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India's Thirst: Beverage Can Shortage Looms
12 Jan
Summary
- Beverage makers are doubling imported can orders due to rising demand.
- New BIS certification rules delay domestic and imported can production.
- India's aluminium beverage can market is projected to double by 2032.
As summer approaches, India is experiencing a significant shortage of aluminium beverage cans, impacting the supply of popular drinks like Coca-Cola and Kingfisher. Manufacturers are escalating imports from regions like West Asia and Sri Lanka to meet a projected double-digit growth in consumer demand.
This scarcity stems from regulatory hurdles, specifically new Bureau of Indian Standards (BIS) certifications introduced in April last year. These stringent quality control measures, requiring compliance with technical standards for material composition, lids, and coatings, have led to prolonged certification processes, including overseas plant inspections, causing substantial delays for both domestic and international suppliers.
Industry executives note that cans now constitute over 25% of annual soft drink and beer sales, a figure that has doubled in two years. Despite these challenges, the market is expected to see significant growth, with India's total aluminium beverage can market anticipated to reach $800,000 million by 2032. Beer makers have requested a one-year postponement of certification requirements for imported cans to avoid a projected shortfall of 120-130 million units.
