As Consumption Habits Shift, Nescafe Shifts Its Attention To Gen Z – CoffeeTalk

Nescafe is targeting Gen Z as consumption habits shift. The company is now targeting its latest iteration for the next generation of coffee drinkers, with the goal of developing solutions specifically to bring young people into the Nescafe brand. Today, one-third (32%) of coffee consumed out-of-home is iced, according to company estimates. For many younger consumers, namely Gen Z, it’s often their first introduction to the ubiquitous drink.

Nescafe’s heartland is really in the morning, drunk hot, and they are trying to move into a space which is throughout the day — more in the afternoon, consumed cold, retargeting that younger generation. This provides a super exciting growth opportunity for Nescafe.

Coffee is a big bet for Nestle, with Nescafe and sister brand Nespresso accounting for two of the company’s six key priorities for 2025. It represents a return to the core for the world’s largest food and beverage company, whose main lines include coffee, pet care, and food under popular brands such as Nespresso, Purina, and KitKat.

Nestle’s stock has lagged major rivals such as Unilever and Danone over recent years amid weaker sales growth and revised guidance. CEO Laurent Freixe has vowed to refocus the business, citing coffee as one of the categories with the highest rate of “clear-cut” wins.

The firm’s latest gambit, Nescafe Espresso Concentrate, marks a new approach to product development — one it plans to extend to other categories. The cold liquid concentrate, which can be used as a base for chilled caffeine drinks, was developed in a research and development (R&D) accelerator and trialed in U.S. Kroger stores before its ultimate sign off.

Nescafe is now hoping that by targeting new consumers and consumption habits, it could pave the way for further expansion into adjacent categories. This includes penetrating traditional tea markets like India, China, and Japan, building out customization and premiumization, and targeting new consumption occasions.

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