India's beer lovers may have to pay more or face empty fridges this summer. Major brewers operating in the country are warning that a gas crunch linked to the conflict in the Middle East is raising costs for key packaging materials and slowing production.

What is happening

Gas shortages tied to attacks in the region have tightened supplies from major exporters, including Qatar, which supplies about 40 percent of India's imported natural gas. That fuel is essential to run furnaces at glass factories and to keep production lines moving for cans and bottles.

Packaging pain points

  • Glass bottles: The Brewers Association of India says glass prices have jumped by roughly 20 percent.
  • Paper cartons: Rates have reportedly doubled.
  • Other inputs: Labels, tape and related materials are also more expensive.
  • Aluminium cans: Suppliers warn of possible cutbacks and shipping delays for aluminium, which threatens can availability just as beer demand rises in summer.

Factories are feeling it

Some glass makers have partially or completely halted operations because they cannot secure enough gas. Nitin Agarwal, CEO of Fine Art Glass Works in Firozabad, says his plant has cut output by about 40 percent and raised prices by 17 to 18 percent. Those clients include beer makers plus juice and ketchup producers.

Brewers respond

The Brewers Association of India, which includes big names such as Heineken, Anheuser-Busch InBev and Carlsberg, has asked for price increases in the range of 12 to 15 percent to cover rising costs. The association's director general, Vinod Giri, said brewers have been advised to approach state authorities individually for approvals.

India tightly regulates alcohol pricing and retail increases usually need sign-off from states. Around two thirds of the country's 28 states must approve any change, and the association warned that states refusing permission could face supply shortfalls.

Market snapshot

  • The beer market was worth about $7.8 billion in 2024.
  • Research group Grand View Research expects the market could double by 2030.
  • Heineken accounts for roughly half of the market, while AB InBev and Carlsberg each hold about 19 percent.
  • Smaller domestic brands such as Bira and Simba also compete in the market.

Wider consequences

The squeeze is not limited to alcohol. Bottled water producers have already raised prices by around 11 percent because of higher plastic bottle and cap costs. A senior executive at Lotte Chilsung Beverage said their firm has about three months of plastic inventory on hand but called the situation "serious."

In short, higher fuel and logistics costs are ricocheting through packaging supply chains. Brewers warn production is becoming unsustainable at current rates without price relief or steady gas supplies.

Short version: gas disruptions in the Middle East are lifting packaging costs in India, forcing some glass factories to cut output and pushing brewers to seek price hikes. That could lead to higher beer prices and localized shortages during peak season.