Nestle SA, the global food giant, is placing significant emphasis on India and China as pivotal coffee markets, citing immense potential for consumption growth in these populous nations, as stated by Philipp Navratil, the head of Nestle’s coffee strategic business unit.
In an interview conducted in Vietnam’s Dak Lak province, Navratil highlighted Nestle’s strong presence in Asia and its optimism towards markets with considerably low per capita coffee consumption.
Nestle’s operations in Asia encompass instant coffee activities in Vietnam, the largest producer of robusta beans globally. Concerns about tightening supply led to a surge in futures for this variety in London earlier this year. Additionally, the anticipated onset of El Niño is predicted to bring drier conditions to the growing areas.
Emphasising Nestle’s key markets in Asia, Navratil pinpointed the Philippines and Thailand as significant regions for the Swiss company’s products, including Nespresso and Nescafe, both in soluble and ready-to-drink formats. He also identified Pakistan and Africa as other regions poised for consumption growth.
Navratil mentioned that in countries such as India, China, and sub-Saharan Africa, approximately 4 billion people consume less than 20 cups of coffee per year on average. He pointed out that there exists an opportunity to develop coffee markets within those vast populations.
The strategic focus on these regions, especially in nations with substantial populations yet relatively low coffee consumption rates, signifies Nestle’s intent to capitalise on untapped markets and foster significant growth within the coffee industry.
