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Coffee Drives Nestlé’s Financial Results: How Nescafé And Nespresso Grew

COURTESY: NESTLÉ

The coffee business was one of the most important growth drivers for Nestlé in 2025, consolidating the global leadership of brands such as Nescafé and Nespresso within a strategy focused on organic growth, innovation, and portfolio strengthening. According to the company’s 2025 annual results presentation for investors, the Swiss multinational achieved organic growth of 3.5%, supported by both price increases and the expansion of key categories, including coffee.

Although factors such as raw material inflation, exchange rates, and some operational adjustments affected reported results, Nestlé emphasizes that the performance of its portfolio—especially coffee—confirms the effectiveness of its global growth strategy.

How did Nestlé perform in its 2025 financial results?

In its annual report, Nestlé stated that the year’s results were in line with market expectations, with solid financial indicators despite a complex economic environment.

Among the key figures:

⇒ Organic growth: 3.5%
⇒ Real internal growth (volume): 0.8%
⇒ Price increase: 2.8%
⇒ Free cash flow: CHF 9.2 billion
⇒ Underlying operating margin (UTOP): 16.1%
⇒ Proposed dividend per share: CHF 3.10

The company also reported that organic growth was sufficient to partially offset the negative impact of currency movements, which reduced reported sales growth to -2.0%.

In this context, the performance of high-demand global categories—such as coffee, nutrition, and pet care—was key to sustaining the group’s expansion.

Why is coffee a key business for Nestlé?

Coffee represents one of the strategic pillars of Nestlé’s portfolio. According to the financial report, this category is part of the four major businesses that account for most of the group’s sales.

Coffee alone represents approximately:

⇒ 29% of group sales
⇒ Around CHF 25 billion in revenue

Within this segment, three leadership positions stand out:

⇒ #1 in soluble coffee
⇒ #1 in coffee creamers
⇒ Global portfolio with leading brands

Among the most important brands are:

⇒ Nescafé
⇒ Nespresso
⇒ Starbucks (ready-to-drink products and capsules)

This leadership makes coffee a central category for Nestlé’s growth, especially in emerging markets and new consumption occasions.

How did Nescafé and Nespresso grow in 2025?

The performance of coffee brands was particularly strong within the group’s portfolio. For example, Nespresso recorded organic growth of 6.0% during the year. Its real internal growth (volume and mix) was 1.6%, accompanied by a price increase of 4.4%.

This performance reflects the brand’s premium positioning, as well as its expansion in markets where capsule coffee consumption continues to grow.

In the case of Nescafé, the report highlights its role within Nestlé’s priority growth platforms, especially in emerging markets, where soluble coffee continues to expand its penetration.

In addition, the company is investing in the development of new formats such as:

⇒ cold coffee
⇒ ready-to-drink beverages
⇒ out-of-home consumption

These innovations aim to capitalize on new consumption trends.

What trends are driving coffee growth worldwide?

Nestlé identifies several changes in consumer behavior that are fueling coffee growth.

Among the most relevant trends are:

Out-of-home consumption

Faster-paced lifestyles have boosted the consumption of ready-to-drink beverages and single-serve formats. According to the report, 55% of food and beverage consumption occasions correspond to individual or “on-the-go” formats.

This favors the growth of cold coffee, coffee-based energy drinks, capsules, and home coffee machines.

Premiumization of coffee

Another key phenomenon is consumers’ willingness to pay more for premium experiences.

Brands such as Nespresso have capitalized on this trend through high-end coffee machines, specialized capsules, and branded experiences.

Innovation in cold beverages

Cold coffee has become one of the fastest-growing areas.

Nestlé considers it a strategic growth platform, with opportunities in new flavors, formats, and consumption occasions.

Sector growth outlook for 2026

Nestlé expects a gradual acceleration in growth, supported by innovation, marketing, and geographic expansion.

Forecasts for 2026 include:

⇒ organic growth between 3% and 4%
⇒ free cash flow above CHF 9 billion
⇒ improvement in operating margin compared to 2025

In the medium term, Nestlé maintains a target of organic growth above 4% under normal market conditions.

Within this strategy, coffee will continue to be one of the key pillars of the business, with investments in:

innovation in cold beverages
expansion of Nescafé in emerging markets
strengthening of Nespresso in the premium segment

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