Nestle is investing US$690 million to build its own coffee production plant in Thailand after the end of a local joint venture.
Between 1990 and 2024, Nestle partnered with local group Quality Coffee Products (QCP) to manufacture Nescafé products in the country. This contract ended bitterly in end-2024 with Nestle bringing its partner to court over ownership rights which ended in favour of Nestle in 2026.
In 2025, Nestle maintained production of Nescafe in Thailand through installing lines in its existing factories, outsourcing to local firms, and temporarily importing products.
The new plant, located in Samut Prakan province, will supply both the domestic market and neighboring countries, producing soluble coffee, ready-to-drink options, and coffee blends. The new plant will also include a distribution centre.
The new state-of-the-art plant, equipped with AI-enabled systems, is slated for completion by 2nd half of 2028. It will also utilise up to Bt 4.3 billion (US$127.6 million) of raw materials sourced locally every year as it seeks to support the local industry development.
Nestle currently operates 7 factories in Thailand. The new plant will increase its Nescafe production capacity to meet rising demand in Thailand’s US$1.2 billion coffee market as well as in Southeast Asia, which has one of the world’s most dynamic coffee market.
In 2025, soluble coffee and coffee systems represented 68.3% of Nestle’s sales in the powdered and liquid beverages segment, contributing close to US$21 billion. Coffee is also the largest growth driver in this segment supported by Nescafe, Nespresso and Starbucks brands. This segment also includes Milo and Nesquik.
Thailand has been an important market for Nestle for more than 130 years.
