Nestle SA views India and China as crucial coffee markets, expressing optimism about the potential for significant growth in coffee consumption in these highly populous nations, as stated by the global head of strategy.
“We have a really strong footprint in Asia and we are really bullish about those markets that have very low per capita consumption,” Philipp Navratil, head of Nestle’s coffee strategic business unit, said in an interview in Vietnam’s Dak Lak province. “China is really a big focus, and India is a big focus.”
In Asia, Nestle is involved in instant coffee activities, particularly in Vietnam, the largest producer of robusta beans globally. Earlier this year, futures for this variety in London reached a record high due to concerns about supply constraints. The impending El Niño is anticipated to result in drier conditions in the coffee-growing regions.
According to Navratil, the Philippines and Thailand hold strategic importance as key markets for the Swiss company specializing in Nespresso and Nescafe, encompassing both soluble and ready-to-drink products. Additionally, he highlighted Pakistan and Africa as other regions poised for significant growth in consumption.
“In India, China, sub-Saharan Africa, there’s 4 billion people that drink less than 20 cups per year” on average, Navratil said. There’s an opportunity “to really build coffee markets out of those huge populations,” he said.
