Brewing a growth story

AFFORDABLE PRICING, RURBAN EXPANSION AND PREMIUMISATION HAVE MADE NESCAFÉ A KEY BUSINESS DRIVER FOR NESTLÉ IN INDIA

- CHRISTINA MONIZ

NESTLE INDIA'S MARCH 2026 quarter results, which saw a 26% rise in net profit and 22.6% revenue growth, were heavily driven, among other brands, by its power brand Nescafé.

The brand recorded high double-digit growth in both value and volume in the powdered and liquid beverages category. Company chairman and MD Manish Tiwary noted that Nestlé recorded its highest domestic sales in the last quarter, while Nescafé gained market share. Lower coffee prices, thanks to favourable crops in Vietnam and Brazil, helped maintain strong margins for the beverage brand.

Industry estimates put the instant coffee market in India at around ₹10,000 crore. Nescafé accounts for over 50% of this market, followed by Hindustan Unilever’s Bru at 30-32% share. Experts note that the rise of coffee chains and ready-to-drink (RTD) formats have also helped boost growth for the instant coffee market.

Nescafé continues to recruit new consumers into the coffee category, says Sunayan Mitra, head, liquid and powdered beverages at Nestlé India. “Our sustained double-digit growth is the outcome of a consistent, multiyear strategy with a sharp focus on category expansion. Nescafé Classic has been central to this effort. Improved accessibility through affordable packs and sharper distribution played a key role in creating everyday relevance,” explains Mitra.