• Source:JND

The 30-day ongoing war between the United States, Israel and Iran has induced not just the current energy crisis and oil shortage but also enormous disruption of supply chains, leading to rising prices for virtually all types of goods, from plastic and cosmetic products to food and alcoholic beverages.

Even though India is located thousands of miles from the fighting, it is becoming increasingly affected by these wars. India is dependent on many of the Gulf states for natural gas, and the ongoing wars have caused considerable damage to these countries' ability to supply gas to India.

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Because of India's dependence upon the Gulf states for natural gas, Indian brewers have alerted their customers that they may experience difficulties fulfilling their beer orders because of the ongoing gas supply issues.

How the ongoing crisis impacts the Liquor Market

The glass industry in India has been facing ongoing disruptions in supply chain operations, causing several producers to cut back or shut down their production, contributing to an approximate 20 per cent increase in glass bottle prices, according to the Brewers Association of India, whose members include major global beer manufacturers such as Heineken, Anheuser-Busch InBev, and Carlsberg.

There have been disruptions to the logistics of delivering aluminium as well. The increased prices for packaging materials such as cartons, labels, and tapes continue to increase total costs

There is no clear timeline on when this will be resolved, and continued supply constraints on Indian beer manufacturers come at the worst possible time, with the peak summer months approaching, when demand for beer will rise substantially

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"We are asking for price increases in the range of 12-15 per cent. We have advised our member companies to individually approach states," Reuters quoted Vinod Giri, director general of The Brewers Association of India.

The growth of India’s liquor industry has occurred steadily due to the effects of urbanisation and higher disposable income available to work with. The liquor market was valued at USD 7.8 billion (Rs 73,800 crores) in 2024 and is estimated to again double in size by 2030, as forecasted in Grand View Research.


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