The ongoing conflict involving Iran has significantly disrupted the supply of Diet Coke in India, compelling beverage giant Coca-Cola to revamp its sourcing strategy, increase retail prices, and confront unexpected challenges in one of its fastest-growing consumer markets. What initially appeared to be a temporary shortage has evolved into a broader supply chain issue, highlighting how geopolitical tensions can directly affect everyday consumer products.
The crisis stems from disruptions in the movement of aluminium cans, a critical packaging material for Diet Coke in India. Unlike many international markets where the beverage is sold in multiple packaging formats, Diet Coke in India is primarily available in aluminium cans. This dependence has made the product especially vulnerable to disruptions in global aluminium supplies triggered by the conflict in the Gulf region.
The Strait of Hormuz, one of the world’s busiest maritime trade routes, has witnessed severe disruptions due to the conflict, delaying shipments of aluminium cans and raw materials destined for India. The Gulf region accounts for a significant share of global aluminium production, making any interruption in trade through the route a major concern for manufacturers dependent on imported packaging materials.
To maintain supplies, Coca-Cola has reportedly shifted to importing larger 330-ml aluminium cans from Southeast Asia after facing shortages of its standard 300-ml cans. However, the alternative packaging has come at a higher cost. Consequently, the company has increased the retail price of Diet Coke in India by more than 10 per cent. The larger can, now priced at around ₹50, replaces the earlier 300-ml version that retailed for approximately ₹40, resulting in a noticeable increase for consumers.
The shortage has also had a measurable impact on Coca-Cola’s business performance in India. During the second quarter of 2026, the company acknowledged losing market share in the country as supply constraints prevented it from meeting demand, particularly across mid-priced beverage categories. Company executives cited rising aluminium costs, packaging shortages and limited product availability as major factors affecting sales.
Interestingly, the scarcity has also generated an unusual cultural trend. Limited availability of Diet Coke sparked a wave of “Diet Coke parties” across several Indian cities, where cafes, restaurants and event organisers capitalised on the product’s scarcity by hosting themed gatherings centred around the beverage. The phenomenon, driven largely through social media, underscored the growing popularity of Diet Coke among urban consumers despite the supply challenges.
Industry experts note that the disruption extends beyond beverage companies. Rising freight costs, delays in international shipping, and increased packaging expenses have affected manufacturers across sectors relying on imported aluminium. For Coca-Cola, however, the impact has been particularly pronounced because Diet Coke lacks the packaging flexibility enjoyed by many of its other products. While beverages such as Coke Zero, Thums Up and regular Coca-Cola are sold in plastic bottles, glass bottles and cans, Diet Coke’s reliance on aluminium cans has limited the company’s ability to quickly switch to alternative packaging.
Despite the temporary setback, Coca-Cola remains optimistic about the Indian market. Senior company officials have described the surge in consumer demand for Diet Coke as an encouraging sign, even though supply limitations prevented the company from fully capitalising on it. Executives believe India continues to be one of Coca-Cola’s most attractive long-term growth markets and expect demand for low-sugar beverages to expand further in the coming years.
The episode serves as a reminder of how international conflicts can ripple through global supply chains, affecting products that consumers often take for granted. In the case of Diet Coke, a disruption thousands of kilometres away has translated into shortages on retail shelves, higher prices, and a complete rethink of sourcing strategies for one of the world’s largest beverage companies. As geopolitical uncertainties persist, multinational firms are increasingly being forced to diversify supply networks and build greater resilience against future disruptions.
