Beer industry faces shortage of aluminium cans

New Delhi: The domestic beer industry, which has been facing an acute shortage of aluminium cans and fearing an impact on growth trajectory, has urged the government for a 'short-term regulatory relaxation' in quality control norms to ensure uninterrupted supply from overseas. The beer industry is facing an annual deficit of 12-13 crore units of 500 ml cans, which account for almost 20 per cent of total beer sales in the country, and it may also lead to a shortfall of around Rs 1,300 crore in government revenues, according to the Brewers Association of India (BAI). Aluminium cans were brought under the ambit of mandatory BIS (Bureau of Indian Standards) certification by the government from April 1, 2025, through a quality control order (QCO), which has resulted in short-term supply problems for beer as well as other beverage packaging industry in the country.

Key aluminium can suppliers, BALL Beverage Packaging India and Can-Pack India, have already exhausted their domestic capacity at their manufacturing units in India and have conveyed that they will be unable to increase supply for at least another 6-12 months, until new production lines are added. Besides, due to the QCO, the beer industry cannot import cans from foreign vendors as the BIS certification could take several months, creating a risk of supply disruption.

BAI, which represents three leading beer makers -- AB InBev, Carlsberg, and United Breweries -- together accounting for 85 per cent of beer sold in India, has approached the government seeking a relaxation in QCO norms for a year.

Recently United Breweries Ltd (UBL) Managing Director and CEO has also flagged this issue.