Iran War Disrupts India's Booming Bottled Water Market

The Iran war exacerbates supply chain issues, disrupting India's $5 billion packaged water industry. Smaller manufacturers raise prices due to rising costs for plastic bottles, caps, and packaging, which may soon hit retail prices. The premium bottled water segment faces similar pressures, affecting consumer costs.

The ongoing Iran war is causing significant supply chain disruptions in India's $5 billion packaged water market, as manufacturers grapple with increasing costs. The situation intensifies as the sweltering summer season approaches, posing challenges for one of the world's fastest-growing bottled water markets.

As supply disruptions linked to the war drive up costs for essential materials such as plastic bottles, caps, labels, and cardboard boxes, smaller manufacturers are increasing prices for distributors, a situation that is yet to fully impact retail consumers. More than 2,000 smaller bottled water manufacturers have already adjusted rates, with a 5% hike expected to rise further in the coming days, according to the Federation of All India Packaged Drinking Water Manufacturers' Association.

Apurva Doshi, the federation's secretary general, highlighted that rising oil prices have significantly impacted polymer costs, a key material for the industry's plastic bottles. As prices for caps and packaging materials surge, the clean water industry, crucial for a country with 70% groundwater contamination, faces mounting pressures. Major industry players like Bisleri, Coca-Cola's Kinley, and others are competing to maintain their hold on the $5 billion market amid soaring costs and a growing premium water segment.

(With inputs from agencies.)