Coca-Cola Loses Ground in India Amid Rising Costs

Coca-Cola lost market share in India during the second quarter as rising aluminium costs and packaging shortages affected its ability to compete in key mid-priced beverage segments. The company has also faced supply challenges for Diet Coke cans, prompting it to source larger cans from Southeast Asia while increasing prices across the Indian market.

Despite reporting strong global quarterly earnings and raising its annual outlook, Coca-Cola identified India as a weak spot in its Asia-Pacific business. Chief Financial Officer John Murphy said the company currently lacks the right packaging options in the ₹11–₹40 price range, which has contributed to the loss of market share. He added that Coca-Cola is working to improve its product mix and expects to regain lost ground over time.

Murphy remained optimistic about India’s long-term growth potential, noting that demand for Diet Coke has surged significantly despite supply constraints. He described the sharp increase in demand as a positive challenge, saying the brand is expected to record nearly a tenfold rise in demand this year, albeit from a relatively small base.

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