The price of bottled water is set to spike in U.S. Here's why

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The price of bottled water is expected to rise in the U.S. because higher oil prices are pushing up the cost of plastic packaging, which is a major input for bottled drinks. Analysts also say companies are likely to pass those higher costs on to shoppers, so the increase could show up pretty quickly at stores.

Why it’s happening

The main driver is the spike in oil tied to the Iran conflict, which has disrupted shipping through the Strait of Hormuz and lifted energy costs worldwide. Since plastics are made from oil derivatives, higher crude prices feed directly into bottle manufacturing costs.

How much prices could rise

One analyst quoted in the reporting expects at least a 5 percent increase in plastic bottled drinks in the near term, with bigger jumps possible if oil stays elevated. In more extreme scenarios, bottled water could become noticeably more expensive if crude keeps climbing.

What shoppers may notice

Companies may raise prices even before supply chains fully adjust, especially if they worry costs will keep rising. That means bottled water could get pricier not only because of immediate production costs, but also because retailers and brands are bracing for future increases.