Nestlé launches six new coffee lines in China

China – Nestlé, a global leader in the consumer-packaged goods industry, has introduced six new coffee lines in China, including innovative plant-based beverages and a unique upcycled coffee product.  

This strategic expansion aims to address the growing demand for sustainable, plant-based bottled drinks in the Chinese market. 

As part of this new range, Nestlé has launched two vegan ready-to-drink offerings: Coconut Americano and Oatmeal Latte.  

Additionally, the company has introduced an upcycled coffee product, Guoran Light Coffee, marking the first of its kind in China. These new products are all integrated under the Nescafé brand, highlighting Nestlé’s effort to consolidate its position in China’s rapidly evolving coffee sector. 

“Consumers’ coffee consumption is increasing, from initially one cup a day to possibly two to three cups a day. For us, this is an opportunity,” said Alfonso Troisi, Senior Vice President for Coffee at Nestlé Greater China.

“As consumers enjoy coffee in more scenarios, we also need to expand more applicable products.” 

China’s coffee consumption has increased, with people now drinking two to three cups daily. The market reached cn¥617.8 billion (US$85.5 billion) in 2023 and is projected to surpass US$138 billion by next year.  

This growth has intensified competition among major coffee brands such as Luckin, Costa, Starbucks, and Nestlé. While Nestlé has traditionally dominated the instant coffee segment, its recent move into bottled drinks underscores its commitment to adapt to changing consumer preferences. 

“China has a highly dynamic coffee market and growth, and tends to form its own unique and constantly evolving coffee consumption trends,” Troisi explained.

“Based on insights into the local coffee market, we have rearranged our product lines based on consumption scenarios and target groups to ensure better and more targeted product innovation based on consumer needs.” 

In line with this strategy, Nestlé appointed its first local R&D head for Greater China last year to better understand emerging market trends and the preferences of younger consumers.  

The company has also accelerated its product launch cycle, reducing it from 12-18 months to 8-10 months, with a target to shorten this to six months further.  

Additionally, Nescafé is set to open a coffee innovation center in Shanghai to leverage market opportunities further. 

“We pay close attention to the various stages of consumers’ lives and what kind of coffee needs they have in those stages,” Troisi noted.  

Nestlé has also emphasized its commitment to sustainability, which has increasingly resonated with younger consumers.  

Troisi highlighted that sustainability is a joint responsibility of the entire industry, reiterating Nescafé’s 2030 plan to cut emissions in half and source 50 percent of its coffee through regenerative agriculture. 

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