Nestlé is focusing on premiumisation, new consumption occasions, and younger demographics to drive coffee growth in China, India, the Middle East, and Africa. In these regions, per capita coffee consumption remains low compared to the global average. By expanding into cold coffee formats, enhancing at-home brewing experiences, and introducing functional coffee innovations, the company aims to accelerate market adoption.
Insights & Strategic Moves
Cold Coffee as a Youth Market Entry
Nestlé sees cold coffee as a way to attract younger consumers, expanding ready-to-drink and freshly dispensed cold brews. The Nescafé Espresso Concentrate allows consumers to make barista-style iced coffees at home, offering a significantly higher value per cup compared to traditional instant coffee. Markets in China, India, and MENA are key targets for this expansion.
Expanding the ‘Coffee Shop At Home’ Experience
Nestlé is launching next-generation home coffee systems with home-compostable pods and a connected machine ecosystem. These innovations are already available in four markets and are expected to reach over ten by 2027.
Functional Coffee for New Consumer Needs
The company is moving beyond traditional hot coffee to address changing consumer preferences. Future innovations may include protein-infused cold brews, adaptogenic and nootropic coffees, and energy-boosting formulations.
Future Outlook
Nestlé’s shift toward cold, premium, and functional coffee aligns with evolving consumer habits in Asia and MENA. Growth will depend on scaling ready-to-drink and home café solutions while leveraging digital and e-commerce channels to engage younger audiences.
By redefining coffee experiences, Nestlé is positioning itself for long-term growth in regions with untapped potential, turning Asia and MENA into the next key markets for global coffee expansion.
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