India faces Aluminium can shortage ahead of peak summer demand

64

Synopsis

An aluminium can supply crunch threatens beverage makers as summer demand rises across India.

Article

India is heading into peak summer with a growing shortage of aluminium cans, raising concerns for beverage and FMCG companies that rely heavily on canned packaging during high-demand months.

Industry executives warn that limited domestic capacity and rising global aluminium prices are straining supply chains just as demand for soft drinks, energy drinks, and beer begins to surge. The situation has been exacerbated by higher imports, longer lead times, and increased competition for raw materials.

According to the Aluminium Association of India, domestic can manufacturing capacity has not kept pace with consumption, which has grown at over 15% annually in recent years. Beverage companies have increasingly shifted from plastic to aluminium due to sustainability goals and consumer preference, intensifying pressure on supply.

“The demand curve has moved faster than capacity expansion,” said an executive at a leading packaging supplier, speaking on condition of anonymity. “Summer is when the gap becomes most visible.”

Several beverage brands are already rationing can usage or prioritising key SKUs, while others are reverting temporarily to alternative packaging formats. Smaller players, with less negotiating power, are expected to feel the impact first.

The shortage highlights a structural vulnerability in India’s packaging ecosystem. Without rapid investment in local can manufacturing and recycling infrastructure, supply disruptions could become a recurring seasonal risk.

As summer demand peaks, companies are being forced to balance sustainability commitments with operational realities — underscoring how packaging has become a strategic bottleneck, not just a cost input.