Nestlé to Put Focus on Coffee, Pet Food, Nutrition in China, CEO Says
Luan Li
DATE:  Mar 26 2025
/ SOURCE:  Yicai
Nestlé to Put Focus on Coffee, Pet Food, Nutrition in China, CEO Says Nestlé to Put Focus on Coffee, Pet Food, Nutrition in China, CEO Says

(Yicai) March 26 -- Nestlé will put the emphasis on three key areas in the China market, namely coffee, pet food and nutrition, the new chief executive officer of the Swiss food and beverage giant, said at the recent annual meeting of the China Development Forum.

Coffee is popular among young consumers in China, so there are many opportunities for growth in this segment thanks to diverse market demand and strategies, said Laurent Freixe, who took the helm of the world’s largest food company in September last year.

China's aging population and urbanization are driving demand for pet products, making the pet market a huge opportunity, he said. Moreover, with growing health awareness and concerns for the elderly, there is also great potential for nutrition products aimed at children, the middle-aged and older adults.

On top of that, with the rise in self-indulgent spending, Nestlé is optimistic about the country’s snack food market. This is the main reason why the company took over candy firm Hsu Fu Chi and purchased the remaining 40 percent equity in March.

Owning Hsu Fu Chi outright will allow Nestlé to expand its footprint in China’s candy market and demonstrates the Vevey-based company’s confidence in and commitment to the Chinese market, Freixe said.

China will remain a key market in which Nestlé will continue to invest, Friexe said. This year marks Nestlé’s 38th year in China, where it now operates 23 factories and eight research institutions. Freixe hopes to provide more support to local dairy and coffee farmers through technology and sustainable agriculture practices to create shared value.

Freixe said he remains optimistic about the Chinese market, which is stable and full of innovation and vitality. He said he is amazed at the rapid development of high tech in the country, such as artificial intelligence, robotics and renewable energy. China is becoming a new driver of global economic growth, he added.

AI Focus

As part of Nestlé’s new reforms, digitalization and AI are now the key focus. AI is transforming how the consumer goods industry develops, and

Nestlé is already using generative AI software and other AI tools, Freixe said.

The firm is applying digitalization and AI across the whole production chain from farms to sales. AI is helping process supplier documents, predict demand and adjust production plans. It is also used in decision-making and product innovation, helping management to make decisions and assisting research and development teams to select the best formulas.

At the same time, Nestlé is paying close attention to China’s progress in fields such as AI, robotics and renewable energy. Freixe met with several Chinese robot makers at the forum and he said he believes that there are huge opportunities for robots in commercial applications.

4D Approach

China is a global leader in science and technology, and Nestlé has benefited greatly from this, Freixe said. For Nestlé to succeed in China, the firm needs to adopt the "4D" approach, namely Decision-making in China, Designing for China, Delivering at China’s speed and Digitalization in China. This way, China can become a beacon for Nestlé’s global growth.

China’s massive economy and huge consumer market stand in stark contrast to the uncertain economic conditions in other parts of the world, Freixe said. The Chinese market shows a long-term stable trend, especially with the government rolling out new plans and policies to boost consumption. This creates the conditions for Nestlé to continue increasing its investments in China. China will play a central role in driving the company’s global growth, he added.

Editor: Kim Taylor

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Keywords:   Nestlé