Even though there is no shortage yet, industry players have shown mixed reactions to the situation.
But a combination of supply chain constraints, packaging bottlenecks, rising input costs, and a seasonal spike in demand signals a tightness in the market.
“Global disruptions tend to influence the brewing industry through fuel shortages, increase in the cost of raw materials and packaging materials. This is due to increased freight costs and delays in procurement owing to shipping delays,” said Narayan Manepally, cofounder and chief executive officer (CEO) of Geist Brewing Co, a Bengaluru-based craft brewery.
The ongoing tension in West Asia has disrupted key trade routes, pushing logistics costs and affecting the availability of aluminium cans, glass and other packaging materials.
Vinod Giri, director general, Brewers Association of India (BAI), highlighted that West Asia-related gas shortages have hit beer supply in Karnataka, especially microbreweries reliant on LPG.
He added, “Rising prices of glass bottles and lower empty can production due to gas shortages have stretched companies’ working capital, and procurement has generally slowed.”
Further, Giri said in Karnataka, delays in notifying the new excise policy are weighing on beer supply. The industry is awaiting clarity on revised excise rates and maximum retail price (MRP), as companies are reluctant to hold inventory at older price points.
He added that restoring supplies would require the government to bring certainty by announcing the new excise policy at the earliest.
Giri pointed to last year’s summer, noting that a wet season compounded existing challenges. He said beer sales had grown at 16 per cent compound annual growth rate (CAGR) between FY18 and FY24, but flattened between FY24 and FY25 due to tax increases. Sales declined by nearly 10 per cent in FY26 amid further tax hikes and unfavourable weather conditions.
He added that repeated tax increases led to higher consumer prices, weighing on demand.
To contextualise, five tax hikes in less than two years, between July 2023 and May 2025, have pushed the retail price of regular strong beer, the dominant category in Bengaluru, to ~200 from ~160 (650 ml bottles), significantly impacting sales.
Further, brokerage firm Nuvama Institutional Equities has also flagged concerns, noting that a shortage of aluminium cans could impact the premium end of the beer market, which relies heavily on such formats.
Meanwhile, an early onset of summer has triggered a surge in demand.
“Demand for beer increases quickly when temperatures rise earlier than expected, while brewing cycles remain fixed because fermentation and conditioning take time,” Manepally said. “This can create short-term pressure on supply in high-consumption markets such as Bengaluru.”
However, not all are seeing a full-fledged supply crunch yet. Prajwal Lokesh, managing director (MD) of Lokesh Hospitality, which operates Chin Lung brewery in the city, said the impact so far has been limited.
“There has been a minor indirect impact due to supply chain challenges, particularly around aluminium kegs and caps, a portion of which are sourced from regions affected by the West Asia crisis,” Lokesh said.
“With the early onset of summer driving higher demand, this has led to some operational adjustments, though not at a large scale,” he added.
Lokesh, on the contrary, also said that Bengaluru’s supply situation remains largely stable for now. “There is no major beer supply crunch in Karnataka or Bengaluru currently. Any impact has been minimal and largely linked to packaging material availability rather than production capacity. Overall, supply in Bengaluru remains stable, with only slight fluctuations in certain formats,” he said.
Nuvama noted, not just Bengaluru, unseasonal rain in North and East India in March 2026 also hurt summer-driven categories such as beer, impacting companies like Bengaluru-based United Breweries in the March quarter (Q4FY26).
Higher cost of glass bottles, aluminium cans and cartons, along with elevated freight expenses, is expected to weigh on margins for brewers through the quarter.
For Geist, Manepally said, it has been recalibrating its production and sourcing strategies to cope with volatility.
“The focus is on planning and flexibility. Production planning has become agile, with closer monitoring of demand patterns and inventory levels,” Manepally said.
Geist has also made adjustments to its energy mix to manage disruptions.
“Our restriction on piped natural gas (PNG) supply is now offset by diesel and liquefied natural gas (LPG). Our pizza ovens use wood, our tandoor ovens use coal, and we have turned off our pilot lamps to save wherever we can,” he said.
Despite these measures, production has not been entirely unaffected. “We are seeing stress across raw materials, packaging and energy, much like every other industry,” Manepally said, adding that the company is exploring alternative suppliers that bypass Middle Eastern shipping routes.
Meanwhile, Lokesh said his company is diversifying sourcing channels and building inventory buffers. “We are actively working on identifying alternative suppliers for aluminium kegs and caps to reduce dependency on specific regions.”
So far, impact on output has been marginal. “The overall impact on production and sales has been minimal. While there may be slight delays or adjustments in certain packaging formats, there has been no significant dip in overall volumes,” Lokesh noted.
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West Asia crisis has disrupted key trading routes, driving up logistics cost -
Five tax hikes in the last two years have pushed the retail price of strong beer, impacting sales -
Availability of raw materials, for example, aluminium cans, glass has taken a hit -
Delay in notifying the new excise policy has weighed on beer supply -
Firms are reluctant to hold inventory at older price points as the industry awaits clarity on revised excise rates and MRPs
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