India is a massive growth opportunity for premium coffee: Nespresso Global CEO

By Delshad Irani  April 6, 2025, 5:29:14 PM IST (Published)

Nestlé Nespresso is betting big on India’s coffee market, calling it a “huge opportunity” as it opens its first boutique in the country.

Speaking to CNBC-TV18, Global CEO Philipp Navratil said India’s young, curious consumer base and rising interest in premium experiences make it a key growth market for the brand.

“It’s still a tea market, but the opportunity here is household penetration. It’s about making the coffee business pie bigger in India. And the potential is massive,” he said.

Globally, coffee is undergoing a shift in how it’s consumed and perceived. Coffee is no longer just a morning pick-me-up but something people drink for pleasure. “Actually, for the first time, we see that coffee for stimulation purposes… has been replaced by what we call cups for pleasure,” Navratil said.

This evolution is being driven by a younger, more experimental group of consumers who are embracing cold brews, milk-based and flavoured coffees. Alongside this is the rise of premiumisation, with people wanting to know not just how their coffee tastes but where it comes from, how it’s grown, and how sustainable the process is.

“There’s a big trend in people wanting to become coffee experts. It’s really like wine,” Navratil said, noting that social media and coffee shops have helped fuel this culture. “You want to have a nice machine at home. It speaks to who you are and what you like.”

As coffee becomes more of a cultural and social experience, Nespresso is looking to deepen its direct-to-consumer strategy, investing in digital engagement and personalisation. “We want to become better, more engaging when it comes to real personalisation,” he said.

Sustainability, Navratil stressed, remains at the core of Nespresso’s business. “We believe we can only source the best quality coffee if it is grown sustainably. And growing sustainable coffee means knowing your farmers by name,” he said.

With India, the company hopes to tap into both the growing interest in premium coffee and the curiosity around coffee origins — including Indian-grown beans. “Bringing this premium experience to India for the first time is a huge step in the right direction for us,” Navratil added. “This is the first of more to come, for sure.”

Watch accompanying video for entire conversation.