Nespresso sees ‘massive potential’ as it enters India’s emerging premium coffee market

Nestlé’s Nespresso made its foray into India, launching its first boutique in the country as it seeks to tap into a market long dominated by tea but increasingly open to premium coffee experiences. Philipp Navratil, global chief executive of Nespresso, described India as a “huge opportunity” during an exclusive interview with Storyboard18's editor Delshad Irani, citing the nation’s youthful demographic, growing urban affluence, and rising appetite for upscale consumer goods.

“India is still largely a tea-drinking country,” Navratil said. “But the opportunity lies in household penetration. It’s about expanding the entire coffee market here - and the potential is massive.”

Nespresso’s India push comes at a moment of broader global transformation in coffee culture. What was once largely seen as a functional morning beverage is now embraced as an indulgence, with younger consumers gravitating toward cold brews, milk-based concoctions, and flavored varieties.

“For the first time, we are seeing coffee consumed not just for stimulation,” Navratil explained, “but for pleasure.”

That shift is driving demand for what the industry calls "premiumisation" - a trend marked by a deeper consumer interest in origin, production methods, and sustainability. “People want to know where their coffee comes from, how it’s grown, and who grew it,” he said.

Navratil likened the evolution to that of wine culture, with consumers increasingly seeking to become connoisseurs. Social media and the proliferation of specialty coffee shops have helped accelerate this transformation. “You want a good machine at home - it’s a reflection of who you are and what you value,” he noted.

As part of its expansion strategy, Nespresso is doubling down on its direct-to-consumer model, aiming to bolster digital engagement and tailor experiences to individual preferences. “We want to become better at real personalisation,” Navratil said.

At the heart of Nespresso’s pitch is its commitment to sustainability - a core part of the company’s brand positioning. “We believe the best quality coffee can only be sourced sustainably,” he said. “That means knowing your farmers by name.”

India is also a sourcing interest for Nespresso. The company aims not only to introduce Indian consumers to its global offerings, but also to celebrate locally grown coffees as part of its portfolio.

“Bringing this premium experience to India is a major milestone,” Navratil said. “It’s only the beginning.”

WATCH the full interview here