NEW DELHI, India: Beer makers in India are warning of potential supply shortages and price increases as the war in Iran disrupts gas supplies and drives up costs for key packaging materials.

The Brewers Association of India said rising input costs and supply constraints are affecting glass bottle production and aluminium can availability, just as demand is set to rise during the summer season.

India is particularly exposed to the disruption as the world's fourth-largest importer of natural gas, with about 40 percent of its supply sourced from Qatar. Iranian attacks have partially disrupted Qatar's export capacity, tightening gas availability for Indian manufacturers.

Gas is a critical input for glass production, and shortages have forced some manufacturers to scale back or halt operations. At the same time, shipping delays are affecting imports of aluminium used by can makers.

The Brewers Association, which represents major global players including Heineken, Anheuser-Busch InBev, and Carlsberg, said glass bottle prices have climbed by around 20 percent, while costs for paper cartons and other packaging materials, such as labels and tape, have also surged.

"We are asking for price increases in the range of 12 to 15 percent," the association's director general, Vinod Giri, told Reuters. "We have advised our member companies to individually approach states."

He added that rising costs are making some operations financially unsustainable.

India's beer market, valued at US$7.8 billion in 2024, is projected to double by 2030. While large brewers dominate the sector, smaller brands such as Bira and Simba also operate in the market.

The pressure is being felt across the broader alcohol industry. The Confederation of Indian Alcoholic Beverage Companies said it has written to several states seeking approval for price increases to offset higher logistics and input costs.

Because alcohol pricing is regulated in India, brewers require approval from state governments to raise retail prices, and about two-thirds of the country's 28 states must agree to any changes.

"Brewers may find it difficult to maintain supplies in states that do not allow price increases," the association said.

Suppliers are already cutting output. Nitin Agarwal, CEO of Fine Art Glass Works in Uttar Pradesh, said his factory has reduced production by 40 percent due to gas shortages. "We've cut production and increased prices by 17 to 18 percent," Agarwal said.

The impact is spreading beyond alcohol. India's bottled water sector has also seen price increases, with some producers raising prices by 11 percent due to higher costs for plastic bottles and caps.

Industry executives warn that the situation could worsen if supply disruptions persist. A senior executive at a South Korean beverage company said it currently has only a few months' worth of inventory for plastic materials. "The situation is serious," he said.

With peak summer demand approaching, brewers say prolonged shortages could strain supply chains further and lead to higher prices for consumers.