Nescafé’s Rise To Instant Coffee Dominance: A Story Of Global Market Conquest

Instant coffee consumption in the United States has dwindled, with only 4% of Americans opting for the quick-and-easy offering, according to the National Coffee Association. However, overseas, the trend tells a different story, as soluble coffee accounts for about a quarter of global beverage consumption and continues to rise, according to the Brazilian Instant Coffee Industry Association.

“While American coffee drinkers are increasingly favoring specialty items like espresso-based beverages and cold brews, the popularity of instant coffee remains strong globally,” says coffee expert Jake Leonti of food and beverage consulting firm F+B Therapy. “Contrary to popular belief, instant coffee consumption has been steadily growing for the last 20 years.”

Nescafé, the largest coffee brand under Swiss-based food giant Nestlé, stands as a testament to this trend. Despite its reputation as the “black sheep” of the coffee world, Nescafé remains immensely popular, with 6,100 cups consumed every second globally. The brand is sold in 180 countries, with one in seven cups of coffee consumed worldwide being Nescafé.

To understand the success of the Nescafé brand and the future of soluble coffee, CNBC journeyed to Vietnam, the world’s second-largest exporter of coffee after Brazil, to explore Nescafé’s operations there.

With 25 factories worldwide, Nescafé’s global presence and production capacity are impressive. Despite changing consumer preferences and the rise of specialty coffee, Nescafé’s enduring popularity underscores the enduring appeal of instant coffee for millions worldwide.

As the global coffee landscape continues to evolve, the success of Nescafé offers insights into the enduring appeal of instant coffee and its role in shaping global coffee consumption patterns.