Indian beverage manufacturers are facing a severe shortage of aluminium can sheets, forcing companies to cut production during peak summer demand [1, 2].
This shortage disrupts the supply of popular soft drinks and beers during India's hottest months, potentially impacting revenue for global giants and domestic brewers as they struggle to meet consumer needs.
The crisis hit peak levels during June and July 2024, as temperatures in several parts of the country crossed 45 °C [1, 2]. This extreme heat drove a surge in demand for cold beverages and beer, which increased by roughly 20% compared with the previous month [2].
To manage the deficit, companies including Coca-Cola India and PepsiCo India have shifted a significant portion of their volume to PET and glass bottles [1, 2]. A senior executive at Coca-Cola India said, "We are seeing a severe shortage of aluminium cans, which is forcing us to shift a large part of our volume to PET bottles and glass" [1].
The shortage stems from a combination of domestic and global factors. While some reports emphasize the unprecedented surge in domestic demand during the hot summer, others point to international supply chain failures [1, 3]. A retail analyst in Delhi said the current crunch is directly linked to the fallout from the Iran-Ukraine war, which has tightened global aluminium supplies [3].
Consumers have noted the impact on availability. Ishika Gupta said, "I can't imagine a summer without my Diet Coke – the can shortage has turned it into a rare luxury" [2].
“The can shortage has turned it into a rare luxury”
The situation highlights the vulnerability of India's beverage industry to both climate volatility and geopolitical instability. By relying on a global supply chain for aluminium, manufacturers are exposed to conflicts far from their home market, while simultaneously facing localized demand spikes caused by extreme weather. The forced shift to PET and glass may also complicate sustainability goals as companies move away from highly recyclable aluminium.
