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How Nescafé Instant Coffee Is Made Around the World

Nescafé sells $11.6B a year across 180 countries, sourcing from 100,000 farmers and 13 million bags of green coffee amid rising production challenges.

Introduction: The Global Phenomenon of Nescafé 🌐🚀

Nescafé, a brand under the Swiss food giant Nestlé, has become a household name worldwide. With annual sales of $11.6 billion as of December 2023, Nescafé is consumed in over 180 countries. Let’s dive into the fascinating process behind how Nescafé instant coffee is made and the challenges faced by its producers.

1. Massive Global Consumption 🌍☕

Nescafé is the strongest coffee brand globally and the third-largest non-alcoholic beverage brand. Every day, approximately 3 billion cups of coffee are consumed worldwide, with one in seven being a Nescafé. This figure is expected to double by 2050, reflecting the brand's immense popularity.

2. Extensive Farmer Network 👩🌾🌱

To keep up with demand, Nescafé collaborates with over 100,000 farmers and purchases more than 13 million bags of green coffee annually. This extensive network is crucial for maintaining a steady supply of high-quality coffee beans.

3. Challenges in Coffee Production ⚠️🌡️

Coffee producers face numerous challenges, including fluctuating coffee prices, high labor costs, and environmental issues like deforestation and climate change. These factors make coffee farming increasingly difficult, particularly for smallholder farmers.

4. Climate Change and Coffee Farming 🌦️⚠️

Rising temperatures pose a significant threat to coffee production. By 2050, climate change could reduce the suitable area for growing coffee by up to 50%, putting the livelihoods of millions of farmers at risk and potentially increasing the prevalence of robusta coffee, which is more resilient to climate fluctuations.

5. Investment in Sustainability 💚🌿

Nestlé has committed over a billion dollars to sustainability initiatives, helping farmers adopt methods like planting cover crops and using organic fertilizers. The company is also developing high-yield, disease-resistant coffee plant varieties to improve productivity and resilience.

6. The Coffee Harvest in Vietnam 🇻🇳☕

Vietnam, the world's second-largest coffee exporter, is a key player in Nescafé's supply chain. The coffee harvest season in Vietnam’s Central Highlands is a crucial period, with farmers eagerly collecting ripe coffee cherries to meet global demand.

7. The Roasting and Extraction Process 🔥⚙️

After harvesting, coffee beans are roasted and ground into a coarse powder. Nescafé employs different drying methods for its products: spray drying for Nescafé Original and freeze-drying for Nescafé Gold. These processes involve extracting liquid coffee concentrate and drying it to form instant coffee granules.

8. Robusta vs. Arabica 🌱🫘

Robusta coffee, known for its strong, bitter taste and higher caffeine content, makes up about 95% of Vietnam's coffee output and is a key ingredient in instant coffee. In contrast, Arabica coffee, which has a milder flavor, is less resistant to climate change and diseases but still accounts for 60% of global coffee production.

9. Expanding Coffee Markets 🌍📈

Nescafé is focusing on emerging coffee markets like China, India, and Sub-Saharan Africa. These regions have low per capita coffee consumption, presenting significant growth opportunities for the brand as it aims to cultivate coffee-drinking habits among billions of potential new consumers.

10. Dominance in Home and Out-of-Home Consumption 🏡☕

The global coffee market is worth around $200 billion, with about 25% from home consumption and 75% from out-of-home consumption. Despite this, 75% of all coffee cups are consumed at home, highlighting Nescafé’s dominance across various coffee segments.

Conclusion: The Future of Nescafé 🌟🚀

Nescafé’s comprehensive approach, from working closely with farmers to innovating in coffee production, ensures it remains the world’s favorite coffee brand. As it continues to expand into new markets and address production challenges, Nescafé is set to maintain its leading position in the global coffee industry.

Originally published on LinkedIn .

Amr Elharony
Delivery Lead, Mentor, FinTech Author & Speaker — bridging banking and technology to deliver measurable digital transformation across MENA.

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