Nestle Doubles Down On Chinese Coffee Market – CoffeeTalk

Nestle is doubling down on its coffee strategy in China to capture the growing appetite for diverse and high-quality coffee experiences among Chinese consumers. The company’s Asia, Oceania, and Africa (AOA) region holds high expectations for its performance in China, expressing confidence that the market will continue to deliver sustained growth. Nestle Coffee will pursue “bigger, fewer and better and more focused innovation projects”, targeting cutting-edge trends in Chinese consumer behavior and coffee consumption to drive the next wave of expansion.

According to Nestle’s 2025 first quarter results report, the company’s global coffee business achieved growth of 5.1% year-on-year. Data from the China Coffee Industry Report 2024 shows that although China’s coffee exports hit a record low of 20,000 metric tons in 2023, imports grew by over 20%, reflecting surging domestic demand. Coffee consumption in China has jumped 167 percent over the past decade, reaching 350,000 tons. Research institute Mintel Group forecasts that the retail value of instant coffee will reach 12.47 billion yuan ($1.7 billion) in 2023, up 5% year-on-year, and expects it to grow at a compound annual growth rate of 6.3% to reach 16.9 billion yuan by 2028.

Despite intensifying competition, instant coffee remains relevant due to its convenience, though it now faces pressure from both on-premise and retail coffee. Nestle continues to lead the instant coffee segment in China, thanks to its wide product portfolio and strong brand equity.

On April 17, Nestle Coffee unveiled a major upgrade to its classic 1+2 formula, introducing a coffee concentrate with a coconut flavor, aligning with findings from the 2024 monitoring report by iResearch. The food and drink company is also expanding its ready-to-drink coffee offerings with new flavors such as the osmanthus longjing latte and coconut latte, designed to appeal to consumers in outdoor and mobile settings.

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