With temperatures soaring above 45 degrees Celsius in India, residents are bracing for intense heat. However, India’s $6 billion bottled water industry is currently facing significant challenges due to raw material shortages. Last month, leading company Bisleri announced an 11 percent price hike, increasing the cost of a 12-pack of one-liter bottles by 24 rupees. Other companies such as Bailey’s and Clear Premium Water have also raised prices. According to a study by Data for India, 15 percent of urban households and 6 percent of rural households depend on bottled water, making it an expensive option especially for rural consumers.
Access to clean water remains a major challenge across many parts of India, with issues stemming from water scarcity, pollution, and inadequate infrastructure. Industry leaders and bottle manufacturers warn that if the ongoing war in Iran persists, rising fuel prices could further increase bottled water costs. Approximately 20 percent of the world’s crude oil and liquefied natural gas are transported via the Strait of Hormuz shipping route, which Iran has currently closed off completely, impacting global fuel prices.
Why might the price of drinking water continue to rise? Vijay Singh Dubal, president of the Maharashtra Bottled Water Manufacturers Association, attributes the increase to higher crude oil prices driving up the cost of plastic bottles. This week, Brent crude oil prices hit $119 per barrel, marking the highest level since the US and Israel initiated conflict against Iran. Crude oil is a key raw material used to produce polyethylene terephthalate (PET) resin pellets for plastic bottles. Dubal explained, “The price of preforms has risen from 115 rupees per kilogram to nearly 180 rupees.”
Glass bottle manufacturers are also feeling the impact of the war. Last month, the Brewers Association of India, representing major breweries like Heineken and Carlsberg, reported a 20 percent increase in glass bottle prices. Indian liquor producers have petitioned state governments for price hikes in response. Companies such as Vitrum Glass cite fluctuations in natural gas prices as a driving factor behind the rising cost of glass bottles. An industry insider stated, “The situation is very fragile. Even a slight disruption in the supply of essential commodities like water and medicine has a huge effect.”
