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Nestlé capitalizes on growing demand for healthy and naturally functional hydration, as its coffee business thrives, says GlobalData

Following the release of Nestlé’s third quarter results,

Melanie Felgate, Senior Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:

“Nestlé’s third quarter results showed continued positive organic growth performance for the group of 2.8%, with solid performance in powdered and liquid beverages – particularly coffee – contributing significantly.

“In its latest nine months results statement (9M 2018) Nestlé reported an organic growth of 2.9% globally for its powdered and liquid beverages business, which includes Nescafe coffee, alongside other beverage brands such as Milo, Nestea, and Nesquik.

“Nestlé’s strong performance in coffee is reflective of how the brand is capitalizing on demand for healthier forms of hydration. Indeed, consumers are becoming increasingly health-conscious when it comes to their beverage choices. GlobalData’s latest Q3 2018 survey revealed that 62% of consumers cited a product’s impact on health and wellbeing as always or often influencing their choices when buying non-alcoholic beverages; up two percentage points from the same period in 2016.

“Consumers are shifting away from high-sugar segments such as carbonates and juices, towards those which they perceive to be healthier. As well as being low in sugar and calories, coffee also offers naturally functional benefits in the form of energizing caffeine, which further appeals to today’s time-poor, yet health-conscious consumers.

“Aside from its core coffee business, Nestlé has also successfully taken advantage of growing demand for convenience and quality, as evidenced by its reported mid-single digit growth in its premium Nespresso at-home coffee system.

“Coffee is set to continue to be a big growth area for Nestlé looking ahead following its acquisition, earlier this year, of the global perpetual rights to market Starbucks-branded packaged food and beverage products in the retail and foodservice space.”

ENDS

Notes to Editors

For more information on the coffee market please see GlobalData report: Top Trends in Hot Drinks 2018 – The latest trends in hot coffee, hot tea and other hot drinks

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