Nestlé India is riding a wave of growing demand for cold coffee, fueled by the preferences of Gen Z and millennial consumers. The food and beverage giant reported strong double-digit growth in its powdered and liquid beverages segment for FY2024, driven largely by the soaring popularity of NESCAFÉ’s ready-to-drink offerings.
In its earnings report released on Thursday, the company revealed that NESCAFÉ, its flagship coffee brand, added over 5.1 million new households, further cementing its market leadership. The surge in cold coffee consumption is not only boosting sales but also creating new consumption occasions among younger audiences.
“The NESCAFÉ ready-to-drink cold coffee range—among the fastest-growing categories globally—has expanded its footprint in India, tapping into the evolving preferences of a younger demographic,” Nestlé India said in a statement.
Commenting on the performance, Suresh Narayanan, Chairman and Managing Director of Nestlé India, noted: “This quarter, we delivered double-digit growth in Beverages and Confectionery, with three out of four product categories showing strong momentum. Our domestic sales crossed ₹5,235 crore—our highest ever in a single quarter—supported by improved volume growth.”
While the company posted a 5.2% decline in standalone net profit year-on-year to ₹885 crore for the March 2025 quarter, revenue from operations rose 4.5% to ₹5,504 crore—slightly ahead of market expectations.
Beverages and Confectionery Lead the Charge
Among the top-performing segments for FY25 were powdered and liquid beverages, which delivered high double-digit growth. Confectionery, led by KitKat—India’s second-largest market for the brand globally—also saw high single-digit growth in both volume and value.
Prepared dishes and cooking aids, spearheaded by Maggi, returned to volume growth, with the Maggi Masala-ae-Magic line continuing its strong performance. India remains the largest global market for Maggi products.
Nestlé’s pet care division posted its best performance since integration into the Indian portfolio. At the same time, the Out-of-Home (OOH) business registered robust double-digit growth, emerging as one of the company’s fastest-growing verticals.
E-commerce and Quick Commerce Accelerate Sales
Digital channels continued to play a pivotal role in domestic sales, with e-commerce contributing 8.5% of total revenue. Quick commerce platforms were particularly instrumental in boosting urban consumption.
Price Trends and Investment Outlook
On the cost front, Nestlé India noted firm trends in coffee and milk prices, while edible oil remained stable. Cocoa prices, although slightly corrected, continued to be elevated.
The company reiterated its long-term investment commitment of ₹6,500 crore for the 2020–2025 period, aimed at enhancing manufacturing capacity and innovation. As part of this plan, a new ₹900 crore facility is being set up in Odisha, marking Nestlé’s 10th manufacturing unit in India. The facility will focus on the production of prepared dishes and cooking aids.
Despite strong operational performance, Nestlé India’s stock dipped 2% post-earnings to ₹2,383 on the BSE.