Diet Coke shortage in India has a surprising Iran war link: here’s how

Diet Coke is becoming increasingly hard to find across parts of India, as supply disruptions triggered by the Iran war strain the availability of aluminium cans, colliding with a sharp rise in demand for sugar-free beverages in the country.

The shortage stems from delays in aluminium shipments from the Gulf, which accounts for around 9% of global production.

Since the end of February, supplies have been constrained by Iran’s de facto blockade of the Strait of Hormuz, a key shipping route, tightening the availability of cans used by beverage companies.

Supply disruptions ripple through market

Unlike most soft drinks in India that are sold in both plastic bottles and cans, Diet Coke is available only in cans, making it particularly vulnerable to packaging shortages.

Distributors say Coca-Cola has begun rationing supplies and is unable to fulfil all orders.

"We've been placing orders but have been told there is a shortage due to war," said Sanjay, one of the distributors in a Reuters report.

Coca-Cola declined to comment, but retailers are already seeing the impact.

One grocery retailer in the national capital region of Delhi told the Economic Times newspaper:

The disruption extends beyond a single product.

Industry executives say beer makers and other beverage companies are also facing constraints, as aluminium can shortages ripple across the wider drinks market.

Demand boom intensifies supply strain

The timing of the shortage is significant, coming amid a surge in demand for low and zero-sugar beverages.

Zero and low-sugar beverages have climbed to a five-year peak in 2025, reinforcing their shift from a niche urban preference to a mainstream consumption trend, the Economic Times reported in February.

Coca-Cola’s no-sugar lineup — including Diet Coke, Coke Zero, Thums Up X Force (no sugar), Sprite Zero, Kinley water, along with select juice and energy offerings — made up a record 30% of its total volumes in 2025, according to figures cited by the Economic Times.

Diet Coke, which leads the category, recorded a doubling in volumes from a year earlier.

Coca-Cola continues to hold a dominant position in India’s soft drinks market, valued at over $6.5 billion.

Industry-wide, the shift has been even more dramatic.

Executives told the publication that such beverages now contribute around 30% of overall sales in 2025, up from roughly 5% in 2020.

Market research suggests the segment could reach $4.7 billion by 2030, more than doubling from 2023 levels.

Rivals are seeing similar trends.

PepsiCo’s bottling partner reported that no-sugar and mid-sugar drinks made up 59% of total volumes in the October–December 2025 quarter, up from 53% a year earlier, marking one of the strongest annual gains in the category.

Capacity constraints and rising costs

Despite rising demand, supply-side constraints are proving difficult to ease.

Industry executives told the Economic Times that leading can manufacturers such as Ball Beverage Packaging and Canpack do not currently have enough capacity to meet demand, with new production lines expected to take 10 to 12 months to become operational.

An industry executive said the Diet Coke shortage was due to some consignments of imported cans being delayed.

Production of cans and bottles in India has also become more expensive because of an energy shortage, further tightening supply.

The combination of global logistics disruptions, higher input costs and compliance-related adjustments has left beverage makers struggling to maintain steady supplies.

Social media reaction and wider implications

The shortage has sparked a wave of reactions online, with social media users drawing comparisons to past supply crunches, including shortages of essential commodities such as LPG.