Nestlé’s Bold Strategy to Unlock Coffee Growth in Asia, Africa, and the Middle East
- PYD
- Feb 28
- 2 min read
With global coffee consumption at 230 cups per person per year, markets in China, India, Africa, and the Middle East present untapped potential, consuming just 40 cups per person annually. Nestlé, the $48.3 billion coffee powerhouse, aims to drive growth by premiumisation, expanding consumption occasions, and targeting younger consumers. Innovations in cold coffee and home brewing technology will play a central role in its strategy to penetrate these high-growth regions.
Insights & Strategic Moves
Premiumisation to Drive GrowthNestlé’s coffee strategy will shift from a hot coffee focus to diversified formats, including cold coffee innovations and functional beverages tailored to new consumer needs. Higher-margin premium products, such as the Nescafé Espresso Concentrate, priced at 10x the cost per cup of Nescafé Classic, will target value-conscious yet experience-driven consumers.
Expanding Consumption OccasionsNestlé plans to embed coffee into daily routines beyond breakfast, pushing cold coffee as an afternoon indulgence and functional coffee innovations for health-conscious consumers. Ready-to-drink (RTD), ready-to-prepare, and home-brewed options will help Nestlé broaden its market reach in Asia, MENA, and Africa.
Targeting Younger Consumers Through Cold CoffeeCold coffee is a growing lifestyle trend among younger demographics, making it a key category for Nestlé’s expansion. The company is rolling out freshly dispensed, RTD, and home-brewed cold coffee options to engage youth segments in emerging markets.
‘Coffee Shop at Home’ InnovationNestlé is upgrading its home coffee machine ecosystem, launching eco-designed, connected machines with home compostable coffee pods. This innovation is already live in four markets and will expand to over 10 by 2027, strengthening Nestlé’s position in the premium home-brewing segment.
Future Outlook
By leveraging premiumisation, cold coffee, and next-gen brewing technology, Nestlé is positioned to capture high-growth opportunities in underpenetrated markets. Its youth-focused strategy and expansion of coffee occasions will drive sustained volume and value growth across its Nescafé, Nespresso, and Starbucks brands.
Nestlé’s aggressive coffee expansion in China, India, Africa, and the Middle East signals a paradigm shift in global coffee consumption—one driven by innovation, premiumisation, and digital engagement.
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