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According to the Chief Executive Officer and Managing Director of United Breweries Ltd, the Indian beer industry crisis has pushed beer production costs up by at least 15%.
The West Asia conflict could trigger Beer price rise in India (AI-generated image used for representation).
Beer Price India: The ongoing conflict in West Asia has intensified pressure on the Indian beer sector, triggering a sharp rise in input costs, supply disruptions and continued pricing restrictions. Vivek Gupta, Chief Executive Officer and Managing Director of United Breweries Ltd, said the situation has pushed the industry into what he described as an “Indian beer industry crisis”.
Gupta said the impact of the West Asia conflict has been severe, particularly due to higher costs and limited pricing flexibility. He warned that the sector is in “major trouble” as companies are unable to revise the Indian beer price without government approvals.
“The government has to come forward and support the domestic beer industry; otherwise, it will stall innovation. The impact on beer is disproportionately higher than any other industry,” he was quoted as saying by PTI.
He explained that brewers are facing multiple pressures at once, including rising costs of bottles and raw materials, currency fluctuations, and weak exports. “There is a significantly bigger impact of war on our industry because of cost increases on bottles, raw materials, (Indian rupee against) dollar not being great, exports getting hammered, which was a profitable business, supply shortages,” Gupta said.
A major concern for companies remains state-level regulation. Gupta noted that nearly 75 per cent of the sector is controlled through excise policies. “About 75 per cent of the business is regulated. We cannot even control pricing,” he said. He added that he has requested a 15 per cent increase in the beer price, stressing that it would apply to government pricing and not directly to consumers.
He also pointed out the heavy tax burden. In states such as Telangana, United Breweries receives about Rs 330 per case, while levies imposed by the government can go up to around Rs 1,400.
Supply-side issues continue to add to the strain. Gupta said shortages of beer cans remain unresolved despite policy interventions. “Aluminium prices are significantly increasing. Also, with the gas shortage, can manufacturers have declared force majeure and the local can manufacturers are saying that they will not be able to produce fully, plus importing cans have become very expensive because of aluminium prices…” he said.
To address these issues, United Breweries Ltd and Heineken are encouraging investments in domestic manufacturing, although new plants may take a few years to become operational.
Earlier, the government had extended the deadline for BIS certification on imported cans to ease shortages ahead of peak summer demand. This move was expected to provide temporary relief to beverage companies dealing with limited supply.
Gupta estimated that production costs have increased by at least 15 per cent due to the ongoing crisis. “Even if war stops today, there is still a minimum impact of six months,” he said.
Despite concerns over weather patterns, he remained optimistic about demand, noting that early summer conditions in some southern states have already boosted consumption. However, he stressed that rising costs remain the biggest hurdle for the industry.
“For me, the biggest challenge is the cost increase on suppliers like us, …either they (the government) give us a temporary price increase on our cost or give us some relief on their excise duties,” he said.
Gupta also warned that smaller breweries could face serious financial stress, which may lead to supply shortages in the market. “We do not have deep pockets… if we proactively work together with the government, we will be able to manage working capital and imports,” he said.
On consumer trends, he noted a shift in buying behaviour amid rising beer price today concerns. “People are going towards cans because the cash outlay is less. Wallet pressures are pushing smaller sizes and less consumption,” he observed.
Even so, the sector has recorded steady growth, with overall volumes rising 4.5–5 per cent over the past two years and value growth at 7–8 per cent, indicating continued demand despite ongoing challenges.
April 19, 2026, 5:02 PM IST
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