India Beverage Can Market Outlook to 2029

India Beverage Can Market Overview

The India Beverage Can Market is valued at 4703 million units, based on a five-year historical analysis. This growth is propelled by sustainability mandates under Indias EPR policy and the rising adoption of aluminium cans as recyclable, lightweight, and premium-looking packaging alternatives for on-the-go consumption. The segment is also fueled by a notable shift in consumer preferences from PET to metallic formats in urban retail.

The dominant manufacturing clusters in the market include Aurangabad, Nuh, SriCity, and Mumbai, due to their proximity to beverage filling units and port-based logistics. These regions house high-capacity plants run by major manufacturers such as Canpack and Ball Beverage Packaging. The availability of mega-line decorators and operational reliability in these hubs enables economies of scale. Further, locations like MIDC (Maharashtra Industrial Development Corporation) have emerged as central nodes due to government-backed incentives on aluminium packaging and ease of raw material access.

The Central Pollution Control Board (CPCB), under Indias EPR mandate, requires producers to achieve 100% traceability and recycling of aluminium cans sold in the Indian market. In 2024, the Ministry of Environment and Forests (MoEFCC) released guidelines mandating barcode-linked tracking of all aluminium-based beverage packaging under the Plastic Waste Management (PWM) Rules Amendment. This has compelled beverage companies and can manufacturers to tie up with certified PROs (Producer Responsibility Organizations) to meet EPR credits.

India Beverage Can Market Segmentation

By Material Type: The India Beverage Can Market is segmented by material into aluminium and tin. Aluminum currently holds the dominant market share due to its excellent recyclability, lower weight, and wider acceptance across soft drink, alcoholic, and RTD beverage categories. With increasing pressure on sustainability and India aluminum sheet manufacturing capability, this segment continues to be the preferred substrate for most large-scale can makers.

By Beverage Type: Indias beverage can market is segmented into carbonated, alcoholic, dairy-based, juice, and other functional beverages. Carbonated drinks lead the share due to their mass appeal, wide distribution, and promotional tie-ups. The dominance of global brands such as Coca-Cola and PepsiCo, who use aluminium cans for launches and value packs, strengthens this category. Additionally, festival seasons and sporting events accelerate carbonated drink consumption in can formats.

India Beverage Can Market Competitive Landscape

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India Beverage Can Market Analysis

Growth Drivers

Urbanization-Driven Beverage Demand: Indias urban population reached 503 million in 2024, adding over 60 million new urban consumers since 2020, according to the World Bank. This urban sprawl has boosted consumption of ready-to-drink beverages, increasing the need for lightweight, mobile-friendly packaging such as aluminium cans. With over 34 million people migrating to Tier 1 and 2 cities, FMCG distribution has shifted toward compact, recyclable packaging formats, driving can manufacturing utilization across Nuh, Aurangabad, and SriCity facilities.

Increased Industrial Aluminium Output: As of 2024, Indias aluminium production capacity crossed 4.1 million tonnes, according to the Ministry of Mines. This rise has made raw material procurement for aluminium can production more reliable and localized. Hindalco and Vedanta have reported over 85% of their aluminium production serving the domestic market. This shift has minimized dependency on imports and strengthened backward integration for leading can manufacturers, further reinforcing aluminium as the dominant packaging choice for beverages.

Youth-Centric Functional Beverage Boom: Indias working-age population stood at 952 million in 2024, per the International Labour Organization. Of this, over 70% fall between the age group of 1840, a key demographic for RTD beverages and energy drinks. With energy drink sales showing sharp volume increases during IPL, campus festivals, and e-sports tournaments, beverage companies are increasingly adopting 150330 ml aluminium cans for product launches, thus driving up demand for small-format metal packaging.

Market Challenges

Volatile Aluminium Input Prices: According to the IMFs 2024 commodity price forecast, aluminium prices have remained above USD 2,250 per metric ton, primarily driven by global supply disruptions and increased demand from EV and infrastructure sectors. This volatility affects the production planning of can manufacturers, who operate on fixed supply contracts with beverage clients. Frequent price revisions disrupt long-term procurement and reduce the pricing flexibility of small and mid-size manufacturers.

Recycling Collection Inefficiencies: As per the Ministry of Environment, India generated over 3.4 million tonnes of aluminium packaging waste in 2023, but only 35% was recovered and routed to recycling channels. This low collection rate stems from the absence of organized post-consumer collection systems in semi-urban and rural areas. While aluminium is fully recyclable, the lack of reverse logistics infrastructure significantly lowers circularity and compliance with Extended Producer Responsibility (EPR) targets.

India Beverage Can Market Future Outlook

Over the next five years, the India Beverage Can Market is expected to witness continued demand for aluminium packaging, driven by urban lifestyle changes, growing beverage exports, and rising consumer interest in on-the-go functional drinks. Government policies on circular packaging, coupled with industry adoption of decorative printing and resealable can tech, are likely to further accelerate production capacities and innovation in can formats.

Market Opportunities

Premium Bottled Water and Nutraceutical Launches: Indias packaged water sector shipped over 6.2 billion litres in 2023, according to the Ministry of Jal Shakti. Recently, premium water brands and electrolyte-based drinks have been shifting toward aluminium cans due to their appeal to fitness-conscious consumers. Players like Rail Neer and new-age brands targeting gyms and wellness centres are now adopting mini-cans (150250 ml), offering a clear opportunity for high-margin can manufacturing tailored to the wellness segment.

Localized Aluminium Sheet Supply Chain: India imported 680,000 metric tons of aluminium sheets in 2022, according to the Directorate General of Foreign Trade (DGFT). However, investments into domestic rolling mills in Gujarat and Odisha are enabling in-house can sheet production. Companies now have access to localized raw material, reducing costs and lead time. This backward integration unlocks future expansion in decorative cans, embossing, and customized packaging solutions across beverage brands seeking premium differentiation.