Sustainable coffee/Nestle

Editorial staff

Nestle (Thai) Ltd, the marketer of Nescafe coffee, continues to create a sustainable future for Thailand’s coffee industry, focusing on strengthening the coffee business through inspirational brand and product innovation as well as advancing sustainable coffee farming practices.

According to NielsenIQ , Thailand's instant coffee market reached a total market value of 5.7 billion baht in the first quarter of this year, a 5% increase from the first quarter of last year due to high demand by Thai consumers . While Kantar Worldpanel reports the value of ready to drink coffee market reached 3.8 billion baht in the first quarter of 2024, up by 10% compared with the same period in the previous year, driven by a need for convenience and record high summer temperature.

Thailand’s total coffee market was worth of 30 billion baht last year and 47% of the total was cold coffee consumption. The company expects the total coffee market to grow by 5% this year. Per capital consumption of coffee in Thailand is about 340 cups per year.

Despite a solid growth of Thailand’s coffee market in the first quarter this year and continued rising coffee demand from consumers, the local coffee bean supply is dropping due mainly to climate change and competing crops, increasing the need for imports.

Thailand’s domestic coffee supply faces challenges due to climate change and competing crops, which has led to the need to import more coffee beans. Global coffee productions are also on a declining trend. It’s estimated that the global coffee supply could be reduced by approximately 50% by 2050, making Regenerative Agriculture efforts more critical than ever.

As the market leader, Nescafe will strengthen its business to better serve Thai consumers and drive industry growth while building climate resilience farming practices to deliver a long-term supply of high-quality local coffee beans.

(Right) Jojo Dela Cruz, Business Executive Officer – Coffee and Creamer Business Unit, Nestlé (Thai) Ltd.,

“As the coffee market leader, Nescafe will continue our active role in creating a sustainable future for Thailand’s coffee industry. We are committed to strengthening our Nescafe business to better serve Thai consumers and drive the industry while advancing sustainable coffee farming to ensure a dependable long-term coffee supply,” Jojo Dela Cruz, Business Executive Officer – Coffee and Creamer Business Unit, Nestlé (Thai) Ltd., said

In the second half of this year , Nescafe will focus on three strategies. It repositions Nescafe as an inspiring catalyst, providing the ultimate coffee experience through innovation and renovation, and putting sustainability at the core of the brand.

Nescafe has transformed from a simple daily beverage to one that inspires people to make a difference. The brand will continue to invest to drive excitement and consumer engagement with the “Make Your World” campaign across its product portfolio.

For ultimate coffee experience, it recently launched premium Nescafe gold Americano and Latté ready-to-drink coffee as well as Nescafe Honey Lemon, which received impressive feedback from consumers. Nescafe plans to launch more new products to address the need for great tasting and cold coffee both for in-home and out-of-home consumption. By continuing to invest and innovate new products, Nescafe will help driving the Thai coffee industry to continuous growth.

The company plans to spend 620 million baht to promote coffee consumption this year.
With the estimating of reducing coffee supply long term will impact to coffee quality and cost and 76% of consumers is interested in environment issue problem and 69% are ready to invest in products those put focus on sustainability,

Nescafe is advancing sustainable coffee farming through regenerative agriculture under the Nescafe Plan 2030, a global sustainability initiative.

By promoting regenerative agriculture, Nescafe aims to help coffee farmers handle climate change, improve yields and quality as well as protect and restore natural biodiversity and resources.