The war with Iran is causing cost increases in the bottled water industry in India.

The war between the United States and Iran has a significant impact on the bottled water market in India, estimated at around 5 billion dollars.

Producers are facing rising costs due to disruptions in supply chains, which has led to increased prices for essential materials, such as plastic bottles and cardboard boxes. Although large companies have not yet raised prices for consumers, approximately 2,000 smaller producers have already increased prices by 5%, and the Federation of Bottled Drinking Water Producers in India warns that prices could rise by another 10% soon.

The increase in oil prices has led to a 50% rise in the cost of polymers, essential for making bottles, and the cost of caps has doubled. In a country with 1.4 billion inhabitants, where access to safe drinking water is a major issue, millions of people depend on bottled water. Large companies like Bisleri, Kinley, and Aquafina compete in this market, and the premium segment of natural mineral water, which is growing, is also affected. Producers in this segment, such as Aava, have raised prices by 18%, and many are still absorbing some of the costs to avoid losing customers.

The industry is facing significant challenges ahead of the summer season, and producers warn that they can no longer sustain the rising costs of raw materials without increasing product prices.