Companies are hopeful of easing of packaging-related inflationary pressures amidst peace talks between US and Iran. Despite the uncertainity around West Asia crisis, crude oil prices have been seen some reduction after skyrocketing at the start of the conflict. However, players pointed out that stabilisation in prices will only be visible gradually across the packaging value chain.
Thimmiah Napanda, MD & CEO, Alternicq said, “The recent easing of tensions in the Middle East and the resulting decline in crude oil prices are expected to have a positive impact across the packaging value chain. As crude-linked resin prices soften, input costs for brands are likely to moderate. If crude oil prices remain below $80 per barrel in the coming quarters, it could stimulate consumption, support demand across FMCG and beverage categories, and drive higher packaging volumes.”
Glass bottle makers, who supply to the beverage and alcobev industry have also been battling with challenges of raw material costs volatility. Suraj Mehta, Chief Strategy Officer, Hindusthan National Glass & Industries Limited said, “Energy intensive industries such as glass manufacturing were directly impacted by the conflict in terms of operating costs, fuel availability and supply chain stability. What must also be understood is that supply chains, once disrupted, take far longer to resurrect than they take to break. It will be some time before we return to the levels we operated at before the conflict. The longer the war continued, and the longer the Strait of Hormuz remained closed, the longer the road back to a fully restored supply chain becomes.” Mehta added that the industry remains optimistic that a lasting resolution will support growth, investment and supply chain resilience.
For FMCG companies, rising costs of packaging and other crude-derivative related raw materials have been a key challenge since March. Infact, players in the paints, beverages and other non-food segments have had to take price hikes to mitigate the impact. Sources said that the vendors have inventory purchased at higher prices and hence it will take time before lower prices begin reflecting in the market.
Mayank Shah, Chief Marketing Officer, Parle Products said that FMCG industry is hoping for easing in packaging related inflationary costs with expectations of easing of West Asia conflict. “This quarter has been challenging due to the West Asia conflict and geopolitical tensions. Once the crude oil prices stabilise with easing of tensions, we are expecting to see packaging costs come down. Players are monitoring the situation before placing fresh orders for packaging materials,” he added.
Published on June 21, 2026
