Beverage Industry Ramps Up Imports from Sri Lanka and UAE Ahead of Holi Amid Aluminium Can Shortage

As North India battles the winter chill, India’s soft drink and beer industry is already preparing for the upcoming summer and the Holi festival in March. With demand for aerated drinks and alcoholic beverages set to rise, manufacturers are rushing to secure aluminium cans, which have become scarce domestically.

Second Consecutive Year of Can Shortage
India’s domestic production capacity for beverage cans is limited, making imports a necessity. Last year, restrictions on can imports created a shortage, affecting the packaging of soft drinks and beer. With Holi just one and a half to two months away, beverage companies have doubled their imports from Sri Lanka and the UAE to ensure adequate supply.

Why the Shortage?
Vinod Giri, Director General of the Brewers Association of India (BAI), explained that from April 2025, the Quality Control Order (QCO) for beverage cans came into effect. Aluminium cans now require BIS certification, and only companies whose plants have been inspected by the Bureau of Indian Standards can import cans. The certification process checks material composition, lid design, dimensions, seam strength, pressure resistance, leakage prevention, chemical stability, and coating standards. It typically takes about a year to complete.

Growing Demand for Cans in India
Changing lifestyles and increasing beverage consumption have fueled demand for canned drinks. Currently, 25% of all soft drinks and beer sold in India are in cans, a share that has doubled in two years. Cans are considered more attractive, convenient, and recyclable compared to glass or PET bottles.

Beer Dominates in Cans
About 85% of beer sold in India comes in cans, with only 15% in bottles. Even freshly brewed beer sold in bottles in some major cities accounts for a small fraction. Last year, beer manufacturers sold approximately 120-130 million units of 500 ml canned beer.

Industry’s Request to the Government
The beverage industry has requested that the government allow import exemptions for 500 ml cans from countries such as Germany, Thailand, Poland, and Indonesia for the next year, similar to earlier years. They have also sought a one-year deferment of certification requirements for imported cans to ease supply pressures. Currently, about 20% of metal cans used by cola and beer manufacturers are imported.

Domestic Manufacturers Unable to Meet Demand
Domestic producers such as Ball Beverage Packaging India and Can-Pack India have already reached maximum production capacity in their Indian plants. They have indicated that they cannot increase supply for at least 6-12 months and new production lines will take time to come online.

As Holi approaches, beverage makers are acting early to ensure that consumers can celebrate with their favorite drinks, despite ongoing supply constraints.