Iran Crisis Forces Price Hikes in India’s Bottled Water Market

India's $5 billion bottled water market faces price hikes as the Iran war drives up plastic and packaging costs, reversing PM Modi's recent tax cut benefits.

By: AXL Media

Published: Mar 19, 2026, 12:32 PM EDT

Source: Reuters

Packaging Costs Skyrocket Amid Oil Surge

The primary driver of the price hike is the rising cost of crude oil, which has led to a dramatic spike in the price of petrochemical derivatives used in packaging.

Plastic Bottles: The cost of polymers used for bottles has risen by 50% to 170 rupees per kilogram.

Caps & Closures: Prices for bottle caps have more than doubled to 0.45 rupees apiece.

Overall Packaging: Bisleri CEO Angelo George reported that total packaging material costs surged by over 70% in the last fortnight alone.

Ancillary Materials: Corrugated boxes, labels, and adhesives have also seen significant price increases.