Mumbai, March 13: India’s packaged drinking water industry, valued at nearly USD 5 billion, could soon witness price hikes as the escalating Iran–Israel conflict drives up global crude oil prices, significantly increasing plastic packaging costs. Leading bottled water brands such as Bisleri, Kinley, and Aquafina may revise prices as manufacturers struggle with surging input costs ahead of the peak summer demand season.

Rising Input Costs Pressure Manufacturers

The main reason behind the potential price increase is the sharp rise in polymer prices, a crude oil derivative used to produce PET bottles. Industry data shows polymer costs have surged nearly 50 percent to INR 170 per kilogram, putting substantial pressure on manufacturers. Crude Oil Prices Surpass USD 100 Barrel As Iran War Impedes Production and Shipping in Middle East.

Other packaging components are also becoming more expensive. Bottle cap prices have more than doubled to INR 0.45 per piece, while costs of corrugated boxes, labels, and adhesive tapes have also climbed significantly.

For an industry that runs on high volumes and thin profit margins, absorbing these rising costs is becoming increasingly difficult.

Small Manufacturers Already Increasing Prices

While major brands have not yet officially raised consumer prices, smaller manufacturers have already begun increasing rates for distributors and retailers. Middle East Conflict: Brent Crude Oil Briefly Tops USD 100 Barrel As Iran Attacks on Shipping Worsen Supply Concerns.

According to the Federation of All India Packaged Drinking Water Manufacturers’ Association, nearly 2,000 small-scale manufacturers have raised reseller prices by around INR 1 per bottle, representing an increase of about 5 percent.

The association’s Secretary General Apurva Doshi warned that continued volatility in raw material costs is creating “chaos” in the supply chain, and the additional burden may soon be passed on to consumers.

Premium Mineral Water Also Affected

The impact is not limited to standard packaged drinking water. Premium mineral water brands are also feeling the pressure.

Mineral water company Aava has already raised reseller prices by 18 percent. CEO Shiroy Mehta said manufacturers are currently absorbing nearly half of the increased costs to maintain customer relationships, but the situation may become unsustainable if input prices continue rising.

Critical Timing Ahead of Summer

The potential price hike comes at a crucial time, as summer demand for bottled water in India typically surges.

With studies suggesting that nearly 70 percent of India’s groundwater is contaminated, packaged drinking water remains a daily necessity for millions of people, especially in urban and semi urban regions.

Market leaders such as Bisleri, Kinley, and Aquafina are closely monitoring the situation. However, if crude oil prices remain elevated due to ongoing geopolitical tensions in the Middle East, bottled water prices in India may soon rise for consumers.

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(The above story first appeared on LatestLY on Mar 13, 2026 03:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).