India Beverage Can Market Outlook to 2029

India Beverage Can Market Overview

• The India Beverage Can Market is valued at 4500 million units, based on a five-year historical analysis. This growth is propelled by sustainability mandates under India's 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 India's 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 Organisations) 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. Aluminium 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's aluminium sheet manufacturing capability, this segment continues to be the preferred substrate for most large-scale can makers.

By Beverage Type: India's 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, which 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

The India Beverage Can Market is characterised by a consolidated leadership structure with players like Canpack India Pvt. Ltd. and Ball Beverage Packaging India Pvt. Ltd., followed by established domestic manufacturers such as Tata Tinplate and Hindustan Tin Works. Visionary players are driving innovation in lightweighting and sustainability, while niche firms like Oricon Enterprises Ltd. focus on diversified packaging solutions and long-term FMCG partnerships.

India Beverage Can Market Analysis

Growth Drivers

Urbanisation-Driven Beverage Demand: India's urban population reached over 500 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 the can manufacturing utilisation across Nuh, Aurangabad, and SriCity facilities.

Increased Industrial Aluminium Output: As of 2024, India's aluminium production capacity crossed around 4 million tonnes, according to the Ministry of Mines. This rise has made raw material procurement for aluminium can production more reliable and localised. Hindalco and Vedanta have reported over 85% of their aluminium production serving the domestic market. This shift has minimised dependency on imports and strengthened backwards integration for leading can manufacturers, further reinforcing aluminium as the dominant packaging choice for beverages.

Youth-Centric Functional Beverage Boom: India's working-age population stood at around 950 million in 2024, per the International Labour Organisation. 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 approximately 150000 ml aluminium cans for product launches, thus driving up demand for small-format metal packaging.

Market Challenges

Volatile Aluminium Input Prices: Volatility in aluminium prices, driven by global supply disruptions and increased demand from sectors such as electric vehicles and infrastructure, continues to affect the production planning of can manufacturers. Frequent price changes disrupt long-term procurement strategies and reduce the pricing flexibility of small and mid-size manufacturers, especially those operating on fixed supply contracts with beverage clients. This instability poses challenges for maintaining profitability and operational efficiency in the industry.

Recycling Collection Inefficiencies: India faces significant challenges in recovering aluminium packaging waste due to the absence of organised 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. This inefficiency limits the effectiveness of recycling initiatives and impacts the overall sustainability of the aluminium packaging sector.

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: India’s packaged water sector is witnessing a notable shift, with premium water brands and electrolyte-based drinks increasingly adopting aluminium cans to cater to fitness-conscious consumers. Brands targeting gyms and wellness centres are embracing mini-can formats (150–250 ml), creating a clear opportunity for high-margin can manufacturing tailored to the wellness and functional beverage segment in India.

Localised Aluminium Sheet Supply Chain: India imported over 650,000 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 localised raw material, reducing costs and lead time. This backwards integration unlocks future expansion in decorative cans, embossing, and customised packaging solutions across beverage brands seeking premium differentiation.