India’s alcobev industry is accelerating its move toward PET and aseptic packaging as glass prices remain volatile and supply disruptions continue to unsettle production schedules. While glass remains the dominant choice for premium brands, companies say alternative packaging formats are becoming increasingly important for mass-market segments.
According to BAI Director General, Vinod Giri, Glass is always open to price fluctuations and keeps companies’ margins in the cloud. PET and aseptic packaging (tetra) are more predictable but have image limitations, and work for low-end spirit brands only, which is against the general theme of premiumisation.
“Companies want to shift to alternative options for low-end brands as the costs are lower, which helps wafer-thin margins in the bottom segments. In states like Karnataka, Tetra has a close to 80% share due to a massive low-end segment. But mainstream upwards brands today need glass packaging. Some states show reluctance for PET due to environmental reasons, but tetra is perceived favourably because it is difficult to counterfeit, hence having lower chances of revenue leakages. But many states don’t have provisions for these packs in their excise policy yet,” he explained.
Industry experts noted that mass-market liquor in states such as Uttar Pradesh and Karnataka is commonly sold in aseptic formats like Tetra Pak, while Kerala, Andhra Pradesh, Maharashtra, and Telangana largely use PET; in some states, country liquor is also sold in pouches.
Pradeep Jain, executive director and chief financial officer at United Spirits Limited, said during the company’s Q1 earnings call that planned furnace shutdowns led to some cross-regional sourcing and a slight increase in freight costs, but nothing structural. He noted that inflationary pressures were offset through alternative sourcing, shifts in packaging, and long-term vendor contracts, which collectively supported COGS and gross margins.
“We do expect some supply-related disruptions in the upcoming quarter on glass, owing to planned furnace shutdowns from key suppliers, both in the East and the West of the country,” he had highlighted, adding that the company is increasingly migrating to PET.
During the company’s Q2 earnings call, Amar Sinha, Chief Operating Officer at Radico Khaitan, noted that India’s glass capacity currently exceeds demand, though some major players are still operating below full utilisation. Glass bottle prices remain stable, and with additional capacity coming into play, the industry could see a more favourable balance between price and demand.
However, certain players shared that short-term price movements did not drive their packaging shift. Utsav Kedia, Vice President – Business Growth, Great Galleon Ventures Limited, noted that the company has been evaluating alternatives like recycled polyethylene terephthalate (rPET) to improve supply stability, reduce breakage, and make its packaging more future-ready.
“Packaging costs have been rising across the board. Alternative materials help by reducing breakage, improving logistics, and giving more flexibility in sourcing. These do not directly change margins immediately, but strengthen long-term cost stability,” he added.
However, rPET isn’t a glass replacement, he said. While glass is infinitely recyclable in theory, in India, the collection and reprocessing systems aren’t always efficient. Recycled plastic has a lighter footprint in transport and can be part of a closed-loop system when sourced responsibly.
“While switching from glass works for product lines, we look at three filters: product suitability, consumer acceptance, and operational feasibility. If the format delivers consistently across these areas, we adopt it. Glass remains in use for bigger SKUs, especially the 750ml SKU and 1L export packaging, where it is still preferred. Alternatives are being scaled where they make practical sense and are accepted,” he mentioned.
Currently, rPET is more expensive than virgin PET. However, with wider adoption and a larger rPET manufacturing ecosystem, the cost gap may reduce.
Kedia added that consumers are more open to alternative packaging than the industry gives them credit for. If the product is trusted and the packaging feels intentional, consumers are willing to adopt. What they care about is convenience, authenticity, and whether the brand can explain why the material is better.
Published on November 17, 2025