percent.

Aluminium can suppliers are also facing delays due to shipping issues, raising concerns ahead of the summer season when beer demand usually peaks.

Brewers Seek Price Hikes

The Brewers Association of India, representing companies like Heineken, AB InBev and Carlsberg, has asked for price increases of 12–15 percent, Reuters reported. Director General Vinod Giri said companies are approaching state governments individually for approvals.

India’s alcohol sector is highly regulated, and price hikes require approval from state authorities. Industry bodies have warned that supply may be affected in states that do not allow price increases.

Impact Spreads Across Industries

The crisis is also affecting other sectors. India’s bottled water market has already seen price increases of about 11 percent due to higher plastic costs. A senior executive at Lotte Chilsung Beverage told Reuters that the company has only about three months of plastic inventory left.

With rising costs and supply disruptions, experts say the situation could worsen if gas shortages continue, impacting multiple industries beyond alcohol.