Around 6% of households rely on bottled water.
India is bracing for extreme summer heat, with temperatures forecast to cross 45°C across several regions in the coming weeks.
At the same time, the ongoing US–Israel–Iran conflict is disrupting global oil and gas supplies, creating ripple effects across India’s $6 billion bottled water industry.
Consumers and manufacturers are now grappling with soaring input costs, raising concerns over widespread price hikes during peak summer demand.
The dual crisis is unfolding as India enters its hottest months between April and June, when heatwaves intensify, and water consumption rises sharply.
This seasonal surge in demand is now colliding with global supply chain disruptions linked to tensions around the Strait of Hormuz.
Roughly 20% of global oil and LNG shipments pass through this critical route, making it highly vulnerable during geopolitical conflict.
As a result, global energy prices have surged, directly impacting industries reliant on crude oil and natural gas.
India’s bottled water sector, valued at approximately $6 billion, is among the first to feel the pressure.
Major brands have already implemented price increases, with Bisleri raising costs by 11% on a 12-pack of one-litre bottles.
Other companies such as Bailley and Clear Premium Water have also followed suit, reflecting a wider industry trend.
The reliance on bottled water remains significant, especially in urban India, where 15% of households depend on it for daily drinking needs.
In rural areas, around 6% of households rely on bottled water due to ongoing challenges with shortages, contamination and weak infrastructure.
At the heart of the crisis is a shortage of PET resin, the plastic used to manufacture water bottles.
PET, or polyethylene terephthalate, is derived from crude oil, making it highly sensitive to fluctuations in global energy markets.
With Brent crude prices reaching $119 per barrel, the cost of producing plastic bottles has surged dramatically.
This has forced nearly 20% of bottle manufacturing units in Maharashtra to temporarily shut down operations.
Vijaysinh Dubbal, President of the Maharashtra Bottled Water Manufacturers Association, warned that companies are currently absorbing costs, but the situation is unsustainable.
He noted that demand typically peaks in April and May, further intensifying the strain on already stretched supply chains.
The impact extends beyond bottled water, affecting India’s wider packaging industry, valued at $1.5 billion in 2024.
Experts predict this market could grow to $2.2 billion by 2033, but rising costs now threaten that trajectory.
Vaibhav Saraogi of Chemco Plastic Industries cautioned that higher PET prices will impact sectors including beauty, pharmaceuticals and food delivery.
Meanwhile, the alcohol industry is also facing mounting pressure due to rising packaging costs.
Glass bottle prices have surged by around 20%, driven by shortages in natural gas used for production.
The Brewers Association of India has requested state governments to approve a 12 to 15% increase in beer prices.
Similarly, the Confederation of Indian Alcoholic Beverage Companies has urged authorities to allow price revisions.
Glass manufacturers are struggling as natural gas supplies have been reduced following the global energy crunch.
Natural gas is essential for operating furnaces that melt raw materials into glass.
Vithob Shet, CEO of Vitrum Glass, revealed that supplies have been cut by around 20%, forcing companies to switch to more expensive oil alternatives.
He warned that rising costs could endanger the supply of essential goods such as drinking water and medicines.
Despite government assurances of stable energy supplies, several industries are already experiencing disruptions.
Restaurants in some regions have been forced to shut temporarily due to cooking gas shortages.
Ceramics and fertiliser sectors are also facing operational challenges, while aviation is dealing with soaring jet fuel prices.
These pressures are contributing to broader inflation, affecting both essential goods and discretionary spending.
For ordinary Indians, the impact is becoming increasingly visible as temperatures climb.
In heatwave-prone regions such as Delhi, Rajasthan and Maharashtra, bottled water is often a necessity when municipal supplies fall short.
Rising prices are therefore placing additional financial strain on lower and middle-income households.
Health experts warn that reduced access to affordable drinking water could increase risks of dehydration and heat-related illnesses.
The crisis also highlights the growing impact of climate change, as India’s summers become longer and more intense each year.
As extreme weather and global conflicts intersect, the pressure on everyday essentials is expected to deepen in the coming months.
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