Changes in oil and petrochemical prices are not limited to fuel alone.
Image: Wikimedia Commons
The impact of changes in oil and petrochemical prices extends beyond fuel. The bottled water industry, which relies heavily on plastic packaging, is also affected, and this impact can ultimately reach consumers.
Water is one of the most basic necessities of life, but today its price is no longer determined solely by rainfall, rivers, or local water sources. Rising tensions in West Asia, particularly conflicts involving Iran, have influenced global oil and petrochemical markets. This effect is now beginning to reach the bottled water industry as well.
Growing dependence on bottled water and the impact of conflict
In India, the bottled water market has expanded rapidly over the past two decades. This growth is driven not only by consumer convenience but also by unequal access to safe drinking water, rapid urbanisation, and increased concerns about water quality.
Bottled water in everyday life
During the peak summer months of May and June, small queues of passengers can often be seen at platform stalls in many railway stations, waiting to buy bottled water. As soon as the train stops, passengers quickly purchase bottles, as ensuring safe drinking water during long journeys is essential.
According to the catering unit of Indian Railways, there is a daily demand for millions of litres of bottled water on railway premises. In many places, even the official brand “Rail Neer” falls short of meeting total demand, and the remaining demand is fulfilled by other brands.
During travel, this consumption becomes so high that shortages of bottled water have been observed at several busy stations during peak summer and crowding periods. This situation indicates that packaged water has now become an essential consumption item in travel and public spaces.
In many cities and towns across India, bottled water has become a routine part of daily life. At railway stations, bus terminals, tourist destinations, and roadside shops, a ₹20 bottle of water is among the fastest-selling products.
At weddings, large public events, and in offices, packaged water bottles are commonly served. In many small towns and semi-urban areas, small-scale local packaged water units are also operating, supplying bottles to nearby markets, hotels, and events.
Thus, bottled water is no longer just a product purchased during travel; in many places, it is increasingly becoming an alternative source of everyday drinking water.
According to various industry reports, India’s bottled water market is growing rapidly. Some estimates suggest that its size was around $3.7 billion in 2025 and could exceed $9 billion by 2032. Other industry estimates place the market size at over $10 billion.
Water quality challenges further drive this dependence. Approximately 85% of drinking water in rural India and about 48% in urban areas comes from groundwater, and in many states, issues such as fluoride, arsenic, and other chemical contamination have been reported. As a result, in many places, people consider bottled water to be a relatively safer alternative to local water sources.
Consumption of packaged water has also increased significantly in travel and tourism. For instance, according to official Indian Railways reports, IRCTC’s “Rail Neer” brand produced approximately 394.9 million bottles in 2023–24, highlighting how packaged water has become a large-scale component of consumption during rail travel.
In addition, thousands of licensed and unorganised units across the country are engaged in bottled water production, contributing to the continuous expansion of this market.
Impact of war and rising plastic costs
The entire bottled water system is fundamentally dependent on plastic packaging. Water bottles are typically made from petroleum-based polymers such as PET (polyethylene terephthalate), while caps are also produced using oil-derived plastic resins. When global oil and petrochemical supplies become unstable—such as during wars or geopolitical tensions—the prices of these raw materials begin to rise.
According to media reports, following conflicts in West Asia, there has been a significant increase in the cost of raw materials used for plastic bottles and their caps. This has led to rising production costs for packaged water manufacturers in India:
In some cases, polymer prices have increased by up to 50%.
The cost of bottle caps has more than doubled.
Around 2,000 small packaged water manufacturers in India have increased prices by approximately ₹1 per bottle due to rising input costs.
Summer heat and demand pressure
In India, as temperatures rise, water demand also increases sharply. Between March and June, temperatures escalate rapidly, and during this period, demand for bottled water reaches its peak.
During the summer, bottled water becomes one of the best-selling products in cities, bus terminals, railway stations, tourist spots, and roadside shops.
Industry reports indicate that India is among the fastest-growing bottled water markets globally, with rising temperatures, urbanisation, and health concerns driving demand.
Media reports also highlight sharp increases in raw material prices in certain regions. For example, representatives from the plastic industry have noted that PET polymer prices rose by nearly 40% within just a few days, putting additional pressure on the production and supply of water bottles.
With demand surging in the summer and plastic packaging costs simultaneously increasing, the packaged water industry is facing a dual pressure. This impact is felt first by small distributors and retailers and eventually reaches consumers in the form of higher prices.
Plastic and environmental concerns
The bottled water system is not just a drinking water option; it is also a system entirely dependent on plastic packaging. Most water bottles are made from petroleum-based plastics such as PET (polythene terephthalate). The production of this plastic requires significant energy and natural resources, and its increasing consumption adds to environmental pressure.
Globally, the consumption of plastic bottles has grown rapidly. According to a United Nations analysis, about one million plastic bottles are purchased every minute worldwide, a large proportion of which are used for bottled water and other beverages.
The issue is not limited to consumption alone but is also linked to waste management. Only about 9% of the plastic waste generated globally is recycled, while a large share ends up in landfills, water bodies, or the open environment.
Research indicates that around 1,000 rivers worldwide carry a significant portion of plastic pollution into the oceans, including many rivers in Asia.
A new dimension of plastic pollution has emerged in the form of microplastics. An international study found that nearly 93% of bottled water samples collected globally contained microplastic particles.
In India, plastic waste is also becoming a major environmental challenge. According to the Central Pollution Control Board (CPCB), approximately 4.1 million tonnes of plastic waste were generated in the country in 2021–22, a significant portion of which consists of single-use plastics. The growing consumption of bottled water is likely to accelerate this trend.
What are the solutions?
Strengthening safe tap water systems: Experts suggest that if reliable piped drinking water is available in both urban and rural areas, dependence on bottled water can be reduced. Initiatives such as the Jal Jeevan Mission aim to provide safe tap water to households, thereby reducing the need for packaged water.
Conservation and restoration of local water sources: If local sources such as ponds, lakes, rivers, and groundwater are protected and kept clean, communities will not need to rely on transported or bottled water.
Improving groundwater management: A large share of drinking water in India comes from groundwater, making its sustainable management essential. Scientific studies indicate that community-level groundwater management and recharge can significantly reduce water stress.
Managed Aquifer Recharge (MAR) improves water availability in India: Research associated with the Council of Scientific and Industrial Research (CSIR) has found that community-based MAR programmes have improved groundwater levels in several regions, positively impacting agriculture and livelihoods.
Community-led recharge movements enhancing groundwater levels: A study published in the Journal of Hydrology: Regional Studies found that community-based groundwater recharge efforts in the Saurashtra region of Gujarat led to significant improvements in groundwater resources.
Rainwater harvesting and recharge structures: According to research linked to the Indian Agricultural Research Institute (IARI), rainwater harvesting structures play a critical role in enhancing groundwater recharge, reducing flood risks, and improving water availability.
This situation highlights how even a basic necessity like water is increasingly linked to global supply chains and geopolitical developments. When systems like bottled water depend heavily on plastic and petrochemical industries, distant crises such as wars can influence everyday water prices.
In this context, long-term solutions lie not in expanding bottled water consumption but in strengthening reliable public water systems, conserving local water sources, and ensuring sustainable groundwater management.